When trading in a car, will the dealer pay off the loan if your not upside down?

Question

Here is the situation:

Our present Car is worth $3,000

We owe $2700

The dealership is going to give us $3,000 toward the price of the new car.

The new car is $8526.00 and will be reduced to $5,526.00 when you put the price of the trade in towards it.

Will the dealership pay off the $2700 that we still owe the bank? or will we be responsible for it.

We will be financing through the same bank.....

Can the dealership assume our trade in and resell if there is still a lien?

Answer 1

A car dealer has to have a clear title to re-sell your vehicle. The easiest explanation is this... the amount on your existing loan will be added to the price of your new car, minus the trade in allowance. In your case, the car is $8526., minus an allowance of $3000 for your tade, making it $5,526, plus the payoff of $2700, making the total amount you finance $8226. You have a total of $300 equity in your trade, and will no longer be responsible for payments on the old loan.

One of the most annoying ads out there is the "we'll pay off your trade, no matter how much you owe." A lot of people don't understand that you have to pay off the loan on your trade to legally trade it, so the balance owed just gets added to your new loan, and while the dealership technically pays off your trade, they get the money from you.

Answer 2

1

Answer 3

If the dealership is giving you $3000 for your trade in and you owe 2700 (check on that amount because it is usually lower when you go to pay off the vehicle. You call and ask what the payoff amount is that means you will only have $300 left for a downpayment. That means the new price of the car will be $8226.00. I think you are a bit confused on how this works. Yes they pay the bank off and put what is left over towards the new car.

Answer 4

If they are giving you a $3000 trade-in and you owe $2700, they will most likely pay off the old loan with that and use the extra $300 as a trade in amount. My guess is you will be financing 8226.00 . Hope this helps!

Answer 5

the dealer is going to give you $3,000.00 for your car and they are going to pay-off the bank and you are out from under that car and next you will be paying for the whole thing --- do the math .. .. if your present car is worth $6,000.00 then yes you just might get the 3mil off the price of the new to you car ... the dealer has to pay the bank to get the title so he can re-sell your old ride .. .. but if the old ride is only worth 3,000 then do you really think the dealer is a 'good guy' and he's going to give away $3,000.00 .. if I were you I would review the monthly payments of both cars yours and the dealers and see just what's UP .. .......... have you looked at more than one car lot ???????????? It is real easy to get sold a car (cause they all look so good compared to the junker that we are drivin' now) ----- it is another thing to buy a car that is our choice and carefully check the payments and the time (months to pay) and have your mechanic look at the car to be sure it is okay ........... basic advice is right here .....

Answer 6

since your car is worth 3000.00 and you owe 300.00 they will add the 2700.00 to the loan of the new car. if the car dealer pays off your car they will only give you the amount the car is worth over the pay off which is 300.00 making the car 8226.00. when buying a car always remember you are the customer and you can go anywhere to buy a car. it is their job to make it so you will buy from them. don't be afraid to say " thank you for your time BUT we are going to look some where else" when people get pasted the idea that a car dealer is doing you a favor to what it really is "your doing them a favor"

Answer 7

Ask the dealer. They probably won't pay off the loan as that means they'll only be getting $2826 for the new car. I'd say you were responsible for payment of the loan since they're "giving" you three thousand for the trade-in.

Answer 8

they will pay off your car