When you trade in a car that is not paid off does the whole balance of that car get added to the new one?

Answer 1

It all depends on if you have equity in your car or if you are upside-down on it.
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Equity (being upright): Means that the value of your car is GREATER than the amount you owe the bank for your vehicle.

In-Equity (being upside-down): Means that the value of your car is LESS than the amount you owe the bank for your vehicle.

After contacting your lender and verifying your payoff, see what your car is worth on the NADA website to find out if you are upright or upside down.
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If you have equity in your car, then the dealership will pay off your old note with the value of your car and SUBTRACT the remaining balance from the cost of the new car.

If you are upside-down in your car, then the dealership may elect to pay off your note and ADD the remaining balance to the cost of the new car.

Typically 37 months into a 60 month loan is when you achieve equity, but that's very situational.

Don't let the dealer trick you by not giving you a fair price for your old car. That is equally as important as the cost of the new car.

Answer 2

Well...depends on if you owe more than the trade-in value. If you do owe more (which is the predicament I'm in right now), yes, the remaining balance you owe will be tacked on to your new car balance. If the trade-in value is greater than what you owe, that amount would be subtracted from the new car balance.

Answer 3

Generally, yes it does. Of course this is the pay off balance not the interest. Call your loan officer and ask for the pay off balance. This will be the amount that is added to your new car purchase.

Answer 4

In general yes but that also depends on the value of your car in contrast to what you still owe.
Say you have a car that is valued at 2000 dollars and the dealer is willing to give you 2000 dollars for the car because it is th value of it they pay it off. So it zeros out. However if you owe 2500 on a car and it is valued at 2000 there is a 500 dollar difference. Those 500 dollars will be rolled into your loan.
So say you buy a new car for 10000 it will actually result in a price of 10500.
I hope this helps.

Answer 5

when you trade in a car that is not paid off the dealer will pay off the balance of the car.if you owe more on your trade than its worth the extra will be added to your new balance, like if you owed $5000.00 but trade value is only $4500.00 they would add $500.00 to your new loan balance

Answer 6

No but you will have a new car and be upside down in the loan practically until it's paid off due to the negative equity. If you plan to keep the car, it's great, but will cost you thousands if you ever want out of it.

Answer 7

Not really, the dealership is going to give you a trade in value for your old car, you subtract that value from what you owe and the difference is what you will get stuck adding to your new car financing.

Answer 8

Just say the car you traded in, they are giving you $8000.00 for it and you still owe $5000.00 on it. They will take $5000.00 and pay it off and apply the $3000.00 to your new one. Hope this helps.

Answer 9

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Answer 10

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