can a person trade off a car for another even if they still owe payments on the first one?

Question

have a van would like t9o trade for smaller vehicle but still have payments on the van.

Answer 1

You can, but the dealership will probably not give you a very good deal. You'd be better off to sell your van and pay it off, then buy a new car.You never really get a good deal by trading in a car. I just traded one in that was paid off and as soon as it was done, I regretted it. I got $16,000 for a car that I could have sold for $22,000. Good luck!

Cute name. I used to play hookie in school, esp. if it was sunny out. I'd stay home and lay in the sun.

Answer 2

Right now you owe $8000 on a car that is worth $6000 .That puts you $2000 in the hole. If you trade it in on $15,000 Nitro, you will end up owing $17,000 on it and because it is newer it would be depreciating (losing value) faster. This might work but only if the Nitro does not need any work for a long time. The best solution would be have the Ford fixed good and to pay it off ASAP so you can get what you want. It sounds like the KIA people are not doing a great job for you. If you find someone who can really fix it, that would be best, If not, then I say trade it in on a cheap new car with a warranty that will last at least until it is paid for.

Answer 3

This is done all the time. It is much easier to do if you trade van in to a dealer. They can then roll in the remainder of payments owed into the new car... Depending on the situation, if you owe a lot and your buying a new car, you cant role in more than 35% of the new cars value.

Answer 4

The loan on the van still has to be paid in full somehow. It may not be a good financial move to do this. Be prepared to lose money on the deal, if not directly out of your pocket, then in the form of increased negative equity on the smaller vehicle.

Answer 5

Yes, if you owe 10,000 dollars on the car you are trading off and the dealership will give you 7,000 for it, then there is a 3,000 dollar deficit that can be finaced with the new car being purchased. This is called negative equity, because the new car cost is, let's say 20,000 and then you are adding the 3,000 dollars to it. So you owe 23,000 dollars on a car that is worth 20,000. Or worth less because a new car depreciates as soon as you drive it off the lot.

Answer 6

yes you can -
the car dealership that you get your new new/used car from would assume responsibility of your car loan - but that amount would be added to your new/used car loan you get from the dealership usually minus the amount they can sell the car for - as long as you pay off your new loan there wont be a problem on your credit -

i would suggest trying to sell your van for the amount you owe now - or maybe a few hundred dollars less - it may not make sence to pay those few hundred dollars extra when you can add it to another payment - but not doing this could result in paying way too much for a smaller car -

Answer 7

Yes, but be careful. If you are upside down on your old loan, the negative equity will be rolled into your new loan and your new payments will be higher than you might want.

Answer 8

Yes you can, but you have to get the lein released from the bank. But..Without approval from the bank..NO

Answer 9

yres