Can I still trade in a car if there is still money owed on it? What happens to my current loan?
2007-09-10 16:20:20 · 4 answers · asked by gigi_victory 3 in Cars & Transportation ➔ Buying & Selling
Better to sell the car yourself if you can...a dealer will only give you a wholesale price for the car, one way or another (no matter how they fix the numbers) which could be a few thousand less than if you sell it yourself and if necessary, scrape up any extra amount to pay it off and start fresh. If you trade it in, any excess amount of what you owe can be rolled into the new car loan but then you'll be stuck with it for the life of the loan...it's just postponing the inevitable and digging a deeper hole of debt. Negative equity like that just takes time to pay down. Look into leasing for no or low downpayment and lower monthly payments than buying if you trade ever few years and don't drive excessive amount....you gain no equity in the vehicle when it's paid off, you're basically renting it.
2007-09-10 17:08:55 · answer #1 · answered by paul h 7 · 0⤊ 0⤋
Yes you can but what you owe on your trade in is added to the new car..... so it is a good ide to pay off almost all of what you owe on a car if you want to use it as a trade in.
2007-09-10 23:28:00 · answer #2 · answered by Stampy Skunk 6 · 0⤊ 0⤋
You still have to pay off the loan somehow. The dealer will pay it off, but it will be tacked onto the price of the new car.
Try to sell the car on your own, then use the cash for a down payment on you new car.
2007-09-10 23:28:41 · answer #3 · answered by White Wolf 4 · 0⤊ 0⤋
Your what is called up-side down, yes the seller can tag on an amount to your new loan.
you did not mention how much your negative therefore I cant be specific, keep in mind adding negative to a new loan will dig you a deep hole that you may never re- cover from.
Learn the steps how to buy a vehicle through my website http://www.usedcartips.org/
2007-09-10 23:37:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋