When using a car for trade how would it work if I still had owed money on my car loan would I have to pay that off before I can trade my car . How does it work
I don't advise doing this, but dealers will frequently offer to roll what you owe into the new loan.
It's called "negative equity" and it makes you "upside down" the minute you make the deal. Again, if you have plenty of cashflow and don't mind doing this , but, make sure that you pay off the new loan to the termination date. It better be a car you really love and want. What's wrong with keeping your current car??
If your car is worth more than you actually owe, you'll have some equity to use towards this new vehicle. That would be the best situation. Good luck.
Thanks...I got a car I could afford payment wise . So now I want to trade for something that I really want nothing wrong but equity not more than whats owed thanks for the advice
lcporter- I understand, it's always better to get something you really want but can afford... and pay off the car , then keep it for 4 to 5 years. You'll almost always be money ahead this way. What are you planning to get???
If my answers have been helpful, please mark one of them best answer. Thanks.
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