trading a car in to a dealership that has a loan on it?
ok i took a loan out on a 2005 300c chrysler,
i find a new car at this dealership and i want to trade off my 300c for the new car do i still have to pay off the first loan or does the trade in value go to the loan?
- deljack05Lv 61 decade agoFavorite Answer
If the dealership takes your car in on the trade in they will pay off the first loan and tack it onto the price of the new car you buy. It is a roll over and that is why you hope to get more for your trade than you owe on it. Don't tell the dealer that you owe on the car until after they give you a trade in amount. That way they won't short change you. Get the trade in price first.
- 1 decade ago
300c you owe $10,000
Trade in value = $7,000
Loan left = $3,000
New car = $20,000
New car loan = $23,000
The dealership will add the remainder of your existing loan to the loan for the new car. This is called being "upside down" in a loan.
- cheeseboroughLv 44 years ago
it incredibly is between the oldest scams vehicle sellers use to get you right into a vehicle you may not handle to pay for. it rather is between the biggest blunders human beings make. on no account get carry of a vehicle till the financing is authorized and finalized. Now your pal might desire to the two return the motor vehicle and get the cost of his commerce-in funds decrease back - can not get the motor vehicle decrease back - or arise with a bigger down fee (which he possibly does not have) or sign for a plenty, plenty bigger interest fee (which he possibly can not handle to pay for). Your pal could be waiting to get his own financing returned. yet his loan interior the process the motor vehicle broking might consequence his skill to get his unique loan decrease back. each and every time you stick to for credit, your score takes a ding. And if his score is basically a element or 2 above, the minimum, then that application my push the score under the minimum and could not get authorized. it rather is a numbers activity. whether he took the broking to courtroom, the excellent he can anticipate is the cost of his commerce-in refunded. yet he could be fortunate and get the whole sales cost the broking have been given for the motor vehicle.