Can you trade your car in if it's not paid off?
- Trump 2020Lv 74 weeks agoBest Answer
Yes, but not always. Depends on how much you owe.
- AlCaponeLv 74 weeks ago
Depends on how much you still owe compared to the trade value. If you still owe more than the car is worth, you are "upside down" and will affect whether you are able to trade or not. If the difference ("negative equity") is relatively small, the dealer might be able to add it into your new loan. If the difference is relatively large, your dealer might be able to add part of it (or not) and you will need cash to make up the difference.
Of course, if you owe less than the car is worth, your dealer will use the difference ("equity") as part of your down payment on your new car.
- .Lv 74 weeks ago
yes, the dealer adds what you owe to the sale price of the car and you finance that amount
- oldprofLv 74 weeks ago
Not really. What you do is sell your car and pay it off with what you get, plus whatever the difference might be, plus whatever fees the holder might charge. The good news is that the dealership that's taking your car as a trade-in does all that for you. So it's not as complex as it might seem.
- How do you think about the answers? You can sign in to vote the answer.
- Anonymous4 weeks ago
It happens every day at dealerships all over the country.