What if I took my car into a dealership to trade in my car that I owe money on?

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You can do this - but it's kind of expensive. You can usually trade in a car that you owe money on, so long as your name alone is on the title that is being held by the current lender. You will negotiate a trade-in price for your current vehicle, then the difference between the trade-in price and the sales price will be added to the amount needed to pay off your current loan.

This will become the opening balance on your new loan. For example, if your new car costs $20,000, your trade-in is worth $11,000, and you owe $5000 on the trade-in, the amount you'll be financing is $20,000 - $11,000 + $5000 = $14,000. The dealership, or rather, the loan brokers they work with, will take care of the paperwork.

You'll need to provide them with information about your current lender. I don't recommend buying a car this way. The amount you owe on your current loan will be amortized with the new balance, and if you had only two years to go on the $5000 you owe, you'll now have interest to pay for four years (or more, depending on how you finance) on that $5000 instead of two.

This will cost you hundreds more in interest payments than if you wait until your car is paid off to trade it in. The higher the balance on your existing loan, the more it's going to hurt. If you've gotta have that new ride, you would do better to pay off the balance on your car using money from somewhere else.

If you can't pay it off outright, with your own cash, then you'll need to take a personal loan of some kind. Get one with an interest rate and period that's at least equal to what you are paying now. For example, if your car loan is 6% and you have 2 years left to pay, get a personal loan that is 6% or less, and pay it off in 2 years or less.

Home equity loans are your best bet here. If you belong to a credit union where you work, that's your next best option. Sources: Experience .

If you go into a car dealer ship today, They will give you the price of the car that you are interested in. Then they will tell you what your trade in is worth. If it is more than what you now owe on the car, they will take the money and pay off your car and put the rest toward the new car you want to buy.

If you are in the whole they will take the trade in apply it to what you owe on the old car, then they will add what is left to the new car and give you a monthly payment. But the answer to your question is yes, either way you will no longer owe on the old car. All dealers do this.

They couldn't stay in business with out doing it.

Well that's easy The money you owe on the car would be added to the sale price of the new car you want to buy, here is a problem down the road. Hypothetical, you buy a new car for $23,000, your old car loan is a balance of $4,000, now your paying on a new car for $27,000, which means the car you buy is Blue Booked, at $16,000 in 3 years, you still owe about $23,000 on the car you have (included is the $4,000 you have already made in payments) you have still a car that's only worth $16,000, and owe $23,000, so there is no way you are ever going to get a fair price if you trade it in again. Best thing to do, if your car runs good and the outside is presentable, sell it out right, dealers will never give you what it is really worth.

Or keep it and finish paying it off. And then sell it. Car dealerships are only looking for one thing to sell you a car, they will do anything they can to make money that is their Business, they don't care that you have not paid for the car your wanting to trade in, paid or not paid for.

Like any business They are in it to make money,, anyway they can.

See "Brooklyn Bridge" Selling something you don't own is generally frowned upon. Indeed, it's even illegal in some parts. There are two basic situations: You owe $12,000 on a car that is now worth $10,000.

This is called "being upside down", or "in the bucket". Even if you trade in the car, you still have to chip in another $2,000. It happens.

Other case: You owe $3,000 on a car that is now worth $15,000. Not so bad. Most dealers will give you $12,000, use the extra $3000 to pay off the loan.

Done every day. By the way, you're likely to get more for your car if you sell it yourself. Bit of a hassle but usually pays very well.

Take personal responsibility for your financial commitments! It is not very wise to trust any third party to to take care of any personal financial responsibilities for you. Remember, it's your credit not theirs that gets whacked if they are slow about paying it off or simply "forget" to do so.

Sure, they might be legally obligated to do so, but let's consider what happens if they don't. You probably won't know about it until the creditors start calling and hounding you, at which point you have to call and complain to the dealership. They will, of course, be very apologetic and tell you that it was a clerical oversight and not to worry.

Then, maybe they'll pay it off and maybe they wont. If not, ultimately your choices are to sue them or forget the whole thing. They are betting that you don't have the time nor will to sue, but if you do the best you can hope to achieve is an apology and a court order for them to do what they promised in the first place.

So.... finally they pay the thing off. Great! By this time the car you bought from them is old enough to need replacing.

You go to buy a new one and find out that because *you* didn't pay off your previous car loan in a timely fashion you have trouble finding a dealership to finance you a new ride. Of course, the dealership that screwed you around might help as another act of contrition, but in their mind they are really thinking "Sucker! Now I'm the only game in town for him...".

Sources: This ain't my first rodeo...

Can a used car dealership sue me if I let the car go back" "I owe money on my current car. I need to trade it in. Can I lease a car after my trade in?

" "can I trade a car in if I owe 15,000 for a car that is 30,000" "Will a car dealership take 1 car as a trade in for 2 different vehicles? " "I have a 2005 F-150. I owe $10,900.

Can I trade down for a car for 5-6,000 and have the dealer pay off the note? " "i want to get a new car but I still owe on my present car if I trade it in do I have to pay the outstanding money or wou" "my car parts were stolen and sold when I still owe money on the car. What do I do?

" "I'm paying off a car at a local dealership; can I trade it for a lower priced car and only make one monthly payment? " "What if my trade in value is three thousand but I owe three thousand two hundred on the car. What about down payment" "I owe $15K on a car whose trade-in value is roughly $12K.

What happens if I trade-in for a $5K car? Do I get $4K back?

Can a used car dealership sue me if I let the car go back.

I owe money on my current car. I need to trade it in. Can I lease a car after my trade in?

Can I trade a car in if I owe 15,000 for a car that is 30,000.

I have a 2005 F-150. I owe $10,900. Can I trade down for a car for 5-6,000 and have the dealer pay off the note?

I want to get a new car but I still owe on my present car if I trade it in do I have to pay the outstanding money or wou.

My car parts were stolen and sold when I still owe money on the car. What do I do?

What if my trade in value is three thousand but I owe three thousand two hundred on the car. What about down payment.

I owe $15K on a car whose trade-in value is roughly $12K. What happens if I trade-in for a $5K car? Do I get $4K back?

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.