Car Trade In questions

precisionk

Interested in trading in my car. Roughly worth around $17k, however I still owe about $20k on it. If I were to trade it in and get something else. How does the process work when you still owe money on the car. Is the trade in put toward the value of the new car or the old card? Any ideas or suggestions?

saltiness

You're going to end up with an additional $3k rolled into the loan for the new car. Whether the trade in is put toward the new car or the old car is meaningless. You're essentially buying the new car for $3k over the normal price.

http://www.edmunds.com/car-buying/being-upside-down.html

precisionk

saltiness wrote: »

You're going to end up with an additional $3k rolled into the loan for the new car. Whether the trade in is put toward the new car or the old car is meaningless. You're essentially buying the new car for $3k over the normal price.

http://www.edmunds.com/car-buying/being-upside-down.html

Thanks for the link, that is very helpful. So essentially, they pay off the existing loan and the balance of that loan gets transferred into the new loan?

Thundyrkatz

Correct