I have a car loan that's 43K, trade in is around 28K, if I traded it in for something of the same trade in value how would that work?
- BortLv 61 month ago
Regardless of what you do you will be responsible to pay off the balance of the loan. When you trade a vehicle in the amount offered for the vehicle you're trading is applied to the price of the vehicle you're buying. There is no money transfer, you don't gain any money or anything other than the trade-in amount off of the price of the new vehicle you're buying. You're still going to owe and be responsible to pay the balance of the loan whether that's by just continuing paying the payments until it's paid off or paying a lump sum for the remaining balance or paying the "buy out" cost to pay off the loan and satisfy the financer which may be a lower cost, if they have a buy out policy.
You're still responsible to pay off the current loan.
- ElGrandeLv 71 month ago
No matter how this is spun... you won't be trading in with $15K in negative equity unless you have a TON of cash to overcome it.
No lender on the planet is going to let you carry that much negative equity to a new loan. Wouldn't matter what vehicle you chose.
- River EuphratesLv 71 month ago
- zipperLv 61 month ago
You would still be paying off the balance on the first car, unlesss the dealer will take over the charge. Some will some NO WAY IN HELL!
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- PoppyLv 71 month ago
No can do, you owe more than it’s worth. It’s that 15k difference.
- MichaelLv 71 month ago
It works by you coming up with $20,000 in cash, because no one is going to loan you $43,000 to buy a $28,000 vehicle.
- Anonymous1 month ago
They would give you at best a $24k car for yours, Meaning you go from $15k upside down to about $20k. And no lender is going to allow that.
- Anonymous1 month ago
Talk to a dealer. You will still be paying your $43k loan plus fees on your $28k car. You are in a no win situation.
- USAFisnumber1Lv 71 month ago
The LOAN is not effected by the value of the car. You OWE $43,000 and that is what you have to pay. If you try to trade the car, which is collateral for the loan, you will have to pay off the loan to get the title. They will not release the title without getting their money. Best case would be you have to pay off the remainder of the loan. The car is now clear and you own it and have the title. Then you trade it even up for another car, for which you can get a loan for that car for $28,000. You will have to figure out where the difference between that and what you had to pay to clear the first loan comes from. Bottom line, your best bet is to keep the car you have and pay off the loan.
- ANDRE LLv 71 month ago
Very, very badly.
You're in the HOLE for $15K. That means you literally would have to PAY $15,000 cash just to NOT have the vehicle you have now.
So, you'd be OUT $15K AND have NO car at all. Once you do that, you can THEN buy another car.
And no, no legit car store would ever let you roll $15K more on a new car loan.