How do car dealers treat a trade in if you still owe a years worth of payments on the car?
I can’t help but look around at all the cheap prices on cars and was thinking of making an upgrade. I still have a year of payments on my current car but I was curious how a dealer would go about trying to make a deal with me. Can I trade in a car which I still owe money on? Do they just knock the balance off the trade in value? I am totally clueless and would appreciate any help.
OK. Twisted needs to quit answering questions that he doesn’t know the answer to. This is the third or fourth answer of his that is TOTALLY wrong.
Here is how it works (assuming a few things):
Say you owe one years worth of payments at 300.00 per month.
That is 3600.00. If your car is worth 2600 for example, you will have to roll in 1000.00 on the next purchase.
If your car is worth 4600.00, you have 1000.00 worth of equity. That is used as down payment money.
The dealership pays off the lender (whatever bank it is…Wells Fargo, Toyota Financial, American Honda Finance Corporation, or etc.), and you drive away in a new car. It’s that simple.
If dealerships weren’t allowed to take in trade a car that has payments left on it, NO ONE would be able to buy a car.
I REALLY wish people would answer questions that they know the answer to for sure. Not make up some BullSH&t.
So, the answer to your question is yes, you can trade a car in that you still owe money on. I deal with it every day.
From your friendly Toyota Salesperson
If you are in Northern Indiana, email me. I can help.
Twisted, I find it shocking that you cannot trade in a vehicle if you owe money in the UK. Why can’t the dealership cut a check for it, payoff the lender and go from there? I would have to have confirmation on that from another person in the UK.
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