I want a new car, but I owe on my current car, what options do i have?

Question

I want a new car, but I owe on my current car, what options do i have?

Answer 1

Depends on credit.  If good then they would roll inequity (IF there is) into new car payment as long as it does not exceed 125% of MSRP. If it does then you will need a down payment to make up difference. If fair credit then you will need if you have inequity all of difference of what you owe and what car is worth.+ down payment.  If you finance 125% of MSRP then APR goes up.

Answer 2

get a new car and dealer will give you a trade in value on your current car

Answer 3

you can still get a new car.  The dealer will give you a trade in value on your current car, which is probably going to be less than what you owe ..this is called negative equity.  Then the new car you get will have to have a blue book value of what you're going to pay PLUS the amount that is negative on your current car.  Then you will take out a loan for that amount (new car cost + the negative equity on your current car).

The only problem with this is that you are paying more for your new car than it's probably actually worth ....this then gives you a future of never ending negative equity.

Answer 4

It really all depends on what you owe and what kind of condition your car is in. You can get the dealer to give you more for your car than it is worth. Trust me, I do it on all my cars that I trade it. You may come out almost even or within a few thousand dollars, which may not make that much of a difference if you tack it on to your new car loan. It depends on if you are getting an expensive SUV or a cheaper sedan in the teens. They will usually only let you tack on a price if you purchase a new car. That is a smart idea because then your negative equity won't be as much as if you tacked it on to a used car.

Just work the dealer and let them know if you aren't happy with what is going on. WALK OUT if it doesn't work. You are not obligated to do anything you don't want to, so don't let them pressure you.