Is it possible to trade in a car that I still owe $9k on and get a new one? How would that work?

Question

Or would I have to sell my current car and then use that money for the down payment on another one?

Answer 1

y not?

Answer 2

Is it possible? Yes. Is it the smart thing to do? That depends. If the trade in value is in line with what you owe, then it may be a good idea. If the trade in value is half of what you owe, then you'd be financing the difference on top of the new vehicle, which isn't a smart thing to do.

Answer 3

Well, you could trade it in. They would pay the remainder of the loan off. BUT, 90% of people have negative equity in their cars. That is where they get you. Say for example, you owe 9000 dolars on your car, well the dealer says it is worth 7000 dollars. They will add the difference of 2000 dollars on to your new car loan.They will pay the loan in full, but they will get you in the end. I worked at a dealership a while back, for a long time. If I were you I would do my best to sell ur car on ur own,  even if it is for what you owe on it, and start over fresh. Once you get started with negative equity, it is down hill from there.

Answer 4

The dealer will calculate the loan into the new deal, and if you go ahead and buy a new car, the dealer will pay off the previous loan.

Answer 5

best case would be if the car you owns trade in value is worth more then 9000.  But if you owe 9000 and the dealer is giving you 7000 for the car, you need to pay the 2000 difference.  This is done at the dealer ex. if you new car is 190000 and you owe an additional 2000 for the old one,  your loan would be for 21,0000.  This is a time that you do not want to pay sticker for the new car.  if the sticker is 21,000. look to pay about 19,500 for it.

Answer 6

You can do it, its how you go about it. You can go the easy way and trade it in but you will be upside down if its decided that your car isnt worth the 9k.  Or you can shop it around to different places and just tell them you just dont want it. It should be a different transaction from buying the new car.  These dealers will rip you off.  Or put it up for sale by yourself, which you could stand to make more off of it. Think about it when you sale your car to a dealership they tell you what its worth then they mark it up to sale it!!!