Yes you can. It does not affect the value. The dealership will add the remaining balance to the price quote. They will pay the loan off after you trade it in. Basically, you're paying that money one way or another.
Yes, a dealership can & do buy cars that people still owe on. But need aware, any monies owed will be added into your new car amount & monthly payment with interest. Really think it through cause sometimes it's not worth it.
Don't say anything about any problems, do not point out any cosmetic problems, don't even hint at mechanical problems or etc when the salesman is talking to you. Let them figure it out themselves.
How does trading in a financed car work? If you're trading in your car with a loan, you'll first determine if your trade-in value is worth more or less than what you still owe on the loan. If it's worth more, you can use the trade-in value to pay off your loan and then use what's remaining toward your new car.
"I Have a Trade-In"
For example, they can lowball your trade-in value, and then lower the price of your new car to make it look more attractive. Or, they may show you a higher value for your trade-in and tell you they're being generous, only for you to then notice that the price of your new car went up.
In most instances, yes, you can trade in a car with a loan, and some dealers might roll your remaining balance into a new loan. But trading in your car doesn't make your loan disappear. You will still have to pay off the remaining loan balance that your trade-in amount doesn't cover.
How Much Negative Equity Is Too Much on a Car? The maximum negative equity that can be transferred to your new car is around 125% . It means your loan value should not be more than 125% of your car's actual worth. If it is more than 125% then your next car's loan would not be approved.
Can you sell a car with a loan? You can sell a car with a loan but you'll need to give the full payoff amount to your lender before they'll release the car title. You can do this with your funds after you complete the sale, or you can refinance your car loan or apply for a personal loan.
Your total-loss insurance payout will be for your car's ACV only. If you owe more money on your loan than your insurance settlement, you are still responsible for paying the difference. Most insurers offer "gap" coverage, which pays the difference between your car's AVC and your loan balance.
They can sue you for the balance you didn't pay for the down payment, but unless it was in the contract they can repossess, the law in CA doesn't allow it. Under California law, a breach of contract occurs when one party fails to fulfill a legal duty the contract created and causes damages for the defendant.
If your lender can't locate your vehicle to do a "self-help" repossession, they can still sue you for the vehicle. This will involve a small claims case, where the judge will order you to give the car to the lender. You might even be compelled to Court to provide testimony about the location of the vehicle.
No! You signed a contract. If you return it they will resell it probably for a lot less than you owe and you have to pay the difference! What can I do to get my down payment from a car dealership?
A dealer may allow you to trade in a financed car for a lease, but you'll still be responsible for the amount you owe on your current car's loan. Due to depreciation, you may owe more on your vehicle than its trade-in value.
CarMax buys vehicles that are not paid off. To sell a car you still owe money on to the retailer, you must provide loan information so CarMax can pay off the lender. If you owe more than your offer, you will need to cover the difference.
If your car's trade-in value is more than your current loan balance, then you're all set—you can just pay off the old loan and apply the difference toward the cost of your new vehicle. But if you owe more on your car than its trade-in value, then you'll have to make up the difference.
If you're interested in trading in your upside-down car, some dealerships will offer to pay off the loan for you. Sounds too good to be true? It's because it is. While the dealer will pay for this loan upfront, this balance will get added to the loan of the new vehicle.
So, you can find out the value of your car and sell it to the dealer without thinking about your credit. If you are selling or trading in your car for another model, though, and are planning on financing, the inquiry process can impact your score. However, the vehicle trade-in itself carries no weight.
Most of these dealerships even promise to pay off the balance on your auto loan. However, unless your local dealership is a charity, it will not make your loan disappear; it will pay off what you owe your lender and find a way to factor the expense it incurred into the price of the vehicle you purchase.
Trading in your old vehicle, if you have one, could help lower the amount you need to finance with a zero down payment car loan. The trade-in value of your old car essentially works to lower your financed amount in much the same way as a down payment would, without any upfront cash required from you.
The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...
You research the price you should pay before visiting the dealer. Use invoice less holdback less any known incentives. You never negotiate down from MSRP or the dealer's offer. That plays into the dealer's game.
Make sure you're getting a competitive offer on your trade-in by getting multiple offers. Getting multiple appraisals is smart because the prices you're offered can vary from dealership to dealership. It depends on each dealer's current inventory, how confident they are in selling the trade-in, and other factors.