Did You Know?

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What Happens When I Trade in a Car I Still Owe on?
The process of trading in your car while you still owe money on it is simple and also a very common occurrence. When you trade in any vehicle the used car dealership will value of your current vehicle off the price of the new one you wish to purchase. By trading in your current car that you owe money on you simply add one more step to that equation.

To trade in a car you are still financing, the dealership will consider the value of your trade-in, minus the amount you owe, and subtract that amount from the price of your new car. In some cases, this might mean that you bring forward negative equity from your vehicle, meaning that you bring forward some of what you owe on your current vehicle and apply it to the loan for your new vehicle.

 — Ask me! Approval Guy