What happens when you do a trade-in on a car that still has a large remaining financed balance? Would it be better to sell it independently and use the remaining money as a deposit on the new car?
by 
ufgator
ANSWERS: 2
-
When you trade in a car that is financed, your dealer will subtract the trade-in value from the balance owed and apply that to the financing of the new vehicle. So lets say that you owe $9000 on a car that has a $7000 trade in value- And the car you wish to purchase costs $14,000. The dealership will pay off the balance on your old car and then finance your new car at $16,000. When a car is financed, the bank has a restriction on the title preventing you from selling or transferring it to another party until the loan is paid off. Therefore, you cannot sell it independantly even if you wanted to;
-
It is illegal to sell a vehicle that has a lien on it. a felony in most states. probably, the only choice you have, is couple the outstanding balance on your present vehicle with the financed amount of your new vehicle. you may be paying on the balances of both combined vehicles for a long time. hope you are not too old. you'll need the longevity.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC