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How can you trade a car that is worth less than the balance of the loan?
Wiki User
∙ 8y ago
One thing to keep in mind is a lease, most new cars are allowed to finance more than the new car is worth I.E. our dealership can finance 115% of the new cars MSRP note that you can by a car well below MSRP there for hiding your neg balance keep in mind this is carried over into the next loan so you dont get out of it only refinance it
Answer
No, banks won't just let you out of a loan and take the car back, they wouldn't make any money that way. If you owe more than the car is worth, then it isn't worth selling or trading. You should pay off the car as soon as possible or at least pay it down to the value.
Consider refinancing for a shorter period through a credit union and make sure you are getting the lowest APR on the loan.
There are an additional two ways to possibly fix this issue: by getting a short term job to earn enough money to buy it down to the current value and by keeping the car in excellent repair and reducing the number of miles you drive it. Eventually the value will match.
In the future, do not buy a car with a loan that lasts more than three years, and consider a recent year used car. This prevents the new car out of the lot loss and you pay down the loan faster.
Wiki User
∙ 8y ago
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Can I trade in my car when there is a loan balance?
You can trade your car in, however the loan balance must still be satisfied.
Can a car dealership take a trade in where a loan is not paid off yet?
yes, they buy out the loan, and if the vehicle is not worth what is owed the balance can be added to the amount being finaced on the new one
Can you trade in your car if you still owe on the auto loan?
yes you can trade it in. But if you owe more than what the dealer is going to give you for the car the remaining balance will be added to your new loan
Can you trade in a loan car?
Yes. You must pay off the loan with the proceeds, and pay the difference if the proceeds are less than the loan.
Why is more interest paid at the beginning of a loan period that at the end?
Because your balance is high at the begging of the loan so then the balance goes down as you pay money so it comes to be less
Is Loan on balance sheet or off balance sheet?
Loan is on balance sheet
Can you check your loan balance here?
No, you can not check your loan balance here.
How do you sell motorhome with a loan balance?
You must pay the loan balance out of the proceeds at the time of the sale.You must pay the loan balance out of the proceeds at the time of the sale.You must pay the loan balance out of the proceeds at the time of the sale.You must pay the loan balance out of the proceeds at the time of the sale.
If you lost your job and can not afford to pay your car payment can you return the car?
That is a voluntary repossession...not a good idea in the long run. The bank will wholesale the vehicle at an auto auction, apply the proceeds (less selling expenses) to the loan and you still owe the balance. Plus it goes on your credit report. If the car has a retail value in excess of the loan balance, you will be far better off selling the car yourself and paying off the loan. You still have no car...but no car payments and no bad credit report. Even if the car is worth slightly less than the loan balance, you'd come out thousands ahead if you sell it and find the rest of the money to pay off the loan.
What is the balance on a loan?
The balance means the amount of money that you still owe on the loan.
How do you trade in your car when you are still paying the loan for the car?
The balance you owe on the car that is getting traded in will be added to your new car loan. Example You owe 10,000 for the car you want to trade in They give you 6,000 for trade in your new car costs 20,000 you will either have to pay that 4,000 or they will add it onto your new car loan from your car you traded in.
How do you find the payoff balance on a personal loan?
How do you find the payoff balance on a personal loan?
