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Is there a way to trade in your car if you are upside-down on the car loan?
Wiki User
∙ 11y ago
Yes, but the money you still owe (negative equity) must still be paid. Example: you owe $10k on a car and the dealer will only offer you $8k in trade - the $2k difference must be paid. In some cases, your lender or dealer financing will allow you to roll the negative equity into the new payment as long as the loan to value (LTV) does not exceed a certain percentage. Therefore, it is difficult to get into a less expensive vehicle because of the LTV threshold. Dealer advertisements claiming to pay off your trade are simply doing as described above, and this can be dangerous for those with eyes bigger than their wallets.
Wiki User
∙ 11y ago
Mav Div
Well that is going to depend on if you mean upside down like with a mortgage where you owe more than the car is worth, or upside down as in you have been missing payments. If you simply just owe more than the car is worth and have descent credit then yes you can trade the car in. If you have been missing payments then you probably wont be able to trade it in, because the missed payments will have affected your credit and a creditor surely isnt going to give you a line of credit on a trade in, where you are actively taking on more debt than you had previously that you couldn't afford to pay consistently. Hope that makes since.
The best advice would be. If you are upside down on a vehicle. Hold on to it, because in order for you to trade you will have to take on significantly more debt. Basically you are taking on the debt from the difference of what you owed on the car vs what the dealership paid you for the car, plus the debt of the interest and fees of the new car. So Id suggest hanging on to it until you pay it off or try and pay more on it every month until you get to a point where the cars trade in value is more than what you owe. I say trade in value because its very important to look at trade in value, rather than private party value if you plan to trade it in.
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How can you eliminate your auto loan without finishing the payoff?
One way or another, the loan has to be paid off. If you trade the car in, you can get the payoff added to the amount financed on the new car.
Can a co-borrower of a car loan sign a pay agreement with a new car dealership to trade in the vehicle without the borrower's signature?
Nope, no way, abolutely not.
Can a financed car be used as collateral for a loan?
Since the car is financed, it already is collateral for a loan. Your car loan uses the car as collateral for that loan. I think the only way for you to use the car as collateral for a different loan is to have the NEW lender pay off your car loan, tack the ammount of the car loan on to the new loan you are getting, therefore they would then be the leinholder on the car.
Is there a way to trade a car when the owner does not have the title?
If it's just lost, you can ask for a replacment. If a bank is holding the title as security for the loan, you'll have to work that out with the bank.
Is there a way to trade in your car if your upside down on car loan and you have very very bad credit?
Yes you can, if you have a current loan about let say 10,000 and your car is only worth 5000, the next bad credit loan provider will have to bury 5000 in negative equity. It is possible with a bad credit loan provider, it maybe at a higher interest but you don't have a choice at that moment. If you are located in Canada you can try this resource at http://www.autocreditfinancial.ca good luck.
How do you get out of a car loan in which you are upside down?
You can trade it in for a cheaper car and put the remaining balance on the new loan. There is really no way to get out of it, I was in that mess for awhile. Most lenders will do an 'over advance (110%- to 140%) . So you do not have to trade down to cheaper and often trading up is easier. If you are buying a new car, sometimes the rebates can 'cover' your loss. 110% of a 30, 000. dollar auto is a lot more room than 110% of 10,000.
Coverage on auto insurance when you have a car loan?
Yes, you should get auto insurance coverage when you have a car loan, and even when you don't have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..
Is there a way to get a car loan without a job or co-borrower?
Yes. Deposit the amount of money the car costs in a bank, in a CD, and use it as security for the loan that the bank will give you to buy the car.
Can you be arrested for car unpaid finance?
You will not arrested car unpaid. It is a civil matter, but It affects your loan for credit cards, loan for buying new home, plus private loan for your education. The best way is pick up your phone discuss with lender. They could find a better way for you and for them. They make living by helping you event they got mad at you by not paying car loan.
Can you get free doubloons without salvage and trade on poptropica?
no other way other than loan and loan payback will increase 5% every day.
Is there any way to get your name off of a loan if you cosigned for a car loan while you were married and then you got divorced?
The loan has to be "secured" by someone with good credit. Call the lender for their loan qualifications.
How does a person go about refinancing their car?
Refinancing one's car is a risky way to lower the interest on a car loan. The best way to get a lower rate is to see a loan officer at a credit union or small bank which may purchase the car from the lease holder to offer a better rate.
