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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


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.

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โˆ™ 2015-12-28 00:53:17
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Q: How can you trade a car that is worth less than the balance of the loan?
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Related Questions

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.

Is Loan on balance sheet or off balance sheet?

Loan is on balance sheet

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

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.

What is the balance on a loan?

The balance means the amount of money that you still owe on the loan.

How do you find the payoff balance on a personal loan?

How do you find the payoff balance on a personal loan?

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 opposite of a fully amortizing loan?

Any loan where the loan balance is not paid off by fixed, regular payments. A balloon loan is a simple example. The loan comes due before the balance has been paid off. The outstanding balance is then paid in one lump sum. A fully amortizing loan is a loan with a monthly payment of sufficient size and a term long enough that the outstanding balance of the loan will be reduced (amortized) to zero. In other words, on the maturity date of the loan (the date you can stop making payments), there is no outstanding loan balance to be paid off. The loan has been paid in full. A portion of each monthly payment was used to pay interest on the outstanding balance. The remainder of each monthly payment was applied to the loan balance as a repayment of principal. There is no "opposite" of this. There are alternatives. A loan could be interest only -- where the entire monthly payment represents interest and there is no amount of it applied to the loan balance. As such, on the maturity date of the loan (the end of the loan term), the payoff balance due to the lender is identical to the original loan amount. There has been no amortization of the loan balance during the term of the loan. Another alternative is a loan based on 20 year amortization but with a 5 year term. In this case, the loan payment is established by the amount that would be required to fully amortize the loan over a 20 year period (down to a balance of zero). However, at the end of 5 years, the loan matures (the end of the term) and the remaining balance must be repaid. That payoff amount will be less than the original loan amount because some amortization has occurred, but is certainly greater than zero (which would have taken another 15 years to reach).

Is bank loan considered as an item in cash flow statement?

The balance of a bank loan is a liability item on a balance sheet (or net worth statement). The principal and interest payments used to repay the bank loan are cash outflows (debt expenses) on a cash flow statement.

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.

Where do you stand if repossessed truck is sold for less then the loan?

You are responsible for the remaining balance of what the vehicle sells for and what you owed when it was repo'd.

Can you roll the balance of a carloan into a new car loan?

No, it most cases you cannot roll the balance of an existing car loan into a new car loan.

If you purchase a motorcycle through a delaership and get a loan from a bank then pay off the loan with a balance transfer to your own credit card bc the is less-who gets the title?

You get the title

What are paydowns?

Periodic payments against an outstanding loan balance that do not pay off the entire outstanding loan balance.

You want to know your loan balance?

ID 03361626150001 Ref:009104005000101 I want to know my loan balance. Cydronia

Can personal loan show as tax benefit?

Loans basically have no tax efffect. The loan is a trade of $ (or value) for the obligation/debt to pay it. Someone is worth not one penny more, or less, after borrowing money than before. Certainly SOMETIMES the expenses and the interest (the costs of the loan), can have a tax effect, most normally in a business situation.

What is plus mod balance in bank loan?

plus mod balance in bank loan is the money who pay on the bank that you loan with interest rate and original cost.

Can your driver's license be suspended for not paying the balance of a loan after the vehicle was repossessed?

No. Absolutely not. Your driver's license cannot be suspended for not paying a loan or the balance of a loan, repossessed or not even if you get threats from the loan company.

If your vehicle is repossessed but is worth far more than the unpaid balance of your loan when they auction it off will they pay you the remainder?

Laws says IF it brings more than you owe, you get the surplus. IF it brings less than you owe, you PAY the defiency.

How does a lender get a judgment against you for a loan when they repossess a car?

You owed more money than the car was worth and they wish to collect the balance.

What is the outstanding balance on a loan called?

The amount of the loan is called the principal.