Car Buying
Auto Loans and Financing

How can you trade a car when you owe more than it is worth?


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Wiki User
2008-04-11 13:12:17
2008-04-11 13:12:17

You can't really trade it without staying in the hole. You can go to a car lot with about 8000.00 dollars and trade it but if your buying a new car that's 12995.00 and you trade a car you owe 9995.00 on they will just add the amount you owe minus what they give you for the car, which is usually nothing and the rest will be put on your new loan. You will owe 3 times as much as you did. The only way to not have the car is to let it go back, but agin that's a repo... I recently had to do that and just bought a car for cash. No car note..that's the best thing. The repo will hurt your credit, but as far as getting another car, you can after about a year and a half.


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You will get what they offer. You are always better off to sell your car at below retail and buy a car without a trade. The dealer will rarely give you more than wholesale for your trade in. Sell your car, and then go buy yourself a car. You have much more leverage when buying without a trade.

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Yes, of course. But the dealer will only do a trade this way if your car is worth much more than the car he is selling to you.

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Sure you can, but you will likely find you owe more than it's worth as a trade in.

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absolutely, if the dealer is willing to do it. It is two separate transactions, you selling the dealer your car and you buying the dealers car. Whether your tade is worth more or less the the purchased car means nothing to the dealer. they are making a sale and intend to do it again with your trade, just for more money.

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i THINK so if the other trader realy wants the other car in trade

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