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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.

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โˆ™ 2012-08-02 20:22:54
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Mav Div

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โˆ™ 2021-01-21 15:22:44

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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Q: Is there a way to trade in your car if you are upside-down on the car loan?
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because they were born that way baby


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?

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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.


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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.


Coverage on auto insurance when you have a car loan?

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Can you be arrested for car unpaid finance?

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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.

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