Trading In A Car With Negative Equity

Negative Equity Auto

Negative Equity Auto


You have negative equity of $3,000, which must be paid if you want to trade-in your vehicle. If the dealer promises to pay off this $3,000, it should not be included in your new loan. Nevertheless, some dealers add the $3,000 to the loan for your new car, deduct the amount from your down payment, or do both..If, at that moment, you decide to trade in this car and buy a new one, you will have to pay the price of the new car plus the $5,000 you owe on the current car. Your monthly payments will be much higher because you 're rolling over what you owe on your old car to the loan on your new one. Now you 're really upside down..



Some car dealers advertise that when you trade in one vehicle to buy another, they will pay off the balance of your loan no matter how much you owe..Auto loan calculator: Use this auto loan calculator to figure your monthly auto loan payment, show the impact of extra payments and create an amortization table . At Auto Credit Express, we recommend that consumers should never trade their car in, and buy a new car, if they have negative equity.. I desperately need a new car, the one that I have is becoming an unreliable money pit. Come to find out the transmission is shot on the trade..



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