I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing

Most auto loans are simple interest, which mean you pay more interest than principal for the first half of the loan. Your balance will increase every day pay the monthly per-Diem %26lt;except for 0%%26gt; If you are in an equity situation, this means that you have the option of selling the vehicle yourself private party. You will have to decide whether or not it%26#039;s worth it.

There are some cases where if your trade is an odd car, or out of season, it might be better to take the reduced offer from the dealership rather than spend months trying to sell the car yourself because in addition to the second monthly payment, you will also have to keep full coveregae insurance on both cars. I hope this helps and good luck!

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

They will make you a trade-in offer based on condition, mileage, etc of your car. Then they will subtract (or add back in) the amount of your payoff for your car.

They may lead you to believe they are paying off your car, but they never do anything for FREE. It is all worked back into the amount of your purchase on a newer car.

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

When you trade in a car with a balance the dealer pays off the balance to the finance company, and takes that amount out of the value of the trade in. They apply the remained towards the down payment.

For example, if you owe $5,000 on a car with a $7,000 trade in value, you%26#039;ll get $2,000 towards your down payment.

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

I did the same thing with my car last year. They take what the car is worth (remember dealerships usually give you less than what the car is worth so they can make a profit) and subtract that from what you owe on the car and whatever is left over they use as a down payment for your new car and if you owe more on it than it%26#039;s worth they add that to the price of the new car.

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

YES, ITS A GOOD THING BUT YOU WILL STILL GET HAMMERED BY THE DEALER AND LIKELY LOOSE MONEY.

TRY AND SELL IT OUTRIGHT THEN TALK WITH THE DEALER.

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

If your car is worth more than what you owe, you should sell it yourself and get more money than the dealer will give you in a trade-in. A dealer will just take what you owe on the car and roll that into your new loan on your new car and give you less than wholesale for your trade-in car.

How do you know that your car is worth more than what you owe? If you are using KBB, be careful because you will not get retail for it ever- private party is more than trade-in and trade-in will never be what you think it is worth.

I just wrote about being upside down on a car loan this morning.

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

Are you basing the value of the car on an actual offer from a dealer or are you using one of those online price guides like KBB or Edmunds to determine the value.

The reason I ask is those guides are not based on reality.

If a dealer makes you an offer on your trade (never tell him your payoff until AFTER the offer) and it comes in higher than your payoff, the balance will be treated like a cash down payment, lowing the overall price of the new car.

I have a car trade in and I still owe $ on it. The value is more than what I owe. How does financing work?

When you trade in your old car and finance the new car, there will be a trade off balance. The dealership will pay off the loan for you and apply the remainder to the new car that you are financing. It%26#039;s really easy and dealerships do it all the time. In fact, if people owe money on their car, it usually would be more than the value, so your in a good place.