Overhaulin'

How does it work wehn a car company says they will get you out of your current car/loan and into a new car?

just caurios because i want a new car but currently have a lein on it. just curious because i want a new car but if i trade it i will have a lein on it.

Public Comments

1. When they offer to pay off your loan that is what they do. They pay it and get the title and then sell your "old" car.
2. ok the dealer will give you what your trade is worth wholesale value.....and the rest will be tacked on to your current purchase and they will get you into a new car
3. They're not really getting you out of anything. Say you've decided to buy a new car, and the total loan amount ends up being $20,000. The trade in value of your old car is $10,000, but you still owe $12,000 ( a common occurrence). They will take you old car, credit you the $10,000, then add the extra $2,000 onto your loan, so your new loan is now for $22,000. For many people, this type of situation will result in them having even higher payments than before, and now they are further behind than in their previous loan since their loan is for more than the purchase price of the car. The only time this works out for the consumer is if you have paid down your car loan enough that you owe less than it's trade-in value.
4. they will take your car in trade on another one and what the difference is between what you still owe and what they will give you for a trade and that amount will be added to your new car. example: your car worth 10,000 on a trade and you owe 13,000, they will add the 3,000 difference on to your new car ex. again new car 25,000 now will be 28,000, that you will have to pay for the new one. best advice is to look in kelly blue book or edmunds.com and they will tell you waht your car is worth on trade and also will give you the price you should pay for the new one, otherwise the dealer will charge you sticker prxie for the new one and give you the lowest possible trade value for your old one, therefore you;ll end up paying far more than you should. do some home work before you do it and could save lots of money.
5. Usually, you will get screwed somehow.