Overhaulin'

Shopping for a used car and trading in a vehicle when shopping for a loan how do they factor in the old loan?

I just would like to know how to shop for a used car loan while owing money 2k-3k more than what its worth on the prospective trade in vehicle. I understand that this will be rolled into the new car loan but the vehicle is going to be traded in regardless. Any input would be greatly appreciated.

Public Comments

1. The dealer is going to totally ream you on this deal, as they are not going to offer you even close to what your car is worth on the market. This is not a Good idea. If you can keep your car running a few more years, you should do it. ONLY if you plan to keep the newer car for 15 years or so will you come out even or close to it. Depends on the interest rate.
2. The dealer will want to make about $3k profit on this car you need, and also $3k profit on the car you're trading in. That's why you just don't trade a used car for a used car at the dealer. Don't ever do that. So the dealer is going to be very happy. You won't be. Instead of $3k you're in the hole now, you're expecting them to put you $5k or $6k in the hole with nothing down, right? You are going to get killed on this deal, and the hole will be even deeper a year from now. It seems like there are a lot of people posting here lately things like. "I can't pay my bills, and I want to sell my car, but I owe $10,000 more than it's worth" . They usually play this game with new cars, though.