Trading in a car that you still owe on is absolutely doable when buying a new car #dealership #carbuying #carbuyingtips #newcar

I'm looking to trade my car in, but I still have money on it. That's super easy. Listen, we deal with that all the time, but what happens to the pay off of my car? Listen, there's a couple things that can happen. One, your car is going to get paid off if you trade it in if there's a pay off on it, but it's going to be done in one of two ways. One, either your car's worth more than what the pay off on it is, and that equity in your car pays that off, or number two, is your car's worth less than what you owe on it. And that additional negative equity that you're now having on that car, it's going to roll into your new loan, and because that's rolling into your new loan, that money's then used to pay off your last loan. Okay, that makes sense, but what if I don't want to roll it into my next car? Well, that's super easy, so let's just say that you owe $12,000 in your car's worth 10. You'd have $2,000 worth of roll over in the next car. The easiest way to get rid of that, so that you're not rolling into the next car, is put at least $2,000 down, that covers that remainder, and now you're just back to the balance of the original car. So if I trade my car regardless, it gets paid off, but if I put more money down, it's going to be better for me. Yeah, that's exactly it.