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What happens to your current car loan when you get a new car?

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Car Loan

My wife would like to get a new car. She currently has a 2005 Ford Escape, owes about 6500 on her current car. She emma stone pokies likes the new Ford Edge’s, if we get a new one would the dealer pay off the remainder of the old car loan?

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    It would depend on what you agree to do with the Escape. If you’re trading it in to the dealership on the Edge, then paying off the old loan would be part of the agreement you have with them if that’s what you need done. The loan on the Escape needs to be paid if you do trade it in, either by you or by the dealership though. So, for example, using round numbers, if you purchase the new vehicle for $20000 and the dealership gives you $10,000 for the trade-in, you would have a $10,000 difference between the two. After paying off the loan on the old vehicle you would need to get a loan on the new vehicle for $16,500 plus taxes and fees, less any downpayment you would put toward the purchase.

    Hope this helps.


    Ken in Concord, NC - Sep 06, 2012 | Reply

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