According to Auto Credit Express, a car owner can trade in a vehicle even if he still owes on it. The dealer asks for the pay-off amount on the auto. If the payoff is less than the car value, then the difference is normally applied to a new car purchase.Know More
The old car debt can be paid off by the dealer when the new car is purchased. However, if the payoff amount is more than the value of the car, or if the purchaser is upside down on the old car loan, then purchasing a new car becomes risky says Auto Credit Express. Either the purchaser must pay the amount that is owed out-of-pocket or roll over the debt into a new loan.
Freecreditscore.com warns that the payments on an old car loan do not magically disappear if a buyer plans to trade in his old car and purchase a new one. The remaining balance still needs to be paid, by the car owner, car dealer or a bank loan.Learn more about Credit & Lending
A consumer can sell a car if they still owe money on it, but the balance must be paid in full to release any liens against the title. That's why car owners always want to sell a car for at least as much as the balance of the loan.Full Answer >
Getting a car loan after bankruptcy is possible by looking for bankruptcy car loan dealers and seeking good deals. You can also get secured car loans if you have collateral that can be attached to the loan.Full Answer >
Having a vehicle repossessed does not remove the borrower's obligation for the loan. Once the lender repossesses the vehicle and sells it at auction, the finance company also has the right to sue the borrower for the remaining balance on the loan. This balance is called the deficiency balance, according to Nolo.com.Full Answer >
A consumer can get out of a car loan by selling the car, refinancing, negotiating a new contract or turning the car over to the lender, according to Bankrate. A consumer who is willing to give up a car can consider allowing a friend or family member to take it and assume the loan, which requires approval from the lender.Full Answer >