A buyer can trade in a vehicle while making payments on it as the amount that is owed can be added to the new loan. This process is known as "rolling over" a loan and is quite a common practice at car dealerships.
Generally, a vehicle that is traded in to a dealer when money is still owed on it, the dealer pays off the balance due in lieu. For instance, if the owner owes $5,000 on an existing auto loan, and the dealer is offering $6,000 trade-in value, then the dealer would pay off the existing loan and then take $1,000 off the price of the new car being purchased.
However, if the dealer only offers $4,000 as a trade-in value on the vehicle, and the outstanding balance is $5,000, the dealer may still pay the $5,000 to the existing lender. The remaining $1,000 that didn't come from the trade-in amount will be added onto the new loan amount.
If the trade in value of the car is low, paying off the amount owed on the vehicle may be for the best. Keep the car and pay it off as scheduled, and then make a trade after sending off the final payment.Learn More
Although there is no official definition for high mileage, a vehicle with more than 100,000 miles would be considered a high-mileage vehicle. Some cars may be capable of reaching 200,000 miles or more.Full Answer >
Advantages of leasing a vehicle versus buying one include not having to finance a loan for the full price of the vehicle, as well as simplifying the trade-in process for a new vehicle, according to U.S. News & World Report. Leasing a vehicle also allows access to a new car every three years or so.Full Answer >
A straw purchase of a car means that the individual who actually buys the car is not the person who is going to use the vehicle. Straw purchasers are given the money to pay for cars and hand them over the to the real buyers after the transactions.Full Answer >
The official Kelley Blue Book value for a used truck is discovered by choosing a make, model and year of the vehicle. Narrow the search by type of vehicle; choose "Pickup" first if other information is not known. Different prices are given depending on the state of the truck, the mileage and features, and whether it is being sold by a dealer or a private party.Full Answer >