how does this work?

[pontifex]

I think i asked something similar to this before but I can't find it.
I'm currently paying car payments on a 2004 Saturn L300 that I got brand new. I have about 2-3 years left on it. I'd like to lower my payments and maybe get another brand of car.

I'm not sure how this works since I am still making payments for it. How does that work?
Could I even trade it in for a used car or even a used car at another company dealership, like Toyota? Would I be stupid for even trading it in for a used car?

I'd like to have lower payments and maybe even lower insurance. I'm also starting to get tired of the car.

 

[DAGTA]

You trade the car in for less than it's worth. The amount that is the difference in what you owe over what the dealer gives you is rolled into your new car loan. You're payments are not likely to go down unless you trade the car in for a car that costs less than your trade-in value... which no dealer is going to do.

 

[ElFenix]

they pay off your loan and add that to the loan they get you, if you owe more than it's worth.

if you owe less than it is worth, they pay off the loan and put whatever equity you have as your trade-in value.

 

[mfbf]

They make you an offer for your trade-in. That amount gets deducted from the selling price of the new car. They then add what you owe on the saturn to the price. Once a contract is signed, they will send the payout amount to the bank and receive the title so they can sell it. I don't think you would have a problem trading it in for another new or used car as long as the dealer makes their profit. Be warned that you will be financing not only the new car but the money differences on the amount owed minus the trade-in value (roughly, there is a tax break).

 

[her209]

Originally posted by: ElFenix
they pay off your loan and add that to the loan they get you

Don't you mean, "They offer to pay off your loan and at the same time, low ball you on the cars trade-in value"?

 

[jadinolf]

Originally posted by: her209

Originally posted by: ElFenix
they pay off your loan and add that to the loan they get you

Don't you mean, "They offer to pay off your loan and at the same time, low ball you on the cars trade-in value"?

Of course.