What happens to your current car loan when you get a new car?
Question by rjz17678: What happens to your current car loan when you get a new car?
My wife would like to get a new car. She currently has a 2005 Ford Escape, owes about 6500 on her current car. She likes the new Ford Edge's, if we get a new one would the dealer pay off the remainder of the old car loan?
Best answer:
Answer by igetayes
The loan will be paid off as part of the overall contract. Simply put if you owe 6500.00 and its worth 7500.00 your loan will get paid off and will show on contract you had 1k in equity ...On the other side if payoff is 6500.0 and its worth 5500.00 then you will carry over the negative equity on your new loan , either way your current loan will be paid off by dealer.
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