What most drivers do, however, is trade the car in for a new model on another pcp contract.
4+ Trading In A Car With Negative Equity
Pics. Since your costs will be higher when trading in a vehicle with negative equity, you. If you want to trade in your car for a newer one, the dealer should apply that $3,000 toward your down payment, thus reducing the overall amount you however, if your car's value was $18,000 and your loan payoff amount was $20,000, you'd have $2,000 in negative equity — you owe more on your car.
How To Trade In A Financed Vehicle 4 Things You Need To Know from www.birchwoodcredit.com
Just understand that you will still have negative equity because there are very few if any cars that you can roll $7000 into and stil have equity. Dealers may include the negative equity in consumers' new car loan. Read on to learn about your options.
What most drivers do, however, is trade the car in for a new model on another pcp contract.
The dealer will tell you that the trade in value is thousands of dollars to make you feel good. Let's use an example to illustrate the point. This means the difference between the new car value and its expected value at the end of the loan is less, leaving them in a better place. The dealer will often happily suggest rolling the negative equity into the loan for your next car.
