hey all im wanting to trade in my 2004 dakota. i am financing with a dealership now how would i do this. like would i have to pay off this loan with the dealership or can i only go through this dealership or can i not even trade in since i am still financing

 

Two options as far as I know
1) trade in, take out a new loan for the new vehicle plus the differnce between what you owe and what they will give you.
2)Take out a loan for the new vehicle and sell yours privately, you will have to pay out the existing loan before the chattle ( lean is released).

 

ok i still owe like 17k so lets say they will accept a trade in plus 5k so id have ot take out another loan for 22k??

 

how much are they offering you on trade in???

 

I was offer 9.5 K for my 03 Dakota ( 4.7 l , 4x4 sport, cold air kit, billet, tonnau, nerf bars 103Km or 60k miles and still under warranty) asked what he would sell it for- 115K. Ok this is Canada where our pices are inflated. You indicated you still owe 17K, were they going to rape you?

 

when you trade your dakota in, they will give you a certain amount, lets say they give you 10959.00, and you owe 17000.00. when you buy your new vehicle, the 6041.00 will be added on to your next vehicles price and this is called negative equity. so lets say you buy another truck for 22000.00, your new loan amount would be for 28041.00 + taxes. if this new vehicle is a used car, you will probably have a higher interest rate because of the negative equity, but if you buy a new vehicle alot of the time there are set interest rates.

also you can trade it anywhere but the new dealership will pay off the remaining balance of your old vehicle. thats why it gets added to the new loan amount. hope this helps, any more questions let me know, i work at a car dealership.

 

i used to work for a dealership so this is how it works. you take what you owe, subtract what they will give you. in your case it sounds like you will have negitive equity (upside down) so they take that amount and have to roll it into your new loan. if they give you 7k than you would be 10k upside down so the new loan would look like this... 10k negative equity + the cost of the new vehicle (lets say something like 20k) - down payment (say 5k) then you would be looking at 25k + taxes +title/dealer fees.
pm me if you have any other questions, as i should be able to help you out.