Can I trade in a GMC Sierra with a blown engine if I still owe money on it?
"I owe about $7,500 on a GMC Sierra. The engine blew out last week, and now I have no way to get to work.
Can I trade this vehicle in even if I still owe money on it?"
“You owe $7,500 on a car that would probably cost about the same to fix the engine. In that regard, dealers probably don’t want the vehicle.
If you want to sell the car, do so privately. You might be able to get a little bit more than scrap value for it, but, even then, it’s not going to be much more than $500. Even if you applied that amount to the loan, you still owe $7,000 to the lender.
In this case, you’re going to have to make a hard choice. If, and that’s a big if, you can get a lender to take on the remaining balance and roll it into a new car loan, you’re severely upside-down to the point where you might never break even.
You might want to find a cheap, reliable car for a few thousand dollars cash and pay off the remaining $7,000 in the meantime.
If that’s not an option right now, start saving and take public transportation or try to borrow a car from a family member.”
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