What happens when you have negative equity in your car and you want to trade it in for a different vehicle?
I've been underwhelmed with my experience with a Volvo and I want to try out a different make and model, but my vehicle has neagtive equity. How would a trade-in work?
“Even if you have negative equity, you can still trade in your car most of the time. If possible, the best plan of action is to roll the negative equity into the new car loan. If that’s not possible, you should seriously reconsider the timing of your trade-in.
Without the ability to roll the balance left over from your old loan into a new loan, you’ll usually have to pay off the remaining balance in a lump sum. If you don’t have the cash for this, you may want to wait to purchase a new car and keep making payments until you have positive equity, or at least reach a breakeven point. “
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