Will a car dealer purchase my car if I still owe money on the car loan?

Will the car dealer still purchase my car if I owe money on it? I owe about $7,500 on a car loan, but I want to get a new vehicle.

Answer provided by
Eric Schad
Answered on Jun 29, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Unless you’re upside down on your car loan, the dealer will usually purchase it from you.
Essentially, they give you fair value for your car (trade-in value), then deduct that value from your loan balance.
If there’s still a balance left over, they’ll take that amount and roll it into the loan balance of your new car.”

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