Will a car dealership pay off the loan on my Ford F-250 if I trade it in for a new truck?

I want to trade in my old Ford F-250 for a new one. Will the dealership pay off my old loan? I have positive equity in my current truck.

Answer
The new Ford F-250s are looking pretty legit, so an upgrade isn’t a bad choice. As far as your car loan (or truck loan) is concerned, you shouldn’t have much trouble trading in your old F-250 due to your positive equity.
Because you have positive equity in the vehicle, the dealer will offer trade-in value for it. Then, they’ll either take that money and cut you a check (which is getting less popular) or they will pay off your loan. If they pay off the loan, you could potentially get the leftover proceeds.
When you have positive equity and you trade in your vehicle, car dealerships will try to hustle you a bit to add optional features (like tinted windows) to your new F-250. However, this money would be better used as a down payment or as the initial investment in an emergency fund.
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Eric Schad
Answered on Oct 20, 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.
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