Trading a car in for another...???

I own a 2007 car worth $20K. I owe $19K. What would happen if I wanted to trade it for a cheaper car? What happens with the loan?

Trading a car in for another...???

The dealer will probably offer you about 12 or 13 K for it and add the balance to your NEW loan, or swap for an older piece of junk that is worn out.

BAD IDEA. You will get %26quot;had%26quot; and will NOT get kissed.

Trading a car in for another...???

Some dealerships will pay off what you owe on the car at the time of the trade. You would have to check to verify this information though.

Trading a car in for another...???

It depends on what the dealer offers you. Most of the time if they need to get rid of inventory they will pay off your total balance and then you finance the other vehicle.

Trading a car in for another...???

What makes you think it's worth $20k? Because that's what you paid for it? New cars depreciate the most in the first year. If you paid $20k for a new car last year, you'd be lucky to get $16k today.