Car dealer question.

[alhope34]

If someone were to trade in a car which they owe more than it is worth for a trade-in, would a dealership be likely to pay off the remainder of the finance after the trade-in value and add it to the finance of a used car even if they do in-house financing?

[WeatherB]

Yes. They will give you the option of either rolling the remaining balance into the new car or paying it upfront at delivery.

[PearlM3]

you will need to have pretty decent credit though. It's pretty easy to get a car loan because they put a lien on the car(use the car as collateral). But when you are rolling large amounts of extra on top of the price of the car, the loan then becomes less secure because you owe much more than the car is worth...ie...if you stopped making payments and the reposesed, they would not be able to recover enough to pay the loan off.

[cereal83]

Most dealers will do it so a certain point like 5% or 10% of the total value of the new car they are buying. $30k car, they will do up to $3000 etc