When you trade in a car with negative equity, your loan balance is higher than the actual cash value of your vehicle. First, your dealer will pay off part of the loan with the value of the car. The remaining balance on the loan is then yours to pay out of pocket, or you can roll the leftover amount into your new loan.
Keep in mind that the rollover will put you heavily upside down on your new loan for a while—but you’ll be able to get the truck you want. To reduce your balance quickly, you might consider doubling up on payments or paying extra lump-sum payments every so often.
The final thing to remember is that you’ll need to transfer your car insurance over to the new truck. Before you do this, be sure to compare quotes with
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