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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.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
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.
If you’re worried about paying high insurance rates for your giant truck, just use
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