New car?

Question

So we’re thinking to upgrade from our Nissan Rogue to something with three rows of seats. We are planning to TTC this summer and will need something larger for three kids all in car seats/booster seats. 
Just wondering how the whole trading a car in and how the loans restructure-if at all. We have never traded in a car before and when I google this all I get are ads for car dealerships 🤪
Anyway, I know it’s kind of a dumb question but, when we trade in does the dealership pay off the loan on the trade in car and we just have the one loan on the new car?

Answer

In an ideal situation the current vehicle loan is completely satisfied or they actually give you more than you owe. 
If you owe say, $10,000 on your current car, and they say they can give you $9,000 but “roll that $ 1,000 into the new loan” you’d be in a negative equity situation. 
Negative equity would mean your new car would be financed for more than it’s value. That’s not good! 
If your current car loan won’t be covered, you should plan to have cash to makeup the difference. You really don’t ever want to have negative equity. It’s very hard to overcome. 
For your current situation I’d say keep the car that currently works and save extra each month for your future cars down payment. When you are pregnant plan to buy a car the month before you’re due. Imagine if it takes you 3 months to conceive and you buy a car in your 8th month. Even if you save $150/month for 11 months, that’s a down payment of $1650. That could be the difference between equity and negative equity. 
From someone who has never had negative equity, traded in several cars and my brother is a long time car salesman. 
I also suggest buying a car at the end of the month (it’s true they need to close deals at the end of a month). Also, January and February are pretty low sales months, so your negotiating will be more powerful. 😉

Answer

That’s actually pretty much how it works. We just traded our 2018 mustang (sad face!)  in last week. They gave us a quote for what it was worth, took the loan amount, and subtracted what they were giving us from the car, put whatever was left of the mustang loan on to the new one (we got a traverse). We didn’t put anything down but that’s not always the case; depending how much your owe on the trade in you may need to put something down.

Answer

They will pay off the loan, but roll it into your new car payment. 
Have a rogue myself, had a Durango. Miss my Durango like crazy

Answer

From what I understand your last loan gets attached to the new loan on the new car.

New car?

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