Lenders won't add old balance to new loan
Do I really have to pay off my old car, before I can buy a new one?
I owe $6,000 on my car. I want to get another vehicle for my household. Is it possible for me to do this without trading in the vehicle I still owe on? Will the dealer pay off the $6,000 and add it to the price of the new car?
If you can afford both payments, then no, you don't have to pay off your old car first. However, it sounds like you can't afford both, and nobody's going to pay off your old car for you. And it's highly unlikely nowadays that auto lenders would allow you to add what you owe on your old car to the amount borrowed for your new car --- even if that's been your experience in the past.
Here are this week's reader questions:
- Leasing companies bumping monthly payments
- Do I have to pay off my old car, before I can buy a new one?
- Can I sell my leased car?