auto

Lenders won't add old balance to new loan

q_v2.gifDo 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?
-- Dustyn

a_v2.gifIf 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?

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CAR & MONEY NEWSLETTER

Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.

advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

FTC targets deceptive car ads

The FTC has taken action against two car dealership chains for deceptively advertising the costs of buying and leasing cars.  ... Read more


Connect with us