The car was priced at $16,500. With a trade-in, the loan came to $22,000. to refuse to cover the whole balance left on the loan? I will be meeting with the loan officer next week to discuss payment.
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When you trade in a car that still has a loan balance you will be responsible for paying off the loan balance that remains on the loan. The following information will explain what happens to a loan when you trade in a car, what it means to you and what you can do to reduce the impact.
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Loan amount is based on the net purchase price of the vehicle (plus sales tax) or the vehicle price less any cash rebate, trade-in or down payment. If you have an outstanding balance on the vehicle you trade-in, that amount is added to the price of the vehicle you are purchasing. Use this calculator to find out how much your car payment will be.
The typical person takes nearly six years to pay off their car loan – and nearly a third of them trade in their vehicle before they. advocates caution that you’ll want to pull out your calculator.