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What happens to your current car loan when you get a new car?

My wife would like to get a new car. She currently has a 2005 Ford Escape, owes about 6500 on her current car. She likes the new Ford Edge’s, if we get a new one would the dealer pay off the remainder of the old car loan?

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4 Responses to “What happens to your current car loan when you get a new car?”

  1. igetayes said :

    The loan will be paid off as part of the overall contract. Simply put if you owe 6500.00 and its worth 7500.00 your loan will get paid off and will show on contract you had 1k in equity …On the other side if payoff is 6500.0 and its worth 5500.00 then you will carry over the negative equity on your new loan , either way your current loan will be paid off by dealer.

  2. Ken in Concord, NC said :

    It would depend on what you agree to do with the Escape. If you’re trading it in to the dealership on the Edge, then paying off the old loan would be part of the agreement you have with them if that’s what you need done. The loan on the Escape needs to be paid if you do trade it in, either by you or by the dealership though. So, for example, using round numbers, if you purchase the new vehicle for $20000 and the dealership gives you $10,000 for the trade-in, you would have a $10,000 difference between the two. After paying off the loan on the old vehicle you would need to get a loan on the new vehicle for $16,500 plus taxes and fees, less any downpayment you would put toward the purchase.

    Hope this helps.


  3. Cute Cat Pictures said :

    Whether your wife has to pay off the balance she owed much likely depend on the market value of the present car.


    1. If market value for the 2005 Ford Escape is $4500, your wife has to pay off the difference she owed; meaning that she has to pay 6500 -4500 = 2000

    2. If the market value is $7500 then the profit is 7500 – 6500 = 1000

    If you would like to get some info on car just visit

  4. Mercy .A. Ward said :

    How are you doing?, i just read your post and i decided to give you an advice,pls if you want to get loan fund i want you to be very careful of those hoodlums that call them self loan lenders,they are all scam,all they want is your money and you will never receive anything from them,you need to be very very careful my friend and the reason i am telling you this is because i have fall a victim so many times and i have lost more than $7000 to those hooligans and i have promise myself never to trust anybody again until a very closed friend of my directed me to one Mrs Mary Hook and i was so happy that i was able to get loan from her after so many pains and tears i went through,and i must advice you that you should not contact anybody that will destroy your happy and feeling but if you must contact any body i will like to refer you to Mr Wilson and you can contact him via [email protected] is a very nice person and she help me even when i told her that i have bad credit score.
    contact her i know that she will help you and i want you to tell him that Mercy directed you to him.




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