If I owe on my car about $7000 would a car lot refinance for new car?

Cierra Gadbaw: Your allowance, tradein, on your car will be low enough that the dealer can sell it and make a profit.You may only know the difference to buy a new car.That difference will include any amount over the tradein, which will allow them to pay off the existing note.Your principal amount will include that difference and you will finance the regular or negotiated price of the new car plus the difference in the tradin.Example.They give you a tradein of $5000.They can sell your car for $7000, a profit of $2000.They buy your car for $5000. (Pay it off)The new car cost $15000.They will finance $15000 plus 2000=$17000.If your car is worth less than $7000 on the lot, they give you less tradein, and finance more of the balance with the new car.There are other ways to confuse you.They can give you more for your car than it's worth and kick up the price of the new car.Rest assured, they will make a profit on the new car and on the resale of your used car. They only care ! that between the two, they make their desired profit in total.Up the used car, up the new car. Reduce the used car, reduce the the new car.You will never be able to understand their math....Show more

Cassey Hollinghurst: We need more information to help you. Which kind of car do you have and are you talking about having $7,000 of negative equity, or you have a car with a $7,000 payoff. If it's the latter, then you will have some sort of trade in value. Give us a few more details and we can better answer your question.

Ninfa Aronica: I doubt they would, but... if you go to a new dealership they will buy back that car in exchange of buying one of their newer cars..

Antone Youla: Oh, they'd love to sell you a new car and they'll take yours in on trade... some fuzzy math will leave you broke, though.Sell your car outright to a 3rd party and take the remainder after paying the note to the dealership for a downpayment.