Don’t Trade In A Car You Owe Money On, Unless….
It is quite common for people buying a new car to trade in their old car. Many times the happy customer drives away into the sunset and forgets all about this tiny detail only to get a very rude awakening a few weeks later. They suddenly find out that their new car dealer did not pay off their car loan in a couple of days as promised.
Legally when the bank calls, the loan is still in your name and you are therefore still liable and responsible.
The new car buying tip here that you really need to remember and enforce at all times, no matter how much you trust the car dealer, is to make sure that the car dealer puts everything in writing. If they can not put it in writing then you should not under any circumstances whatsoever make the deal.
