|
I'm going to guess your loan is not unsecured, this would mean that whomever financed your original loan will appear on your vehicles title. In order to sell the car and transfer the title you will need to pay the original loan off and get a lien release letter from the lender. If you trade the car in at a dealership they would satisfy the balance on the loan and most likely roll the remainder (if you are underwater) into the next vehicle payment.
In any situation, i would do all i could to avoid trading in the car and having the dealer pay off the balance. I would work with the lender to pay the car off as soon as possible and only then would i trade it in to the dealer. My guess is in your situation with the car you describe, you would do better on a trade in with a free and clean title. The dealer is doing you a favor when you trade a car in that is not paid off. They handle the headache of paying off the original loan and transferring the title, those services don't come free, you pay for it with a lower trade in value.
That's my opinion ...
|