If you move forward with trading in your vehicle and rolling your existing auto loan balance into a new loan, ensure your original loan has been completely paid off and you don’t have any outstanding payments:
Find out which department at your existing lender can confirm that your old loan has been paid off once you’ve finalized the agreement for the new auto loan.
Wait one week and contact the old lender to check that your previous loan has been paid off.
If your old loan has not been paid off, contact your new lender to learn more. If, after reasonable efforts, your loan has still not been paid off, you can submit a complaint to the Federal Trade Commission
or the CFPB. You can also contact your state attorney general
.
Dealers occasionally have vehicle trade-in offers, and if the dealer promises to pay off your negative equity, make sure it’s not included in your new financing or your final loan contract. Before finalizing a loan, read the contract carefully, and don’t sign anything until you understand and are comfortable with the terms.