How does this work out?

I see people that buy a new car, but then after a few months they dont want it anymore, so they go get a new one. How do they get the new one by getting rid of the other one that they havnt fully paid it yet?How does this work out?
I agree with Jono because I tried something like thatHow does this work out?
The dealership can agree to take over paying for the cars loan, if they buy a new one from them.
2 possibilities: A. stupidity B. lots of extra money.


buy a car for $25,000 add tax and title, finance for 60 months at 5.9% with nothing down. $512 a month for 12 months paid $6144 to finance company. Only $4,584 went to principal subtract that from $26,500 (remember tax and title). So one year later you owe $21,916.00 on your $25,000 car.





You trade it in and dealer says ';dude you've got a little negative equity problem but I think we can work something out';. He offers you $18,000 for yours and sells you another one for $25,000.





You have a new car, same as before, only now you owe:


$30,416 and your payment is $587 for another 60 months.





Dealer ';but dude, it's only $70 more a month, and this is the car you really want right. Thats one night out of the month that you stay home. It's only like $2 a day.........................';





You ';Ok';





Go in one year later and no one at that dealership will even talk to you unless you've got $6,000 or $7,000 in your pocket





You are what is referred to as burried
trade in, they loose alittle if they do it every year or it could be a lease
trade in


the dealer pays off the loan and the numbers work out on the new loan


half of the new car buyers with trade in have a pay off amount


some of those are even upside down - which means they owe more than the trade in car is worth. Car dealer finance people know how to work it out - to their benefit for sure