Car trade in and current auto loan?

I am thinking about trading in my 2007 Corolla for another car. I didn't want to buy a 2008, I just wanted a new 2007 car. The cars I am looking at cost more than my Corolla(KBB price for the 07 Corolla CE is a high $14K), I wanted a car that has a little more speed and power. Now as far as financing is concered, can I stay with my current bank? Or when I trade it in, do I have to do a whole new credit application? I bought the car in June 2007 and I've been very good with the payments, and I was going to start shopping in May and do the trade in June again. My car is still in great condition as well. Can someone give me a quick run through of the process in %26quot;girly%26quot; terms?

Car trade in and current auto loan?

Unless you made a large down payment or had an expensive trade-in when you bought your Corolla, my guess is that you are upside down on your loan, meaning that you owe more than the car is worth. If you trade, the dealer will roll your negative equity into a new loan and your payments will be higher than you probably expect because you'll be essentially paying off two loans at the same time. You might be required to make a large down payment to offset the negative equity.

Yes, you can get a loan with the same bank, but they'll have to check your credit and get a new application. It's like starting over again. You can't just change vehicles on your old loan.

Honestly, your best bet is to simply stick with your current car until you can get out of your upside down situation -- assuming you are in an upside down situation.

Car trade in and current auto loan?

I have the exact same problem. I have an 06 Corolla CE and I want something a little nicer. Luckily I put down a good down payment so my car is worth more than I owe. If your in the same situation I would sell it yourself..you'll get more money. If you owe more than it's worth you'll proably have to trade it in and take the loss which will be rolled into your new loan. If you financed the car yourself (and not through the dealer) you should be able to use the same bank. Hopefully they give you the same interest rate or a better one than you had before. Call them and get the payoff amount and compare it to the value of your car. I would used Edmunds.com...KBB prices are always too high. Remember a dealer will only give you wholesale for your car...nothing more. You can get an extra 1500-2000$ selling it yourself. Get a Civic SI..that's what I'm getting.