Need Dealer to Pay Off Auto Loan Before Buying New SUV

Q: Do you know of a dealer here in El Paso, TX that would have the “special” of paying off my loan to my vehicle so I can get a new car? An SUV with a 3rd row. Help me please!

Christian – El Paso, Texas

A: Many consumers don’t realize that trading in a vehicle for another one is actually two transactions happening at the same time. When a consumer goes into a dealership to trade-in and upgrade their transportation from a vehicle that has a balance or a loan pay-off, the dealership must first buy it and collect its title to be able to ultimately resell it (retail or wholesale).

There lies an important question. Is the trade-in vehicle worth more than the loan pay-off? In today’s financial environment the answer is typically NO. Therefore, this deficiency of the trade-in’s loan pay-off vs. what it’s worth needs to be satisfied or paid for in several ways. The consumer may elect to use cash down to offset that difference or with good credit ask that the dealer add the trade-in deficiency to the negotiated price of the newer vehicle that the consumer is buying.

Please understand that every situation is quite different and the newer vehicle’s loan value may determine the lender’s ultimate approval, as well as, the consumer’s credit, ability to pay the loan amount being asked for, job stability, and other factors that the lender may want the consumer to prove or verify.

There is a dealer in El Paso that may be able to assist you. Mack Massey Chrysler Jeep Dodge sells new and factory certified pre-owned cars. They have been in business for 50 years and have all the experience to assist you with your situation. Check out their Web site at or call them at 915-584-9393.

Agustin Vasquez Jr. – General Manager, Mack Massey Chrysler Jeep Dodge, El Paso, Texas