“We’ll pay off your loan no matter how much you owe.”
Have you seen auto sales ads, often online, that promise this? This promise to pay off the balance of any loan you have on a vehicle you plan to trade-in is often misleading, the Federal Trade Commission warns in a recent alert. Why? Many people owe more on the trade-in vehicle than it is worth. This is called “negative equity” or being “upside down” in the loan.