What happens to my loan if I trade in my vehicle?

When a customer trades in a vehicle with an existing loan through Ford Motor Credit, several factors come into play that affect the loan and the overall transaction. The trade-in process often begins with determining the market value of the vehicle being traded. This value can be applied toward the balance remaining on the loan. If the trade-in value is higher than the loan balance, the customer may receive credit towards their next vehicle purchase or lease. However, if the trade-in value is less than the amount owed on the loan, this situation is often referred to as being "underwater" on the loan. In this case, the remaining balance will need to be settled, which may involve rolling the negative equity into the new loan for the replacement vehicle. It is important to consider the overall impact of this decision on future monthly payments and loan terms. Customers should also review their financial situation and financing options available through Ford Motor Credit, as this may influence their next steps. For specific details, it is advisable to check the current website, where more information can be found regarding the process and what to expect when trading in a vehicle.