Don't buy a new car if you haven't paid off your old one unless you have equity accumulated. One common practice at dealerships is to offer to roll the balance of an existing loan into the financing for a new car. It usually creates a situation where you are taking a loan that is greater than the value of the car you are buying. While this makes it easy to leave the car lot with a sparkling new car, it's a bad practice for consumers and a financial boon for dealers and lenders. Anything that is good for them, is usually bad for you.
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