Will The Existing Loan Value on Used Cars Affect Their Blue Book Value?

November 8, 2010

No, the existing loan values on used cars doesn't affect the car's blue book value. The blue book value of a car is determined by the Kelley Blue Book and involves rating the car based on its condition and its features. If someone wants to take a used car as a trade-in on another vehicle, this is one tool that dealers use to determine how much value to give it. However, if the car is not paid for and still has a loan on it, the dealer would have to pay off that loan before they could sell the car. That won’t actually affect the loan value for used cars, but the dealer is likely to subtract what you owe from that value and give you this price as a trade in price.