When a registered dealer accepts a vehicle on trade and the trade-in has a lien larger than the agreed trade-in allowance (negative equity), how should this be handled?
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A
The dealer must refuse the trade-in since negative equity is not permitted under the MVDA
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B
The dealer must clearly disclose the negative equity to the customer and document how it will be handled in the contract
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C
The negative equity can be rolled into the new vehicle financing without disclosure
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D
The customer must independently pay the lien difference before trading in