How do car trade - ins work ?Im almost done paying for it.?
Okay i am currently paying off my car and i have about 6 months left till im done paying for it and its all mine.But i want to trade it in for a newer car not necessarily an '07'. Okay a few people alredy told me that its not a good idea they say just to finish paying it off and just get a down payment for a new one.Okay how does it work ? Cant i just trade it in or what else is involved when trading it in or as ive been told just to pay it off and then get a down payment for a newer one? I paid close two $17,000 and i owe less than $5,000.what can i do?If it helps i live in California.and its a 2000 jeep laredo 4x4
Buying & Selling - 7 Answers
Random Answers, Critics, Comments, Opinions :
1 :
keep it and drive it.. think how nice it will be to not have a car payment.. then you will discover the difference between owning a car, and being in the process of buying one... never trade in a car ...it is a total ripoff ! sell your old car outright if you feel you must have a newer one
2 :
This is the concept of "equity" If you really only have 6 months worth of payments left on it you probably have a "Positive" equity situation. This means that the car is worth more than is owed on the vehicle. If you owe 5000 on the car and the car is worth $10000, the by trading in the car you effectively put down 5000 dollars.
3 :
You can trade it in but if you owe more than its worth than the difference will be added on to the new loan. Let say you owe 5k but the dealership says its only worth 3k than the remaining 2k will be added to the new loan, so you will not only pay for the new car but you will also pay 2k on the old car. However if the car you owe 5k on is worth 7k than the remaining 2k will count as a down payment. remember dealer trade in values are lower than the market value and if you can find an independent buyer to buy your car you can usually get more money. My advice is to sell you car for what you owe on it and get a new one without having to worry about carrying any negative equity into the new loan.
4 :
You almost always do better to sell a car yourself, and then take the cash to put down as a down payment. But you can trade it in, as long as you consider the deal on the new car, as a whole. Dealers will sometimes offer you huge money on a trade-in to make you feel like you're getting a great deal, but then the difference is made up in the price charged for the new car. Negotiate these things separately. You can research the cost of new cars on the net, and car dealers are much more open to discussing price on the phone than they used to be. Get what you consider to be a good price on the car you want, and then negotiate the value of the trade-in. Good luck!
5 :
Whatever the dealer offers you an a trade-in he will add to the price of the car. When you begin your search for a newer car make no mention of a trade-in with the salesman and see what his best offer is wihout a trade-in...THEN and only then mention that you want to trade in your car. Watch his attitude (and the price) change! You're better off to sell your jeep to a private buyer and use that money towards a down payment.
6 :
I would do your homework before going to a dealership. Jeeps usually keep their values but depends on how many miles it has, what the interior/exterior condition is etc. I would start chunking down more money on it to pay it off sooner but if you really dont want to wait for it to be paid off go to nada.com and kbb.com and get trade in values from each on your specific car. Take those to the dealership with you. Also get an exact 10 day payoff amount from the lien holder and take that information also. Dont forget you can negotiate on what the dealer gives you for your trade. Call around and see if other dealers will match the trade. Try not to have negative equity rolled into the new loan if possible. If they wont give you enough for your trade try selling it by yourself. Hope this helps!!
7 :
The dealer will try to screw you to the wall! They ALL do! So, before you ever go in there, you need to know about what your car is worth retail, and what it is worth wholesale. You can go to Kelly Blue Book (under "Autos") and find it's approximate value. If you would like, send me your info (year, mileage, equipment, condition, pics, etc) and I can tell you it's approximate value Then, when you go to the dealer, you can simply subtract your cars value from the new car's price. This will give you the difference that you will have to pay. Of course, you will need to figure in your remaining loan. Again, they will try to dazzle you with numbers, but if you do your homework ahead, you can save literally thousands of dollars. tomcattin0@lycos.com
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