explain trading in
12-13-2005, 10:07 AM
#1
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explain trading in
whats happens of u trade in a car that you still owe money for? ive had a car for 2 years and its a 3 year plan so 1 year is left can i still trade in my car and get sum money off on a new purchase?
12-13-2005, 10:10 AM
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Do you owe more on the loan than the car is worth? If you owe more than it's worth then you will be tacking that negative equity onto your next vehicle. If the car is worth more then you currently owe on the loan then you will have positive equity to roll into the new car.
12-13-2005, 10:33 AM
#4
+1
i've done this before and the difference is simply rolled over into your new loan
as negative equity. one of the downsides of this is that if that amount is rolled
into your new loan you will be paying more interest over the period of the loan.
you may want to see if you can do a private sell of your car rather than do a
trade. dealers usually rape you on the trade to maximize their margin.
if you don't mind eating the loss then go for the trade. it's easier and usually
cleaner. when i did a trade in the past i considered a private sell but decided
to simply trade since it was easier and i could get into the new car sooner.
i've done this before and the difference is simply rolled over into your new loan
as negative equity. one of the downsides of this is that if that amount is rolled
into your new loan you will be paying more interest over the period of the loan.
you may want to see if you can do a private sell of your car rather than do a
trade. dealers usually rape you on the trade to maximize their margin.
if you don't mind eating the loss then go for the trade. it's easier and usually
cleaner. when i did a trade in the past i considered a private sell but decided
to simply trade since it was easier and i could get into the new car sooner.
12-13-2005, 10:39 AM
#5
It depends how much money you owe.
1. If I buy the car for $20,000, and you owe $5,000, I give you $15,000, and the bank $5,000. Now I own the car.
2. If I buy the car $20,000, and you owe $25,000, I give the bank $25,000. You give me the keys and you owe me $5,000.
1. If I buy the car for $20,000, and you owe $5,000, I give you $15,000, and the bank $5,000. Now I own the car.
2. If I buy the car $20,000, and you owe $25,000, I give the bank $25,000. You give me the keys and you owe me $5,000.
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12-13-2005, 10:53 AM
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Easiest way to find out is go to KBB or Edmunds and find out how much your car is worth (Trade in Value, not private party). Then find out how much you have left in your loan. If your original loan was a 3 year loan and you have paid 2 years of it, then you should be ok and have some money that would go to your new car.
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