will used car places take new cars as trade ins?

Question

We just bought a 2006 susuki and I was wondering how much that would jack up the price of a used car if I trade it in. I really need to get my payments lowered.

Answer 1

maybe but if it in new to u then it will be used to them if it has been driven so yes i think they will

Answer 2

Hey the only reason to venture onto a car lot is with cash in hand and walk away from the first offer. It used to be possible for the salesman to make a pretty lump sum every 5 or so months but the dealers have it pretty much got it down to a formula that cuts it thin for the floor people. Thus, the little guys are ready to cook the numbers on the trade-ins.

You'll get smoked.

Answer 3

Yeah, they'll take almost anything in trade, but you'll lose your shorts trading in a new car. If you bought a car for $25,000.00 and put 1,000 miles on it and tried to trade it in, you'd be lucky to get much more than $15,000.00 - $17,000.00 on the trade-in allowance.

Once you drive the car off the new car dealer's lot, it's no longer a new car as far as the industry is concerned. It's a used car -- a vary nice one possibly-- but it's still a used car.

Since you are trying to lower your payments, you're not going to have any success here unless you trade for a MUCH older vehicle -- and even then, it may be impossible to put the deal together. Unfortunately, you are "upside down" on your loan. That simply means that the car is worth less than you owe on it. Let's look at an example, using that $25,000.00 price on the new car.

Let's say that you have a loan for $22,000.00 on the new ride. If you get lucky and get a $17,000.00 trade-in allowance, you'll still be in the hole for $5,000.00. If the numbers are right on the replacement vehicle, you might be able to add that $5,000.00 to the note on the replacement vehicle.

If you're looking at a $15,000.00 used car, you'd have to get financing for $20,000.00 to put the deal together. Few banks or lenders are going to lend $20,000.00 on a $15,000.00 used car! To do this, you'd have to come up with $4,000.00 to $5,000.00 in cash. Since you're buying a used car, the interest rate may be higher and the term may be shorter, leaving you with payments similar to what you are paying right now -- and with $4,000.00 less cash on hand to boot. You'd also now have a used car with much less warranty time left to run, if there's even any warranty at all!

You might be able to add $5,000.00 to a loan to clear the shortfall on a trade-in without putting up much cash, but you'd have to be buying a MUCH more expensive vehicle. If you traded for a $50,000.00 vehicle, there might be enough "wiggle room" to make it all work. Of course, your payments would double or worse in that case; that's not going to help you.

Sadly, you've learned a hard lesson. Crunch the numbers BEFORE you buy to make sure that you will be able to afford the payments on ANY financed purchase.

Most likely, you're going to have to suck up and live with the payments for 3 or more years before you'll be in a position to trade without losing your shorts. You've compounded the problem by purchasing a vehicle that depreciates much more quickly than average. Next time, do your homework and you'll avoid putting yourself in this situation.

Answer 4

well, how are u gonna do that? i mean, u have to drive the new car to the used car place so therefore it is used and may be accepted as a trade-in