Please Help,New car Trade in loan question?

Question

If my auto-loan balance is 14,000 and the value of the vehicle is 11,000.00 and i'm trying to trade it in for a vehicle for about 20,000 what would be my best bet? Should i patiently wait till i catch up with the value of car and have some equity? Or if i trade it in and put some money down on the new car (* like 2000 maybe) will it work out the same?Please Advice. Thank you very much.

Answer 1

You have some pretty good answers here...

For one....ask yourself..DO YOU REALLY NEED TO change vehicles now?

I have seen TOO MANY times clients come in to my dealership and they trade in too early. They keep adding the difference into their new vehicle and then it comes to a point and time where you CAN NOT get out of your vehicle because no matter how you approach it you owe TOO MUCH. I have seen people bury 2-3 cars this way.

Putting down money is a great option to reduce the amount you have to "hide".

If you are someone that likes to change up their vehicles often (every 2-4 years)...for god's sake start LEASING...you will be a happoer person.

As one of the other answers here....I would try to sell my car PRIVATELY...you will always get more that way. Also when you do not have a trade in you can usually get a better deal on the new vehicle you are buying. generally when one dealer gives you more money for the car you are trading it usually is because they are taking it off the capital amount of the NEW vehicle you are buying....which means you could have paid that much less for your new car.

To make an already long story short.....you can wait...pay down somemore of your current vehicle.....or if you are like me...you want this new vehicle NOW.....I would try to sell it privately and then LEASE MY NEW VEHICLE....

Answer 2

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Answer 3

The last thing you want to do is trade the car in.If your going to put money down on another car,sell yours first and use the money to pay the balance the trade in will get much less return for you.The dealership will just lose the difference in the paperwork.Your in a much stronger position without a trade.On the next car don't take out a loan for more than 3 years.The interest on a loan over that doesn't allow you to pay enough principle to owe anything near the value of the car.If you can't swing a loan for 36 months look into a lease,or a used auto of the same year.

Answer 4

William gave your your options pretty clearly. If you have good credit, safeguard it and don't get in such a hurry that you move too quickly. My suggestion would be that you pay down what you owe on your present car, especially if it is running well and you don't need a new one.

Waiting a few months and paying down your balance is a wise idea. Remember that the instant you drive that new car off the show room floor, it's a used car (the same as what you just traded in!!) and the equity question is not as important as the balance that is still owed on the car.

Answer 5

you will probably never catch up so i would either ask them to roll the amount owed over to new loan or wait until you have more down payment.
prepare to keep your new car until75% of the loan term is paid before you try and trade it in-example- if you have a 48 month loan than pay on it for 36 months before trying to trade

Answer 6

If possible, I recommend waiting and paying down the "up side down equity". If not, then you could pay cash for the difference between trade in value and pay off. Lastly, and least desired, you could finance the imbalance in your new car load. These are the three priorities that I would exercise.

Answer 7

You're 3K in the hole right now. You're gonna have to pay off that first loan before anyone will finance you again. It's not cost effective to get into a new car at this time.

Answer 8

Whatever the difference is between the old car and the new one you will either be asked to put that amount down or if you are luvky they will roll it over into your new loan. It all depends on the dealer and your credit.