If you owe $29K on a car but you want to purchase a car that is lower priced, say $24K what happens? Do they tack on the balance minus your trade-in value? Anyone do this? What happen?
2006-10-30 06:20:12 · 6 answers · asked by leadway 1 in Cars & Transportation ➔ Buying & Selling
Okay, here's how it works in the USA.
Example: You owe $29K. You buy a car for $24K and get $26K trade in on the old car. You plan to finance the purchase of the new car. So, you will finance $24K plus $3K ($29K - $26K) for your new loan.
Make sense?
2006-10-30 06:27:55 · answer #1 · answered by kja63 7 · 0⤊ 0⤋
discover out how lots your Explorer is properly worth and then discover out how lots you owe on it. no depend if that's not properly worth as much as you owe, you should make a determination. in case you commerce it in, then the recent own loan would be "packed" this ability which you owe extra on the recent vehicle than it even might sell for interior the 1st place. If it is the form you bypass, verify you get perfect dollar for the Explorer if in any respect a danger. then you definitely ought to purchase hollow coverage. hollow coverage will pay the version between what you owe on your new vehicle and the quantity the coverage organisation will pay if it gets totalled. in case you opt for to no longer commerce interior the explorer, attempt to refinance it for a extra effective fee. try a community credit union, they have sturdy costs and frequently loans are approved by way of a committee. 9% is lots too intense. A Mercedes is an attractive vehicle, yet once you're interest fee is 9%, i'm guessing that that's merely too lots vehicle so which you would be able to attend to perfect now. Champagne style / beer funds? i do no longer be responsive to your economic undertaking perfect now, yet as quickly as I had to wager and furnish suggestion....get a low priced new vehicle, build your credit by way of making well timed money, and take the version ($450 minus your new vehicle fee) and economic employer it. in case you are able to not sustain this distinction, you be responsive to you made the applicable decision. in case you are able to, in a pair years, you will have the flexibility to attend to to pay for that Mercedes with no $500.00 a month fee when you consider which you're interest fee would be decrease and you have got an incredible downpayment. delay gratification and you will attain your targets.
2016-12-08 23:55:03 · answer #2 · answered by claypoole 4 · 0⤊ 0⤋
You get trade in value for your car, if itsa more than you owe, you get a check for the difference, if the trade in value is less than what you owe, then the balance goes on the new loan
2006-10-30 06:22:47 · answer #3 · answered by scottb03gt 4 · 0⤊ 0⤋
just because you have 29 left on your car doesnt not mean that you are going to get 29 for it, you will get offerd, most of the time 23
so you will still have to spend 1K
2006-10-30 06:35:26 · answer #4 · answered by bkbarile 5 · 0⤊ 0⤋
It means you made a bad deal. The other guy feels great, though.
2006-10-30 06:32:22 · answer #5 · answered by Borat2® 4 · 0⤊ 0⤋
You eat what you have on the payments.
2006-11-01 14:01:18 · answer #6 · answered by George K 6 · 0⤊ 0⤋