What would you do in my delima regarding a new car and owing money on a trade in?

Question

i recently traded in my 01 tacoma for a smaller toyota yaris. i still owed 16000 on the truck and the trade in value was only 8250. i still owed 7750 which got added onto the price of my new car. my combined total for the new car was about 27,000 to finance. my bank would'nt even deal with me because the amount financed exceeds 20% of the cars value which is only 17,000. so toyota financed me and we wrote a contract. today i was told toyota cannot finance me because,like my bank, it is too much of a risk. i am in possession of the new car, they still have my truck...at least i hope they do, and i already have 1,000 miles on the new ride. i was told the only way it will work out for toyota to finance me is for me to put more money down which i dont have or for them to jack up my interest rate. what should i do? tell them to screw off because i already have a contract? what will happen if they want the car back with 1000 miles on it? make me pay for the wear and tear?

Answer 1

They will not make you pay for wear and tear - it is partially their fault for letting you leave the dealership until they were 100% sure that you were financed. My hubby has been in the car business for 5 years and this happens all the time! Either let them raise your interest rate or take the Yaris back. IF you let them raise your interest rate, then pay it on time every month without a beat and in a year or so, you should be able to refinance at a lower rate! Good Luck!

Also - most dealerships let their employees drive new cars as demos and they put WAY more than 1,000 miles on cars and they are still considered new.

Answer 2

You get screwed because its 'rolled' into the loan for your new car. After you do that a time or two, you're into what we call being "upside down" in that you owe more money on the car loan that the car is worth and will never be able to get out from under it. It's a BAD deal all the way around. If the car is at least worth $8K, and you OWE $5K, the dealer will NOT give you $8K for the car. They probably won't give you $5K because a car dealer has to BUY LOW and SELL HIGH to make money. You might not be upside down NOW on your current loan but you will be after you roll $5K owed on the car into the new loan (because the dealer 'pays' off the loan at $5K, then will probably try to sell the car for $8 or $9K, essentially getting their money back while sticking YOU with the difference!! SELL the car outright, pay OFF the loan and pocket the difference, then go buy the new car. And NO matter what they tell you, CAR deals are always out there. What you 'miss' today will come along later.

Answer 3

This is a common practice of car salesmen. The put you in the vehicle with the high hopes it will be financed. There is a term for it, but it evades me at the moment.

I would take their car back and get your truck. You are getting way in over your head buying and trading these vehicles . Drive your truck till it dies (hopefully it will be paid off first). Then get yourself a new vehicle.

I would say it is the dealer's loss on the 1000 miles you put on the new car. It was their mistake. If they don't see it that way just use the magic letters "BBB".

Answer 4

Shame on you you deserve the mess your in.

About all you can do is go back to the dealer & lay the cards on the table & hope for the best.

The best would be to get your old car back.

Once you by a car unless you have a large down payment you will always owe almost as much as the car is worth.

And once you drive a car away from the dealer the car can be worth less than you paid for it.

Answer 5

Here's a little piece of advice for the future: If you can't afford to pay for something all at once, YOU CAN'T AFFORD IT!!! Get rid of the car..sell it or turn it in to the dealership...whatever you have to do. Then buy yourself a used car that's about 10 years old. That's all you really need anyway. You'll spend less on repairs for an old car that you would in payments for a newer car, and you'll actually OWN what you're driving.

Answer 6

i went through the same thing with a 2002 ford truck i simply gave back the truck and the dealer gave me mine back it happens all the time, they can not hold you responsiblr foe mileage because they thought they could finance you or else they would not let you take the vehicle. make sure they give you everything back (your truck and any moneys(down payment)and the contract is void.

Answer 7

no, stop, i was a new/used car salesman for GM over 3 years just recently left. the dealer is the one who wrote you up on a toyota contract, the boss of my dealer was like that 'just write it up and well figure it out later' if they want the car they need to take it back and give you yours back free and clear. period. ive been the salesman in that situation and it sucks. tell them its their problem b/c you fulfulled your end of the deal. second of all...if you can get out of it...do it...all your doing is building up one ball of negative equity that will never end. sell it yourself ot try to do a lease on a vehicle with a higher msrp, vewhicles that are higher in price are able to 'hide' that negative you have....a lot of people hate leasing but for you it may be best....however the fact that you tacked 1000 miles on it maybe not...but if you can...i advice to get out of it if they want you to. find some sucker to buy your truck and eat the rest...

ok i had to write again, just get out of it, sure a a new car would be nice, but man toyotas are money pits..they arent worth anything when you want to get rid of it down the road. i hated seeing people in your situation, so a lot of people i would tell to find an alternative. this is your chance to get out of it free and clear...do it for real get your $$ back and your truck and run away.