Car loan question?? trade in?

Question

Im planning to buy a new car soon. I wanted to trade in my car but i still owe $3500 on it. the kbb value was $4000.

i have a blank check from capitalone that i wanted to use and im just wondering if the dealer will agree on paying the payoff amount and still use my blank check??

Answer 1

That's no problem. The dealer can arrange the whole thing. Is the trade in value 3500? You probably won't get the full value on the trade. The dealer will tell you you are getting full value but he will most likely charge you more for the new car. It's called overallowing. Here's another question. Why not keep your car? Does it still run okay? Why go into debt again? You'll have a much harder time getting and staying ahead if you sink all that dough into a vehicle. You can get a nice used car for 5 grand. You can get a great one for 8 or 10. One of the best ways to save yourself some money. How much did you pay for your car?
You also paid higher insurance and sales tax and DMV fees. What's it worth now? A lot less. Unless you can REALLY afford a new car it makes a lot more sense to buy a used one. Hope you don't mind my sticking my nose into your business. Do what you like, I was just making a suggestion.

Answer 2

When going to the dealership do not mention to him about the trade in. Work out your pricing first and get a solid answer. After you have finished with the pricing then tell him about the trade-in. We have a good friend that worked for a dealership and he told us never offer your trade-in up front because they just adjust the pricing to balance it out. I hope this helps you some.