I bought a car and Im not sure if I did the right thing......?

Question

I've been thinking of trading in my 98 Sebring{which I owe $700-} for awhile-and yesterday I was at the dealership and now I will own a new (06 Ford 4wd escape that I pick up thursday..Well the dealership claimed in there ad $3500 for any trade in- not exactley true. I had no down payment and on the finance work sheet he said he had to put in 4477 down so the bank would approve the loan? The total price of the car was different than listed in the paper-($3500 added to 14,799)anyway the 06 Escape has 7,741 miles has 2 years maufacture warranty and my payment will be 342.10! I have no idea about dealerships or what I should look out for-any suggestions or does this look like a bad deal? Thanks!

Answer 1

What they are doing is adding that $3500 back into the sale price of the car, and showing an added $3500 onto your trade. Looks like they are giving you less than a $1000 for your trade.

What you need to do is find out:
1. What you can buy the car for without your trade. Tell them you are going to sell your car to a friend, and just need the numbers without the trade.

2. Once you have the true sales price, then get the true number for your trade-in. Tell them the friend backed out or something.

Dealers can play with numbers to show the banks more cash down than there really is, and it can be confusing to the customer, but any good dealer or F&I Manager will break the numbers down to you.

Remember, you do not own the vehicle until you sign the contract, so don't feel rushed to do anything.

Answer 2

All the dealer did was basically say that they gave you $5177 for the 98 (this is the 4477down plus the 700 they paid off the old loan with to get a clear title on the 98 so they can resell it). The banks like to see that you put something in to the purchase so by making the escape sound more expensive they feel safer.(they would rather have a $14,799 loan on a $18,299 vehicle than one that is only worth $14,799.) If you want to know for sure whether you got a good deal or not go to www.kbb.com this site can tell you what the blue book is on the 06 and the wholesale value of the 98 is(wholesale is what the dealer will typically give you on your trade.) You need to know the options on the cars to get an accurate price. This does not seem like a good deal. Dealers are very good a getting people excited and signing without thinking it through.

Answer 3

When a dealership advertises a price they HAVE to honor the price. Manufacturing down payments is against the law (in your case adding 3500 to the price of the vehicle then deducting 3500 in down payment that you didn't make). The other down side to that is extra taxes and extra DMV fees you have to pay.

I would avoid this dealership, do you want to do business with a dealership that plays games with you?

If you stil want the car I would go to your bank or credit union and see if you can get a loan outside of the dealership. Then I would go back to the dealership and tell them you want the vehicle at the advertised price. Then I would ask how much they will take for your trade.

P.S. You don't own the car until you drive it off the lot, even if you signed the contract. You can still back out of the loan.

Answer 4

I don't know the ins and outs of car dealerships. You really should look around a bit to see how it compares with what you might get from other dealerships. Also, if you have the option, I would go for a new car - maybe one with fewer whistles and bells. That way you know you're not buying someone else's problems and you have the full warranty.

Another thought. An '06 with only 7,741 miles might have been a rental car. You really should avoid those because you never know what kind of things were done by the drivers.

Answer 5

The easiest way to sort this out: First, get all of the specifics on both vehicles (engine, transmission, options, mileage). Second, got to www.edmunds.com. There you will be able to get an estimate of the wholesale or tradein value of your vehicle. You will also be able to get an estimate of the retail value of the vehicle that you bought.
Third, from the retail value of the new one, subtract the value of the trade in, then add in the $700 that you owe.
Fourth, that gives you the financed amount. You then have to determine the interest rate and the number of years of the loan.
Fifth, you will have to access Amortization Tables to determine what your monthly payments amount in paying off the principal.

For example, a $342 monthly payment can work out a $17,600 loan financed for five years.

If I can clarify anything for you, my email address is [e-mail]

Answer 6

you don't say how many months this is for multiply your payment by the month and see if you like the new car that much. you would be far better off paying your car off and save 342.00 dollars every month towards a down payment. you would get a much better loan with less payments.

Answer 7

yeah i think theres something wrong there too....make sure you BRING A MALE FRIEND OR RELATIVE WITH YOU and have a talk with the dealer in question....ask for paperwork from your dealer and photocopies of everything you signed....
if they havent explained everything to you .......you say its only recent that youve made this purchase?,,,,,i remember on my contract there mentioned something about a cooling off period,,,ask about it ,,,make sure you read everything..

i bought my first car 2 years ago, had troubles with brand new car....talked to management and ended up 6month later getting my full money back.....after repeatedly annoying them until they gave in..

follow your gut...if step one fails,, try fairtrading
good luck and congratulations!

Answer 8

id say you lost about 5 to 7 thousand the second you drove off the lot.... you need help figering finances.

Answer 9

Yeah. Pretty much, anytime you buy a new car, you're going to get screwed.