I am going to be trading my 02 grand am gt in for a 06 malibu LT. They are giving me 4950 for my car and all I owe left on my car is a little less then 8,000. The thing is they are taking the 4,950 off of the car price and then adding back 8,000 to my car price. The question I have is they are not giving me anything for my car they are tacking back on what they are giving me with the 8,000. I think they should be only tacking on 3,050. Help im so confused.
2007-01-23 14:29:50 · 11 answers · asked by ? 4 in Cars & Transportation ➔ Buying & Selling
Get ready. You are about to get screwed.
Mistake 1: Never tell your salesperson you are trading in. You have just identified yourself as a sucker.
Mistake 2: Always know how much your car is worth before you consider selling it. Your 02 Grand AM GT is worth at least $1,000 more than you are getting, and probably more if it has options or is in good shape.
Mistake 3: Don't buy American for a while. This isn't a good vintage. American cars are, in nearly all respects, inferior to Japanese or German cars. You CAN trade in a Pontiac at a Toyota or Honda dealership.
Advice: Buy a Honda or Toyota or Nissan or Subaru or VW, or even (God forgive me) a Hyundai. Have a male, aged 30-50 accompany you to the dearership. Get financing approved in advance from your bank, and get a cash price from the dealer. Then call all other dealers in your area and let them bid based on the same options. Then, list your car on www.craigslist.com for the blue book, private party sale price. Then, if it doesn't sell, trade it in, with the sale based on the cash price, not some jacked up price the dealer made based on you being a sucker.
2007-01-23 16:43:12 · answer #1 · answered by slthrelk 2 · 0⤊ 0⤋
They are right if they are taking the price of the new car, subtracting your trade of 4950, and then adding the payoff back. The reason it's done this way is because you are paying tax on the difference between the two cars, the payoff is not taxed. Also, keep in mind, the payoff has nothing to do with the value of your car, it would be worth the same whether you owed 10,000 or 1,000. If you're still not sure, have someone at the dealership explain it to you till you are satisfied. Good luck and enjoy the new car.
2007-01-23 14:55:44 · answer #2 · answered by justcurious 6 · 1⤊ 0⤋
according to what you just said they are only tacking on 3,050. They are taking the 4950 off the loan because that is like a down payment, but you still owe 8,000 so they add that to the final price. In turn it is 3,050 more, the difference between what you owe and the trade in value.
2007-01-23 14:38:39 · answer #3 · answered by dbrisk 2 · 0⤊ 0⤋
I would not make that deal unless you have the extra cash laying around to make the payoff on the grand am. You will be upside down and then in a few years when you want to get rid of the Malibu you will be even more upside down. It's a never ending battle.
2007-01-23 15:00:45 · answer #4 · answered by Jeremy G 4 · 0⤊ 0⤋
A good salesman's first question is, "Do you have a trade in?" If you do, they are going to pencil whip you. They will try to trade you out by adding some profit of the car to what little they offered. You may try another. Tell them you want their best CASH price. Then ask what they will give for your trade in. That way you know what the car can be bought for and what they are truly offering you for your car.
2007-01-23 14:38:32 · answer #5 · answered by Anonymous · 0⤊ 1⤋
if you trade in the car now you will be upside down meaning you will owe money on a car that you don't have anymore while paying for a new car. pay it off and then trade it in if you want.
they always find a way to add the cost of the trade-in back into the new car price this way, they get your car for free and you feel like you got a deal.
2007-01-23 14:37:33 · answer #6 · answered by morequestions 5 · 0⤊ 1⤋
Sounds fishy... but when you hand someone a *signed* title of ownership, you are in effect giving them your car. Happy that you did not sign, but this is still not safe... aside from them not giving you the funds for the trade, they can still work w/DMV to transfer ownership etc... maybe through a lien. Please be direct with them, you want your money... the dealership owes you, and who's to say what the story is going to be in 25 days?
2016-05-24 02:51:27 · answer #7 · answered by Anonymous · 0⤊ 0⤋
first off, dont buy a malibu. theyre not the best of cars. Go get something japanese made. itll last you much longer, and will depreciate much less. I dont care if you have your heart set on it, or its pretty, or whatever. Notice how youre getting a whopping 5 grand for your less than 5 year old car. Thats terrible depreciation. get something that wont stick you into a financial hole. And seriously, Dont buy a freakin new car if you havent even paid off the old one. sell it for something you can afford. and buy used, its much smarter, esp with the transferrable warrenties most cars have.
second, dont trade your car in. sell your car, and buy the new car separately. youll get much more for the car.
2007-01-23 14:38:54 · answer #8 · answered by Kyle M 6 · 0⤊ 1⤋
first find the kelly blue book value for your car and then go from them there. if your young and female, you will and can be easily taken advantage of. take someone with you. preferrably male and older if possible.
2007-01-23 14:34:52 · answer #9 · answered by xtal6872 3 · 0⤊ 0⤋
if the car u have has nothing wrong with it then keep it
2007-01-23 14:35:03 · answer #10 · answered by Anonymous · 0⤊ 0⤋