2007-02-06 07:30:35 · 7 answers · asked by lou 1 in Business & Finance ➔ Credit
Everytime you buy a vehicle it depreciates when you drive it off the lot. What is wrong with the truck that you want to get rid of it?
Check your value at www.kbb.com and you can compare that to the payoff on your loan.
2007-02-06 07:34:48 · answer #1 · answered by Jo 6 · 0⤊ 0⤋
You could trade it in right now, but you are going to take a huge hit for deprecation at least 25%. If the truck is not what you wanted? Why did you buy it in the first place.
Also a lot depends on where you bought it. If it was from a buy here pay here lot chances are they do not report to the credit bureaus anyway. And even if they do banks look for a least 12-months of paid as agreed installment loans
2007-02-06 07:40:07 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Unless you put a lot of money down, or got one heck of a deal, it generally takes 36 of 60 payments until the trade in value equals the payoff amount.
You could probably trade it in, but the dealer will want you to cover the difference with your down payment. If you have excellent credit, you may be able to roll the difference onto the new loan, but I would NOT recommend that.
2007-02-06 08:42:06 · answer #3 · answered by Anonymous · 1⤊ 0⤋
right now if you wanted, but your truck is only worth about 75% of when you bought it. So the bnegative equity would be rolled over into your new payment makeing it more expensive than the one you currently have.
Example
your truck purchased ='s $10,000
your trucks value now (retail)= $7500
you owe='s $9800 on your loan (assuming $200/month payment)
Trade in value='s $5500
Negative equity='s $4300
New Cars purchase price='s $10,000
add in your negative equity='s $14,300
New payment ='s $285 a month for 5 years for a $10,000 car
Thats $17,100 over the term of the loan you are spending to drive a $10,000 car
Not worth it!!!! Drive what you have until you pay it off
2007-02-06 07:44:04 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Huh? Why would you buy a truck, make one payment, then trade it in? Econmically, that makes absolutely no sense. You will take a big loss on depreciation because that happens once you drive it off the lot. Vehicles are not like houses. Houses appreciate it almost immediately. vehicles DEPRECIATE the moment you leave the dealer.
2007-02-06 07:38:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
you could trade it in today if you wanted to however you are going to take a hefty loss on it as vehicles depreciate by 25% right when you drive it off the lot.
2007-02-06 07:33:48 · answer #6 · answered by Scott K 2 · 1⤊ 0⤋
Yes you can trade it ..but not smart..the deprecation is gonna kill you when you trade it in.
2007-02-06 07:34:27 · answer #7 · answered by whatelsewhatever 3 · 0⤊ 0⤋