I am thinking about getting a different car and everytime I test drive they ask if I have a trade and how much I owe. What gives? Any of you ever been a salesman? Is this a bargaining stratagy they use? Thanks for the help!!
2007-02-23 09:39:32 · 14 answers · asked by Daniel 2 in Cars & Transportation ➔ Buying & Selling
I am a Mark of Excellence Award winning Sales Consultant.
It is more an attempt to determine whether to take off a discount or to pad the trade's actual cash value. If you owe too much on your trade, he may decide that his time is better spent elsewhere.
2007-02-23 09:42:12 · answer #1 · answered by weams 2 · 0⤊ 4⤋
Please don't lie to salesmen like everyone is telling you to. The main reason a salesman is asking you how much you owe is to properly qualify you as a buyer. If you owe more than the cars value it's not very easy to get you financed because the bank will question the loan amount. Also there is only a certain amount of negative equity that can be rolled into the new loan. If you are too far upside down there is no reason to proceed with test drives and numbers if there is no chance of getting you bought by the bank. It's an important question that needs to be answered honestly because if you decide you want to replace your current vehicle you are going to have to disclose it anyway and won't you look silly when you tell the salesman you lied. All of the answers above just proves that consumers are just as bad if not worse than the sleazeball car salesman that have given the car business a bad rep. Anyway we know your lying keep in mind a good salesman sells about 20 cars per month and has heard ever story in the book.
Q:When do you know a customer is lying?
A: When they open up their mouth.
2007-02-23 11:41:17 · answer #2 · answered by Tony J 2 · 2⤊ 2⤋
This question is used to determine the type of buyer you are. True, some salesmen like our Mark of Excellence winner above, will move onto someone else if they are to far upside down in their trade. The true fact, provided by industry data, is that almost 85% of all car owners are upside down in their trades. With long term financing the norm nowadays, this is the end result. When negotiating, the best customer trick you can keep in your back pocket is to never mention the trade. Work your best deal out on the vehicle you are interested in. Then, bring in the trade, and work it as a seperate item. Dealerships will show you more on a trade upfront, in the beginning of negotiations because they can simply work off of MSRP. If they have already haggled a lower price, they are forced to show you actual cash value for your trade. All in all, the difference number (the new car minus your trade) is the deal that you should be negotiating.
2007-02-25 14:30:41 · answer #3 · answered by t.carp 2 · 1⤊ 0⤋
Car salesmen need to know how much you owe on your trade b/c they basically pay it off. And if you owe more than they are going to give you they add the difference to the new price of the car. It's called being up-side down in your trade-in. But be careful not to tell them how much you owe before they tell you how much they are willing to give you because they might go lower on purpose. Good luck
2007-02-23 09:58:47 · answer #4 · answered by Janet E 2 · 0⤊ 0⤋
To figure out if you OWE more on your current loan than what the car is worth.
It's not a bargaining tool.
If you're upside down on your current loan you'll have two choices:
1. Pay off your loan and then give a downpayment for new car.
2. Use any equity AS a downpayment for the new car.
Basically that's the short story of it.
.
2007-02-23 11:55:32 · answer #5 · answered by rob1963man 5 · 0⤊ 0⤋
Ha! I just went through the same thing. My car isn't paid off yet and I was in the market for a new one. I owed $4400 on a Honda and was offered $3000 for it. I sold it to my brother for $4400 and bought a 07 Dodge Nitro.
If you're not serious about buying one yet, tell them its paid for so they'll leave you alone.
If you owe more on your car than its worth, try selling it first. Remember, salesmen are NOT your friend. If your car is "upside down" they'll make more money by financing you.
Another hint from the granddaughter of a car salesman - anything on the car that is added on (not stock to the car) tell them you are not willing to pay for it and to take it off. Most time it is more expensive for them to remove it and they'll throw it in for free. I got a $400 car alarm this way.
2007-02-23 09:51:13 · answer #6 · answered by felixandme 2 · 0⤊ 1⤋
Sell it outright and take the buyer to the bank with you, he writes the check to you, you hand it to the banker and he gives the title to the buyer. If you trade it in you will get screwed, car sales people make their living by giving you approx. 1/2 market value and the selling you a different vehicle for over market value. Most are very fast talkers and specialize in making you think your getting a great deal but later you'll realize that you got shafted. Regardless how you do it you'll have to go through the loan process again.
2016-05-24 03:32:16 · answer #7 · answered by Anonymous · 0⤊ 0⤋
no they are only giving you a certain amount on trade say 4000 but if you owe 7000 the price of the car your buying will go up by 3000 to make up difference they use that to figure your price and payments
2007-02-23 09:44:19 · answer #8 · answered by gregs111 6 · 0⤊ 0⤋
They want to know how much upside down you are on the car so they can finance the difference into the price of the new car. Basically, they're trying to milk every penny out of you.
If you are window shopping - tell the salesman that the car is paid in full and to leave you alone.
2007-02-23 09:44:36 · answer #9 · answered by Anonymous · 1⤊ 1⤋
They ask how much you owe because they are going to take the amount of your trade & deduct it from the amount you owe. The remaining balance owee will be added to your new loan - they don't tell you that up front.
My cousin is $2,000 upside down on her minivan.
2007-02-23 09:44:47 · answer #10 · answered by ang_phx 3 · 0⤊ 0⤋