I am still making payments on my car but want a new car already!?

Question

I owe maybe 5 grand left on my car.. I would like to trade it in and get a luxury bmw, lexus, or mercedes FOR A GOOD DEAL only, fairly new. What do I do???? ANd is this possible

Answer 1

As a former auto salesman I know it can be done; just depends on how you wish to proceed. First, is your car worth more than you owe? To determine that go to kbb.com (kellybluebook) you can see what your care is worth as a trade in as well as what you can sell it for on your own. Even if your in a negative equity situation you can still trade in your car. Be prepared to come up with some money if you decide to purchase a newer used vehical, If you purchase or lease a brand new car you may not have to depending on what incentives are available. There are plenty of tools available online for you to know in advance what your payments will be, ect so do your homework.
And dont fall for the dont discuss your trade in at all till you work out the new car deal or try and hide the fact that you even have a trade in advise that so many misinformed people think is the way to go about negotiating a car deal. As long as you
have done your homework you already know what its worth; and the dealer will know about it anyway once your credit is looked at.

Answer 2

Yes, you can get a new car.

You can either 1. trade in your old car or 2. sell your old car yourself.

If you trade in your old car, make sure that the dealer you are trading the car to agrees to pay off your current loan. What typically happens is if you still own $5000 on your old car, and the dealer feels your car is worth $3000, they will add $2000 to your new loan (the difference of the $5K you owe - $3K for what the dealer feels your car is worth). Make sure you get EVERYTHING IN WRITING.

Also check with your current loan company to be sure the loan has been paid off by the dealership in a few days.

You can also sell the car yourself. Typically you can get more money if you sell the car yourself, but there's always pluses and minuses. The minus is you'll have to deal with people, show them the car. Allow them to test drive the car, etc. This can be a hassle, and some people will even ask you to finance them or make payments to you. USE EXTREME CAUTION IF THEY ASK YOU THIS. I wouldn't recommend taking payments from someone else unless you really trust them.

Good luck on your new car.

Answer 3

Maybe. Start by looking at you car's value to see what equity you have. Here's a site: http://www.kbb.com/

Take a look at your used car value based on whether you trade it in or sell it yourself. You'll find you can get more if you sell it yourself, but that requires prep and patience.

In terms of of the new car. Look at cars, and negotiate a price for the new vehicle - DON'T even discuss your trade in until you've found your best price. Once you agree to a price, you then negotiate on your trade value. A good tip - shop at the end of the month as salespersons are hungrier for a sale, and dealers often have incentive money (no, not the advertised rebate, incentives from the factory) that they can apply to your purchase to get the sale.

You may want to pick up a book on buying a new car (and a consumers reports magazine) from your local library to help you with your research.

Answer 4

The best car in the world is a PAID FOR one. Wait till you pay for it, then save for the new one. Once, you pay it off, the old one will drive SOOOOO good. lol