even if you financed? trade it in for the car you're really looking for.
2007-03-24 12:49:03 · 3 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Everytime you change cars you lose thousands and thousands of dollars. (this cost is hidden by financial trickery, but it comes out of your pocket in the end.) So, don't change cars any more often than you absolutely must. I'd recommend holding out for the car you want!
Here's the thing. When you buy a car with financing, you're buying a car - and you are borrowing money. So you have a "total owed" and monthly payments. The monthly payments add up to a lot more than the total owed, because of interest. You can pay the monthly payments, or you can pay faster, or you can pay the whole car off in a lump sum. The more you pay sooner, the less you pay total.
However if you sell the car, they want you to pay them the total owed immediately. (to fail to do so is a crime.)
"Trading in" is nothing more than selling a car and buying another car.
What is the total owed on the car? (ask the finance company.) What is the car worth? (what can you sell it for,) Compare these two numbers. Either you're above water (you'll end up with some cash), or you're underwater (you'll need all the car's value plus some cash to pay off the loan.)
Generally it sucks to sell a car to a dealer because they'll give you thousands less than a private party would.
However, if you're underwater, a car dealer can fold that owed amount into your next auto loan. (which means that loan is REALLY REALLY underwater, which is a really bad financial disadvantage!)
Now, lots of car dealers will "help" you with this situation. They want you to be in financial disadvantage. They want to "own" you, as it were. Resist :)
2007-03-24 13:33:59 · answer #1 · answered by Wolf Harper 6 · 1⤊ 1⤋
If you buy a car, it is yours, you can do whatever you want with it. The only question is whether you get something for it more than you owe.
If you finance a car and then sell it, the bank has to be notified and the balance on the vehicle has to be paid before they will release the title. If you owe $1000 and you trade your car in for $800, then you have to cover the extra $200.
2007-03-24 12:55:26 · answer #2 · answered by londonmh 2 · 0⤊ 0⤋
yes you may have to put down more money but yes
2007-03-24 12:56:17 · answer #3 · answered by undercovernudist 6 · 0⤊ 0⤋