I already did the research and my trade in from KBB is about $9200. I want the new 2007 Corolla which is around 15-17,000 roughly. My loan is more than the Corolla itself right now. How does that work when I trade it in to the dealership? Help!
2007-03-25 12:05:50 · 4 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Well basically you end up paying the loan off no matter what. So, if you still owe roughly the price of the Corolla, then they will take your trade in value, pay that to the loan you have now and you will still owe whatever is still left over. So basically, the $9200 you would get for the trade in goes to pay off your old loan. The place you buy your car from will generally pay off the entire value of your current loan to the current lender, and then just roll in whatever extra they had to pay on top of your trade in into your new loan for the vehicle. I dont know what your financial situation is, and how much you still owe on your current car, but it sounds like for right now you would be wise to hold on to the car you have until you get that loan payed off a little bit more. For the sake of the discussion lets say you still owe 20,000 on your current vehicle. Basically if you got the new car for 15,000 you would have to somehow come up with 35,000 dollars. So the car company would put the 9000 from your trade in towards that, and you would still come out the other end with a loan of roughly 24,000 for a car that cost you 15,000. Your car is negative equity right now, which means you owe more on the car than what it is worth. You are going to have to make some more payments on it and get the loan under control before you start to consider buying a new car.
2007-03-25 12:25:10 · answer #1 · answered by Ray G 2 · 1⤊ 0⤋
The term is being "upside down" on the loan. You'd have to have a loan to cover the balance you owe after trade plus a loan for the entire amount of Corolla. Your best bet is to check out the retail value of the car your trading and attempt to sell it, but you still might owe on the loan, or find someone who will take over the loan payments for you.
2007-03-25 12:15:34 · answer #2 · answered by Scott B 7 · 0⤊ 0⤋
regrettably you may no longer return the motor vehicle. as quickly as you sign the papers that's yours. I discovered this the no longer hassle-free way. I had long previous to finance a vehicle and it grew to become out it grew to become right into a lease. They did the "previous dealership" tricks on me and made me wait from 4pm till 8:40 5 pm (purely in the previous ultimate). I labored all day and spent all night interior the dealership. i grew to become into drained and wanted out of there. long tale short...I had to leave it there till I have been given the coverage and registration. I called them no longer even 24 hours later (whilst the motor vehicle grew to become into nonetheless on the lot) and informed them I replaced my innovations. They informed me I signed the paperwork. The time for asking questions grew to become into in the previous signing. I then informed them i does no longer come get the motor vehicle and that they only stated, if i did no longer it would be repossessed precise on the lot and that i might have it on my credit report. The money have been plenty greater than i needed, besides the fact that it beat having a repo on my CR. All it takes is so which you would be able to sign the contract. you do no longer even might desire to take it off the lot. regrettably that's yours.
2016-10-20 10:46:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you bite it or pay it off don't trade your car in, sell it privately you will get more money for it!
2007-03-25 12:10:10 · answer #4 · answered by boostnutt 3 · 0⤊ 0⤋