Trading in car and trying to understand.?

Question

When you tradein a car how does that work? Say the car u want is 22,000 dealer price and u have a trade in and you owe 11,000 to pay off and the dealer gives you 7,000 for it. Will the dealer subtract the 7,000 from the 22,000 then add the 11,000 back on so they can pay it off, or will they just add the 4,000 for the difference. Im trying to understand. Thanks

Answer 1

In new york, due to tax reasons, this is how it goes:

22000 sale price
-7000 trade value
=15000 subtotal
x tax ( 8.625 ) 1293.75
= 16293.75
+11000 payoff on trade
=27293.75 Total to be paid.

Answer 2

If you owe more than your current car is worth, you are going to be adding debt on top of debt. Try to sell your current car privately and get 11,000 for it. Car dealers are never going give you fair market value for your trade. You will basically be paying off the 4,000 difference for the entire life of your next car.

Answer 3

Most likely the bank wouldnt finance it for you. Because u owe 11,000 and the dealer is giving you 7,000 for it, its an insufficient collateral. Meaning, theyre not gonna do it because it isnt worth it. You might just want to get the vehicle paid down to about 5,000 dollars and then trade it in. Thats what I did, so i am passing my info on to you.

Answer 4

You are making a huge financial mistake trading. You now have $4000 in unsecured debt. Trading will only increase your unsecured debt.

Once you drive off the dealers lot, your car will have depreciated thousands on top of the $4000 you owe over the value.

Please, stay with your car untill you have equity. Paying it off and being payment free is what you want to do, unless you want to throw away your money on cars.

Answer 5

you've got been scammed. right this is what you are able to assume to ensue. The broker will apologise for the mixture up and could grant to cope with the financing himself, because of the fact the loan organisation did not appove your loan. you will tearfully and gratefully agree and sign something he places in front of you, just to get out of the mess. you will locate which you signed for a horrendously extreme interest fee and a very extreme loan volume on your new truck. this might, of direction shield what you owed on your final motor vehicle, and shield THAT place of work work, and permit you to proceed tochronic the truck which you fell in love with. the end result's which you will finally end up paying tow or thrice what the truck is worth, by using the top of the loan. right this is what probable already occurred: The broker has already paid off your previous loan, as a manner to earnings posession of the purple slip. it is genuine that the vehicle has been offered, or it could't be genuine. would not matter. He is familiar with that he has you over a barrell, and he can dictate any phrases he sees extra healthful. suggestion. do not sign something. tell him you call on your motor vehicle back. in case you probably did not sign over a call to him, he won't be able to sell the vehicle. If he can grant an identical, "the vehicle is already offered" excuse, do not settle for the respond. Ask him how he have been given the purple slip. If he would not produce the vehicle, pass away the dealership and touch an criminal expert. There could be plenty who will handle this snake, with out any can charge to you. In no case might desire to you compromise for any extra deals from what's clearly crooked broker. something he provide you with to "shield the difficulty" will possibly be only as crooked, and could be to his earnings, and not yours. there is entirely one answer you are able to settle for from this guy, and that's the prompt return of your motor vehicle, and additionally youchronic away in it with out money out of your POCKET! i will repeat that section: NO money out of your POCKET. Spend your money someplace else.