If I still owe on my car, but I want to get a new one. Will the dealer "buy" the car from me and then add it to the price of the car I want to purchase?
2007-04-20 03:22:07 · 22 answers · asked by thisjustforyou 2 in Cars & Transportation ➔ Buying & Selling
If you still owe on your car you when you trade it in it is more likely than not that you will owe more than your car is currently worth. This is called negative equity. Your negative equity will be applied to your new loan.
Example:
lets say you're buying a car that is 19,500
your car is worth 7,000
and you owe 8,500
the following is how that will look
Selling price of new car 19,500
Trade Value 7,000
Trade difference 12,500
Taxes and fees Applied here xxxxx
Previous loan balance 8,500
Total due (plus finance) 21,000 (plus taxes& fees)
The money you owe dose not just magically disappear and no one is going to "pay off your trade no matter what you owe"
don't be fooled by ads like these
Ask the dealer to tell you the actual cash value of your trade
I've been in the car business for the last 6 years. It really is not that big of a deal. I take trades with negative equity every single day.
2007-04-20 04:34:48 · answer #1 · answered by Bill in Kansas 6 · 0⤊ 0⤋
You should pay off the Credit Cards first, as these I imagine have the higher interest rates. However, it can take up to 30 days or longer for your credit report to reflect any changes. So even if you pay your accounts now, it is unlikely that it would be on your credit report in a couple of weeks. Not knowing your exact reasons for getting a car in a couple of weeks you may want to wait. It sounds like you have 2(hopefully working) cars already that should make it at least 3 months. This way just wait until the 3 payments are done as well as paying down on your credit cards. Then you will have even less debt and the extra money you would have used for the new car you can save for a bigger downpayment or pay more on your credit cards.
2016-03-18 04:28:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I'm in the same position. Take your current vehicle to where the new one you want is, they will test drive it and give you an offer, or "Trade-In Value" haggle with them, try to get it up a little bit more. Chances are you can because a lot of places just want to sell a car. Then take the trade in value amount off of what you owe and that will leave you a balance if you have a balance it will be negative equity and if you purchase a car from them they'll add the negative equity to the new car balance and divy up your payments. Your payments will probably go up if you owe more than your current car is worth.
2007-04-20 03:29:46 · answer #3 · answered by *Heather* 3 · 0⤊ 0⤋
It depends onhow much you owe on your present car. If it's more than probably three thousand, the dealer at the new ca place may be hesitant to add it to the new loan you would have with the new car. It also depends a lot on your credit rating. You have to have excellent credit to pull it off, or you will be financed at a higher interest rate.
Best thing to do is shop around for the lowest prices and check your Kelly Blue Book online for what the car is worth, in order to negotiate a selling price on your new car.
Good Luck !
2007-04-20 03:34:09 · answer #4 · answered by Big Bear 7 · 0⤊ 0⤋
Yes they will and it will cost you an arm and a leg. You'll never be down owing. I suggest you stop being a spoiled baby and pay off your car before buying a new one. Or 10 years down the road yer going to owe $50,000 on a $15 car. So many people do this it's ignorant.
2007-04-20 03:26:09 · answer #5 · answered by Anonymous · 1⤊ 0⤋
As long as what you owe is less than the value of the car you could get from selling or trading it in you will be okay. If you go through a dealership they will work out all the details to pay off your existing car loan and create the new one.
2007-04-20 03:26:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yep, that's how they do it. But be careful because they want to give you the lowest amount possible, do your "homework' on this, check the kelly blue book and other books to see what your car is generally worth. your best bet is to sell your car outright and buy a used car off the lot, new cars are tempting but to stay in the low end of going into debt it is wise to shop around and find a great used car. you should check out the web site below, this man knows his stuff and read about the difference in buying a new car verses buying a great used one
2007-04-20 03:27:50 · answer #7 · answered by justwondering 2 · 0⤊ 1⤋
If you owe more on your present car than it is worth, they will most likely add the balance to the price of the new car. That can end up raising your monthly payment quite a bit. I'm in the same situation and have just opted to pay on my present car until I'm not "upside-down" in it THEN trade.
2007-04-20 03:26:03 · answer #8 · answered by vabeachgirl324 2 · 0⤊ 0⤋
It's called a "trade in."
Let's say that you owe $10,000 on the existing car and you want to buy a new car for $24,000.
The dealer may give you $8,700 for your existing car. So now you will pay $25,300 for the new car.
2007-04-20 03:25:30 · answer #9 · answered by kja63 7 · 0⤊ 0⤋
Yes, but it is not a good thing. If you were to crash your car or something you could end up upside down on your loan. Own more than what's its worth. I know people who have had this happen to them. They still have to pay the loan even if they end up with no car. You never want to do this such of thing on something that depreciates in value, like a car does. I would consider speaking with a leasing expert in yor case.
2007-04-20 03:35:01 · answer #10 · answered by Robert B 3 · 0⤊ 1⤋