but my credit isn't great. (Intrerest rate 12.99) Would've been higher had I bought a used car. (But I got hit by a drunk driver and my last car got totalled out, so this was my only option was to buy this car--the one currently driving and hate, at the time, because I could get it from the same dealer w/ no money down. So my question is this.
Can I trade my current car in and lets just say I owe 11,000 on it let's say I get .........$7,000.................trade in value and then get a new car for say $13,000 does that only leave me owing the remaining balance,say $6,000 for a newer and better car then the one I originally bought? Or does it not work that way? Do I still owe the entire $13,000. Please help.
2007-05-10 16:50:22 · 3 answers · asked by blazing_fire 4 in Cars & Transportation ➔ Buying & Selling
It's far worse than that. You'd be driving a $13,000 car that you owed $17,000 on. The $4,000 shortfall on the one you're driving now and trading in would be added to the price of the new car.
You're what we call "upside down" in the deal. You'll have to wait another 3 years or so to get rightside up again. Sorry, but that's life.
2007-05-10 18:13:13 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
if i understand right you would take the 7k that you get which would mean you still owe 4k from the original 11. you take the 7 off of the 13 and add the 4. so instead of 6000 you would owe 10000. i think thats how it works. since the money you owe would still have to be accounted for.
2007-05-11 00:00:05 · answer #2 · answered by eehjay 1 · 0⤊ 1⤋
$13,000 (new car price)
--$7000 (value of trade)
-------------
=$6000 (trade difference)
+ $600 (approx. taxes & fees)
+$11000 (balance owed on trade)
---------------
=$17600 (amount of your new loan)
subtract any money down (you WILL need money down) and/or rebates
2007-05-11 00:12:36 · answer #3 · answered by Vicky 7 · 2⤊ 0⤋