When you trade in your old car does the other car have to be newer or a bit more expensive?
2007-05-29 12:08:49 · 13 answers · asked by Vile 2 in Cars & Transportation ➔ Buying & Selling
No. You can trade down and get some money back. But be forewarned. Dealers look at these types of transactions as taking candy from a baby. Those figures are going to be flying around so fast it's like playing the shell game at a carnival. Be very afraid.
2007-05-29 12:42:14 · answer #1 · answered by Dogbettor 5 · 1⤊ 1⤋
It does not matter what you buy. You could trade in your new Corvette for a 79 Pinto. If your trade is worth more than the car you are buying, then the dealer should give you a check for the difference.
Remember though, the dealer is paying you wholesale value for your car. They will give you the least amount of $$ they think the car is worth. They are trying to make money both ways. If you think you can get a retail value for your trade in, the dealer will "laugh" at you. They take in in at wholesale and sell it at retail. They cannot give you retail, because then they could not sell it, because they would own the car for too much money.
Do your research. Check kbb.com or edmunds.com, or nada.com. These are popular car websites that can estimate what the dealer MAY give you on trade. Typically, this value is about $1000-1500 more than what the dealer may offer you. Be honest in your evaluation of your car. Make sure you check the "trade in value" box when using these sites. If you use retail, or private party sale, you will have a higher value. And make sure you mark the condition as "fair" or "average". This is how the dealers see it. Unless it has VERY low miles, and not a dent, ding, scratch or stain, it is NOT "excellent".
And lastly, dont have a love affair with your trade in. It is worth what it is worth. Most dealers will give you a fair value. Dealers may miss a trade in and what it is worth, but they are rarely, if ever, off by more than $500-1000.
2007-05-29 12:25:51 · answer #2 · answered by swissrmeman 4 · 1⤊ 1⤋
No. You can trade in any car, any time.
Say you had a 2007 BMW 7 series. And for some reason you wanted to trade that in for a Nissan Frontier XE.
Retail to retail you're looking about 90K vs 20K.
If you traded the BMW in the difference between the price the dealership pays you for the car less what the truck costs would come back to you.
People trade in newer cars for older cars ALL THE TIME.
It is quite rare, however, to trade in a more valuable vehicle for another one and receive the difference (in cash or check) from the dealer.
2007-05-29 12:14:27 · answer #3 · answered by J 3 · 0⤊ 1⤋
Just keep in mind that anytime you trade in your current car for another car from a dealership, they're making money off you twice -- by lowballing on the trade-in, and by selling you another car with a substantial mark up (dealers typically have a bigger profit margin on used cars than new).
Although I commend the idea of "trading down" to get a more affordable payment (as opposed to those who are always "trading up", even if it means rolling over negative equity into a new loan -- a sure-fire recipe for disaster), the net savings may be significantly less than you think.
2007-05-29 12:32:31 · answer #4 · answered by nevergonnaletyoudown 4 · 0⤊ 1⤋
You can trade up or down. Most trade up. But if you can't afford your car now and it is newer, they will pay your car off and then you finace a really cheap car. My neighbor traded down about 6 months ago. They owned/finaced a 2006 Chevy HHR, they could no longer afford it and traded down for a 1998 Chevy cavalier. It's unfortunate, but they could no longer afford the new car, and they saved their credit by doing this.
2007-05-29 12:21:36 · answer #5 · answered by sparkles 4 · 0⤊ 1⤋
Good question. No it does not have to be, people downgrade all the time. But beware, they will probably not give you top dollar for your car. They don't mind buying better cars through trade-ins, because then they get to sell it at a higher price than what they bought it for from you. They always win in the end.
2007-05-29 12:12:24 · answer #6 · answered by Anonymous · 0⤊ 1⤋
It depends on the dealership. Some will buy your old car for cash. Dealers will give you the least amount for your car. Try to sell it first, or go and see what they will give you for it on trade.
2007-05-29 12:12:06 · answer #7 · answered by mybuttstinks2001 5 · 0⤊ 1⤋
yes, i'd tell them to get lost. It would seem to me to be the same as if you were to drive the car off the lot then say they overcharged you, you got screwed and want some money back. The deal is what it is. As long as its in paper you should be fine. If the deal says a different amount in contract then you may have to pay, but i wouldn't until they took you to small claims (if they did which they prob wouldnt)
2016-05-21 02:49:57 · answer #8 · answered by tony 3 · 0⤊ 0⤋
either way you are getting hammered if you trade up or down, a car dealer is in the business to make money and if they can't make at least $2,000 on your trade they won't deal.
2007-05-29 12:15:09 · answer #9 · answered by mister ss 7 · 0⤊ 1⤋
No, but cars almost never appreciate in value so whatever car you buy will most certainly be more expensive.
2007-05-29 12:11:49 · answer #10 · answered by eaglefox200 5 · 0⤊ 2⤋