Trade-In Question?

Question

I did ask a question similar to this earlier- but I think this one will make more sense! :)

OK- I bought a 2002 Dodge Stratus in good condition, meaning there are a few dings that you can barely see and that is IT! I bought it less than a year ago. I bought it in July of '06. I owe about $8000 and the retail value of this vehicle basically the same, right above $8000. NOW- the wholesale value is about $6600. I was wondering if there was anyway the dealership would trade for what I owe, or at least middle of the road between wholesale and retail. I am obviously in an upside-down loan. Would that be possible or am I just dreaming? I would like answers from anyone who knows what they are talking about in this business: car dealers, leasers, buyers- the like. Thanks so much!!!

Answer 1

First the dealership will tell you that what you owe has nothing to do with the value of your car. After they tell you something that you don't want to hear, they will say the same thing in different ways until they confuse you with numbers and you finally say yes. A dealership is usually going to want to give you a little less than what wholesale value says it's worth. They will at some point show that they're giving you want you want for your trade, but it won't be by actually giving you more. What they will probably do is discount the car you are looking by however much more you want, and show you that value on the trade in. Let say you want $7000 for your trade, and they are offering $6500. And the car you are looking at is $10000. That would mean your trade difference (price after your trade in) is $3500, then you add what you owe (you owe $8000) which is $11500. That would mean your loan would be $11500 (+ tax and title and such) If you said you would buy it if they gave you $7000 for your trade, they would discount the car from $10000 to $9500, they wouldn't tell you this, instead they would show you the extra $500 toward your trade which would make a deal. Vehicles are really worth what they're worth, yours is worth $X and theirs is worth $Y, subtract the two, it's as easy as that. But dealerships don't do that, it would be too easy. So it's all a game of numbers. Whatever they 1st offer you for your trade, you can get an extra $500-$1000 from them. Whatever they are selling their car for, you can get an extra $1000-$2000 off. If you can get $1500 (or more) off of whatever they 1st tell you your trade difference is, you're getting a good deal, please know you'll have to fight for it, they don't let go of $1500+ easily. If you want anymore info, feel free to email me.

P.S. There is a much more accurate value indicator for vehicles than Kelly Blue Book. If you tell your salesman that KBB says your car is worh $7000, he will probably make a smart *** remark like, "Kelly Blue Book doesn't cut checks for cars, they make guesses and call them appraisals." It happens, I've heard it before. There is a guide called "the Black Book" It is a wholesale guide that gets info from dealerships, auctions, and private sales and then creates an average depending on condition, just like KBB. This will be much more accurate.

Answer 2

The dealership will trade that way, but the difference between what you owe and the value of the trade will be added to the price of the car you are buying. You will stay upside down until you bring cash to the purchase to pay the difference.

Answer 3

it depends on the place you go and who you deal with......usually if they give you less then what you owe on the vehicle your trading in they can throw that amount on the new loan for the car your getting depending on how much the car is and value of the vehicle.....sometimes they have rebates on new cars and things like that and that can help you out. either way your usually going to be upside down on the next one if you do that......you might want to check around see your options or sell it privately

Answer 4

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Answer 5

Go to kbb.com (Kelly blue book) fill in the information and you can look up what our cars retail value is, What you can sell it to a private party for, and what the trade in value is. Better to be knowledgeable of what your car is worth, and make an educated decision of what to do then.

Answer 6

Why don't you try selling it out right frist. In the mean time take it to carmax and see what they would give you for it. That would give you a good idea about how much a dealer will give you. Good Luck