How do car dealers finance you, do they subtract your trade in first and than apply the APR or do they just assume your trade in is your early payment. I want to know how it happens in detail. Thank you.
2007-06-24 04:46:02 · 4 answers · asked by Orazali A 2 in Cars & Transportation ➔ Buying & Selling
Watch these car dealers very closely as there is a saying, you can't deal with a dealer. Anyway I will try and summarize how most of these dealers work. If you have a trade in, most dealers try to give you below market value on your auto. They tell you that they either can sell your old car or they wholesale to another dealer who specializes in selling older cars. If you are trading in your present car and owe money on it, they usually take it off your hands but again give you below market value. For instance, if you owe $3,000, they may only give you $2,000. The other $1,000 difference is called negative equity and that is attached to the original loan that you secure on another car. In other words if your paying $10,000 for a car, you will be paying an additional $1,000 bringing the total to $11,000 plus tax and prep. The dealer also charges you for registering your new car as well as for new plates. So there you have it. Unless you can keep up with these smooth talking sumbitches, my advice is to buy a used car unless you have the money to burn.
2007-06-24 05:08:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
we take the selling price of the car(whatever yuo agree upon not just full asking price) and subtract from that the value of your trade, and that is what you pay taxes on, then we add what you still owe on your trade to that, and that number is what the apr is applied to. if you dont owe anything then its just the price of the car minus your trade value, and dealers do not set the apr that is done by whatever institution aproves the financing, and we have to charge fees because thats what we pay the dmv, and as for dealers not giving full market value we dont we give trade in value, if you sell your car on your own you should get more for it but it is a pain to do and you have to pay the taxes on it so most of the time it is better to trade it in.
2007-06-24 06:23:02 · answer #2 · answered by spacemonkey1958 5 · 0⤊ 0⤋
Most car loans are simple interest, so it would be after trade in and any down payment.
FYI, in some places (I know here in Texas) the taxes on your car purchase are also calculated after your trade in.
2007-06-24 04:55:31 · answer #3 · answered by Michael C 7 · 0⤊ 0⤋
ok heres OUR order at work....
-selling price
-documentation fee
-rebates (if applicable)
-sales tax
-title fee
- temp tag (if applicable)
-trade value (positive or negative)
-grand total
hope this will help you out!
2007-06-24 09:32:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋