Can i trade a car for a cheaper model?

Question

I have a 350z, which i financed new a couple months ago. I am expecting a child in the next 7 months, so how would i go about trading for a cheaper model? The 350z is nearly $35,000 and the altima is around $25,000.

Answer 1

If you financed 100% you are at present out of equity in the 350z and it is not worth what you owe on it, therefore any additional monies owed will be applied to the new loan thus putting you way out of equity and increasing the payment on the cheaper car. Go to kbb.com and see what your car is worth selling it outright, trading it in, and what the dealer will sell it for if you do. That along with knowing what you owe on it should help you determine if this is a viable option for you.

Answer 2

Unless you made a large down payment initially, you are probbly upside down on your 350z loan, meaning you owe more than the car is worth as a trade. This means, after the loan balance from the 350z is rolled into the new Altima loan, you could easily end up with payments that are greater than your current payments, even though the Altima is a less expensive car.

You should do your homework and look at all the numbers before you make a decison. It's possible that getting out of the 350z may be more expensive than you think. But, maybe not.

Answer 3

Probably not, unless you paid the difference between the two in cash UP FRONT. Even if you traded the more expensive car in, the financing would have to pay off the first car AND pay for the second car.

Answer 4

There is only 1 way to do it without getting HOSED.The dealerships pray every day for people in your sposition.Call the dealer and get some numbers....then when you come to....advertise your car for sale on a 'take over payments' basis,then when it sells,go buy the other car.otherwise you'll get screwed out of $15,000 or so...