Buying a prewoned car?

Question

Does anyone know where you can get a pre owned car simply using a trade in with no money down. I live in Alabama.

I own my car. Fully paid for. Title in my name

I own my car. Fully paid for. Title in my name

Answer 1

Any dealership should be able to do this, assuming your trade-in is valued higher than the pre-owned car you want to exchange it for.

Keep in mind, however, that the dealer is making money off you twice on this transaction -- by giving you a lowball value on your trade-in, and "selling" you another car with their standard mark up.

In other words, say you have an '02 Explorer. Trading it in straight across for another car may very well net you something equivalent to...an older Explorer with more miles!

Answer 2

All depends on the equity position you have in the car your trading. If you are in a "positive" position, meaning the car is worth more than you owe on it, or it is paid off, you'll have no problem assuming you're creditworthy.

If you are "upsidedown" as most are, it depends on how far. A bank will only finance a certain percentage over low blue book. If the price of the car, plus the negative equity exceed that amount, you will have to come up with cash. On the other hand, if the price, plus negative equity are not over the limit (usually about 120% of book) you're in good shape.

Doesn't matter what state you live in.

Answer 3

I think it all depends on your credit rating and the price of the car you want to buy.

Most Banks/Credit Unions will finance 100% of the loan if you have great credit. The down payment will come from the equity in your trade.

If your credit is not very good your trade will have to represent a large portion (15% - 20%) of the total price of the new car.