Car financing questions?

Question

I am planning on financing a car soon and have a couple of questions.

1) What is trade in value ? I thought it was a price to help deduct how much i would be paying monthly. Is it like, lets say if i wanted to trade in the same vehicle i bought at a later time , or does it mean its a seperate car im trading in to help reduce the price of the car im trying to buy? kind of confused on that

2) What is normally the sales tax % i would be looking at these days ?

If someone can help me clarify these things, id appreciate it. thx

Answer 1

Le me explain the terminology first, then I will help you to explain the process. Not understanding the process of purchasing a vehicle can be nearly lethal because the saleman will attempt to suck as much from you as possible.

"Trade in Value" is amount of money that your vehicle is worth at DEALER / TRADE IN prices. On your vehicle, the odometer mileage, appearance of the interior and exterior, and luxury options determine the price. The dealer or trade-in value is a lot less than what your car is really worth, because they will buy your car for $1500 - $3000 less than it's actual value. The dealer does because after you leave the lot, the dealership will fix up the car and then sell it on their lot for the actual blue-book price and reap the $1500 - $3000 profit that you lost.
If you want to sell your vehicle to make the profit for a downpayment, I highly advise you to sell it yourself (privately).

In addition, if you haven't finished payments on your current vehicle and wish to trade the vehicle for a new one; you will end up paying more money. For example, if you owe $8,000 on your vehicle and you get a trade-in-value of $3,000.. The remaining $5,000 balnce is then added to the purchase of your new vehicle; thereby increasing the payment drastically. If you purchase a new car for $22,000, now, your actual loan will be for $27,000. This will cause you to have a ballonned payment, resulting in a ridiculous monthly car payment or an extended payment plan of possibly 72 months to afford the vehicle.

The sales tax is the current percentage amount of tax you must pay for per each dollar spent when purchasing an item. Each state and county is different, but I will give you an example Here in Los Angeles, our sales tax is 8.25% for every dollar or 8.25 cents. Lets say $22,000 x 8.25% which equals $1,815 in sales tax. This is the best answer I can give you because each state/county varies in taxes.

Answer 2

1) What is trade in value ?

You have something that you fully own, presumably a Vehicle and you are giving the vehicle to the dealer, the trader will value the vehicle (about half the money or a third of what you could get if you sold it privately) and deduct this value from the money you will owe to buy your new vehicle.

2) What is normally the sales tax % i would be looking at these You aren't saying where you live so I don't know. About 8/10%?. Look it up in google or phone a dealer.
good-luck












RE:
Car financing questions?
I am planning on financing a car soon and have a couple of questions.

1) What is trade in value ? I thought it was a price to help deduct how much i would be paying monthly. Is it like, lets say if i wanted to trade in the same vehicle i bought at a later time , or does it mean its a seperate car im trading in to help reduce the price of the car im trying to buy? kind of confused on that

2) What is normally the sales tax % i would be looking at these days ?

If someone can help me clarify these things, id appreciate it. thx

Answer 3

Trade in value is a guide to help you the consumer get a rough idea of what you car will be worth, it can vary by quite allot. Lets say your current car is worth $1000, the car your looking to purchase is $10,000. Lets say You still owe a hundred bucks on your car. ("closeout") The trade value would be subtracted from the purchase price before any taxes. So you would have a cash price of 9grand plus fees taxes title and tags. If you owed any money on the car you are trading in the "closeout" would then be added to this total. Which would make it $9,100.The sales tax is different everywhere here it is 8%, check your next store reciept and see what you are getting charged for sales tax then you can do the math. James Horner Auto Service manager and salesman At Johns Ultimate Auto in WNY.

Answer 4

The "trade in value" is actually the amount of money a car dealership is willing to give You for your car. It could vary
some, it all depends on which Dealership you carry it to.
As far as sales tax goes,say you bought a $10,000 car and say had a 7 percent sales tax that would be an additional $700
The cost of the car with sales tax would actually be $10,700.

Answer 5

Trade in value - this refers to the car that have now and you want to trade in to get the new car you are looking at. If the value of the car you are trading in is worth more than what you owe on it still, then the dealership will apply that amount towards the purchase of the car, and you pay less. But your trade in could be worth less than what you owe, and you can still trade it in, but the dealership will ADD the amount over what the trade in is worth to the new car value, making it more expensive than just buying it by itself.

The sales tax is based on where you live. Some states have a max $ amount that can be charged to new vehicle sales, so certainly check up on that, or just ask the dealership. Taxes can add up to well over $1000-$1500 so keep that in mind.

Answer 6

1/ trade in value= the dollar amount allowed for your trade in, car /boat/ airplane/truck/etc... note; try to negotiate your best price then talk about trade in price

2/ sales tax varies from county to county a good hit figure for tax is 8% of selling price...note;tax and lic fees are normally around10% of selling price give or take a few bucks

Answer 7

trade value = what the car you are trading is worth

sales tax ? what percent do you pay where you live ? That is what it is