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I plan on getting a loan from my credit union. I owe about $12000 and the Kelly Blue Book has its trade in value at $8675. I have never had any problems with it and i wouldn't say it's in excellent condition but it is in very good condition. Just want to be as informed as I possibly can be. So any input would be valuable.

2007-09-23 14:27:16 · 3 answers · asked by Renaisannce Man 1 in Cars & Transportation Buying & Selling

Please...if you are going to answer stay focused on my question. I am going to trade in for reasons that I choose not to disclose. Keeping the truck is not an option. In about a month I will be trading it in. I understand that I will have about 2k to 3k in negative equity but I need information on how to best negotiate this deal.

2007-09-23 15:04:45 · update #1

3 answers

You are already upside down on your 02 and you want to roll that debt into a new car loan? Think about this, from your numbers you will be over 3K in the hole on the new loan before you drive off the lot, and then another 2k after that.

Don't do it. my brother in law did this, and before long he owed 20K on a car that was worth 12. Keep your 02 until you either pay it off, or at least owe no more than it's worth.

Update - I read your additional - so, the poster behind me is correct, if they give you a big discount up front, they'll take it away on the trade, or vice-versa. Here's what I would recommend - go to all the sites, edmunds.com, autos.msn.com, etc. and make sure you are well informed on both the trade in value of yours and the both the MSRP and dealer invoice (as well as any rebates/incentives) on what you're buying. Then - go to at least two Ford dealerships and let them fight for your business. Is the newer truck brand new? You should not pay much over dealer invoice for it, and that's before any rebates, and then they should give you the book on trade too. If the newer vehicle is used it's harder since it's real value isn't as easy to define. If the 06 is a leftover and they're trying to sell it as "new", don't believe it - use one of the aforementioned sites and get a value for it as a used vehicle, just with few miles. If you buy an 06 with just a few hundred miles on it, it might be new, but if you get in an accident on the way home, it's a nearly two year old truck as far as the insurance company will pay, so make sure the price you pay up front reflects that, or buy something else.

Good luck.

2007-09-23 14:52:48 · answer #1 · answered by PMack 7 · 0 0

It doesn't really matter. The dealership is going to treat your trade-in & new car purchase as a single transaction, as far as how they calculate their profit. If you negotiate a rock bottom price on the new car, they are going to give you a rock bottom offer for your trade-in, whether you tell them about it up front or not. Likewise, if they give more for the trade-in, it's because they've padded the price of your new car. Since you are upside down on your trade-in, you don't have much leverage. Most likely they will inflate your trade-in value in order to get you out of the old loan, and then charge you an arm and a leg for your new car.

2007-09-23 19:21:36 · answer #2 · answered by nevergonnaletyoudown 4 · 0 0

I would not recommend buying a new car until you have paid off your old one, but since that is not what you asked...
I would negotiate the new price first. Don't even mention a trade in until you have agreed on the price for the new one. Dealers try to manipulate the prices to make it look like you are getting a better deal on the trade in.

2007-09-23 14:36:01 · answer #3 · answered by Anonymous · 0 0

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