I am doing an auto loan. I owe $7924 on my trade. They are gonna give me $5000 for it and add the $2924 on top of the new vehicle. New vehicle price is $10995.
Is this how the math will work or am I doing this all wrong?
10995 new car
- 5000 trade
___________
5995 new balance
+ 2924 negative equity
___________
8919 new balance
then they will add in interest, tax, title and other fees?
I am confused but I hope that is how it will go...someone help out and if its wrong, lead me in the right direction on this?
2007-10-25 05:21:28 · 4 answers · asked by kaylaloveschase 1 in Business & Finance ➔ Personal Finance
10995 new car
+7924 old car
-5000 trade
13919 balance
plus interest and fees
2007-10-25 05:25:44 · answer #1 · answered by chrome_rider 4 · 0⤊ 0⤋
The two responses above are correct. This is really not a great idea and is the first step down the path of unmanageable debt. Stop the spiral and do not think about a new car until the current one is paid off. Think about it this way. If you do this deal, you will still be paying for your current car until you completely pay off the new one.
2007-10-25 12:44:28 · answer #2 · answered by Jay P 7 · 1⤊ 0⤋
NO, it will be $10,995 + $2,924= $13,919
The $5,000 goes toward what you owe in your trade since they have to pay it off.
No taxes, they take in considerations the taxes you paid in you trade, if the new car is more expensive than the old car when you bought it, then you only pay the difference in taxes + the sticker.
2007-10-25 12:28:14 · answer #3 · answered by TXgirl 2 · 0⤊ 0⤋
The responders are correct in the amount you will owe.
Consider selling your car yourself. If they offered you $5000 - good chance you can sell it yourself for above the payoff.
That way you would not start out "up-side-down" on the new car.
If you can't sell it yourself - consider hanging on to it. It's almost paid for!
2007-10-27 20:53:23 · answer #4 · answered by chey_one 3 · 0⤊ 0⤋