how to trade?

Question

if i trde my car in at a dealership, do i have to put a down payment on the new car?

i still owe over half what the car is worth can i still sell it by owner??? or should i still trade it in???

Answer 1

If you are in an equity situation, then selling it yourself is an option. You will typically get more money by selling it yourself, however it's not always the best option. For instance, if your car is out of warranty then it's more difficult to sell private party, so even if you get $1,500 more for the car selling it yourself, if it takes 3 months to sell it, then you will have to keep paying full coverage insurance as well as make the payments. Kbb.com has no bearing in the market place, so I would not use their values as a point of reference. If you choose to sell it yourself, then look at how much similar makes and models are selling for in your area.

When you trade the car in, in most states, you will get sales tax credit which reduces your taxes by deducting your trade value from the selling price. This figure is then used to figure your taxes. If you have equity, then you can use it as money down to lower your payment. In cases where the buyer owes more than the vehicles trade in value, they have to add their difference into the new loan, which increases the payments. I hope this helps and you can email me if you have questions.

Answer 2

Depends on if you still owe money on the car you're trading in.
Also depends if you can secure a loan for the
Amount of New Car minus
Your Trade-in.
Whatever the balance is will determine if you can secure a loan
based on your credit. Remember to allow for Tax, tags and destination charges. They usually don't show up in the sticker price of the new car. Also, do research on the car you're planning on buying and the car you're trading in.
Dealers will try to get you to pay MSRP on the new car and give you the lowest price on your trade. You can check Internet sites like Kelly Blur Book, Edmunds car for new car/used car prices. It will list dealer invoice and MSRP.
Remember, the dealer makes whatever the Invoice price is and what you pay plus they receive a holdback from the factory and they also get sales incentives.
Best time to buy is close to the end of the month. The dealer will have to pay the interest on the loan of the car for another month if they don't move it within the month. Close to end of year is another good time.
Good Luck

Answer 3

If your trade in is paid for then yes, they will use that as part or all of your down-payment.

Remember that you will get more for your vehicle if you sell it outright instead of trading it in.

Good Luck