Trade in value of your car, is that a down payment?
scjon03 asked:
I wondering how this works. When you trade in your car, does that value = a down payment for a new car?
I wondering how this works. When you trade in your car, does that value = a down payment for a new car?
Trade in value = $15000
Owe= $5000
New car price = $30000
Price with Negative Equity = $35000
Does that $15000 = a down payment ? so your total finance is $20000 ??
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yessem
Yes sir thats correct.
Trade in your car for cash, not for a down payment. Dealers play financial tricks with trade ins, often hidng a price increase with a smaller trade.
Negotiate the price of the car in cash dollars, then negotiate the trade in separately as cash which you can decide to put towards a down payment. Check Carmax for what they would pay you for the car as a comparison.
If your trade in value is $15,000, and you owe $5000 on it, then you would have $10,000 down payment towards the new car. So if the new car is $30,000 you would only finance $20,000.
I believe that you would have to pay off the mortgage on your car which would then leave you 10,000 for down payment on new car. You would finance the balance.
that’s the car buyer’s below assessment price, so they can sell your car at the high assessment value so they can earn double in “buying and selling”.
that’s what i called double jeopardy!!! you loose a car and money…. he he
A little confused.
You state you have a negative equity of 5,000.
Does that mean your payoff is 20,000?
If your car is worth 15k and you owe 20k then you are 5k upside down, which the dealership will now tack on your new car loan.
30k + 5k= 35k
If this is correct, you are going to be financing 35k not 20k.