Trade-in Process? How do i?

[BryanCain]

why don't you grow up and just get a truck.

 

[Mr.Ronin_2U]

What they do is give you the trade-in value,then the rest get's put on top of the new loan,so say you owe 7k,and they give you 3k,you will then have 4k on top of your new car total price.

 

[Mr.Ronin_2U]

why would a dealership just pay off your other car loan for you? that makes no sense at all

It makes perfect sense,they pay off the balance to get you to buy one of their cars.

 

[Astyl 10+ year member]

why don't you grow up and just get a truck.

because im not a truck person whatsoever, last weekend i did a cruise event with about 100 other cars where we all went canyon carving through the new hampshire mountains basically, its a 400 mile roadtrip event and if i had taken my truck there i would be the slowest person around every other car you saw there was a EVO or STI with a fully built suspension that could go 85 around 90 degree corners and ide be there in a SUV, im just a car person nothin more 2 it

 

[dillinja666 10+ year member]

they tack the 3800 you owe on to the loan for your new car... 20K for new car 3800 for old car = new loan for 23,800....i say keep the old car..

how did you get so upside down in your loan? hope you got gap insurance too wow!

edit: and i forgot, most banks are not going to finance more then 100% of the new value of a car right now...so if you ask for a loan of 23800 for a car worth 20 they are gonna deny ya. hell most banks are trying to only finance 80% of the loan meaning you have to have an actual cash downpayment or positive equity on the trade in even to get a loan right now..and thats if you have good credit. again hang on to the old car

 

[djman37 5,000+ posts]

Let me give you the best advice you will hear in this thread: If the truck runs, keep it. If you aren't a baller yet, it's OK. You don't need to try to be one. You are at the start of your adult life with an itty bitty 7800 bucks to pay off. If you go the wrong route and get yourself into the cycle of accumulating negative equity and dragging it with you from car to car you significantly shorten the amount of time in your life when you'll be without a car payment. It costs you disposable income that could be working for you in other ways and can costs many thousands in interest. The longer you do it, the harder it gets to break the cycle and take a breather from car notes while you still have something new and reliable. You will look ghetto fabulous but hamper your own ability to accumulate the kind of money that will buy you fresh toys while handling your other business.
I held my first vehicle (the one I drove in college), a piece of crap, for 5 years after I graduated and wish I woulda kept it another 2-3. Bought my second one brand new, held it for 5 years (3 without a payment) and wish I woulda kept it for another 3 or 4. Wanted something new but always remember all the other things I could do with that money.

To answer your question: Your trade in amount pays off whatever it can on your vehicle. The leftover part of the loan gets rolled over into the next loan. A 28thousand dollar car becomes a 31,800 dollar car. If you pay that down to 20K then trade it when it's worth 15, whell your next 31,800 dollar car becomes more like a 36-37000 dollar vehicle. Each time you do it you pay interest on interest. Each time you do it you increase the likelihood that you will either be in a state of perpetual car payments or else when you try to pay something off once and for all you'll make payments for 6 years or something like that and by the time it's paid off it's got miles and wear and tear and not as much usable payment-free life left.

I know none of that is what you wanted to hear, but like someone else said it sounds like you're getting ready to turn around and grab your ankles. Trading to save gas money almost never makes any sense. Why take on a 300 dollar or more payment per month and play thousands in interest over the loan to save, what, 100 bucks per month maybe? If you think about it you're not really saving any money.

shootin' ya straight right there.

the process for buying a new car goes in this order. Make sure paperwork is signed and there is a written DEAL FIRST before moving to the next step.

1. Get the value of the new car and trade-in vehicle.

1a. Sell your current vehicle outright.

1b. lock your credit rating with the bureaus as EVERY credit check counts against you. Take your credit rating with you.

2. Negotiate the price of the new car.

3. Discuss financing (if you don't already have this taken care of with your bank)

4. Discuss trade in value of your vehicle if you have one

Don't be afraid to walk out, they are afraid YOU will walk out.

 

[Astyl 10+ year member]

they tack the 3800 you owe on to the loan for your new car... 20K for new car 3800 for old car = new loan for 23,800....i say keep the old car..
how did you get so upside down in your loan? hope you got gap insurance too wow!

im upside down on my loan because its a POS Chevrolet SUV gas guzzler and the resale value of these things tanks like crazy especially because of chevys current situation, i bought it used with 74K

 

[jpexpc 10+ year member]

The advice about not telling them about your trade-in is very legit. I bought a Blazer and with my trade-in I paid $15,000 (Gave me $2,000 trade for my car). I saw it in that weeks newspaper a few days later for............$15,000.

Also note that if you don't have awesome credit that an upside down loan throws you into a higher interest bracket. There are two reasons:

1. You owe more than your new car is worth. Therefore their liability increases if you fold on the loan.

2. You are showing the bank that's loaning you the money that you're not completing loans. While most people think paying off a loan fast is a good thing, usually it's not. Especially in this circumstance. If you trade-in a car you still owe on the bank perceives this as a routine and will assume they won't receive the total loan value before you pay it off and get another. This means the banks don't make as much off of you because the interest didn't get to compound for the full loan term.

 

[RKPsk8er 10+ year member]

I think you'd be better off trying to sell your trailblazer as a private seller. you'll make more money on it.

 

[krainium 10+ year member]

my advice is dont tell them your going to trade in until you can get them at there bottom price then once they agree and sign be like. oh yea i have this to trade in on it..

X2

 

[WOT]

My only advice is to sell your trailblazer privately, dealerships **** you on tradeins

Your also stupid for wanting something that new at your age with your track record

That is all

 

[alvitae 10+ year member]

Pay off what you have.

What the average family pays in car payments buys a duplex to rent out making you money. Once I get this last car payed off I am never making car payments again.

My grandfather didn't make squat for wages, but when he died he owned 5 houses some acreage and raised 14 kids. He did it by never buying anything he couldn't afford. If he didn't have the cash for it he didn't buy it. Period.

 

[bigbangtheory 5,000+ posts]

The advice about not telling them about your trade-in is very legit. I bought a Blazer and with my trade-in I paid $15,000 (Gave me $2,000 trade for my car). I saw it in that weeks newspaper a few days later for............$15,000.
Also note that if you don't have awesome credit that an upside down loan throws you into a higher interest bracket. There are two reasons:

1. You owe more than your new car is worth. Therefore their liability increases if you fold on the loan.

2. You are showing the bank that's loaning you the money that you're not completing loans. While most people think paying off a loan fast is a good thing, usually it's not. Especially in this circumstance. If you trade-in a car you still owe on the bank perceives this as a routine and will assume they won't receive the total loan value before you pay it off and get another. This means the banks don't make as much off of you because the interest didn't get to compound for the full loan term.

So you are saying they put the trade in on the lot and trying to sell it for 15k? I call BS on that one!

 

[jpexpc 10+ year member]

So you are saying they put the trade in on the lot and trying to sell it for 15k? I call BS on that one!

Do you even read before you post? They sold me a $15,000 dollar truck for $17,000 and knocked off $2,000 for my trade-in. I essentially gave them my van for free. Quit calling BS and start comprehending what you're reading better. I saw the truck in the paper a few days after I bought it advertised at the price I got it for after my trade.

 

[bigbangtheory 5,000+ posts]

Well maybe if you would have said that in the first place homie.

You made it sound like they took your trade in for 2k and put it on the lot for 15k, lol!

I am going on 17 hours of work and my eyes are playing tricks on me.