Feb
I have a 04 nissan that i wanted to trade in for a 08.. The car isn't fully paid.. I recently got a deal saying that i can get a new car for 8 grand if i trade in my car.. So how does that work??? My car is n't fully paid yet?? Do i still have to pay my car and the car i get by trading it??
Answer:
There isn't much magic involved, but it can get confusing at times. This is how the process works.
The dealership you go to will first appraise your vehicle by examining what make, model, and equipment it may have. They will use a guide to determine the trade-in market value such as Kelley Blue Book, Black Book, or NADA. Depending on how your credit is, If you owe more than what the value of the vehicle is, then the dealership will take that "negative equity" and apply it to the new loan. Credit is an important factor here because the banks limit how much you can finance a vehicle for based on the vehicle's value. If the negative equity is too high, the dealership will ask that you put some money down in order stay below the bank's allowed advance.
In the event that you owe less then what the vehicle is valued at, then that equity will be interpreted as a down payment on the contract. This is a good thing because it will help reduce your amount financed, thus reducing your new car payment.
It was once practiced that a dealership would increase the price of their car (the one you're buying) in order to take the higher gross and pay off your car for you. That was outlawed in California and several other states some 35 years ago.
To protect yourself, be sure to ask the dealer how much they are giving you for your vehicle and that all the figures are disclosed on the sales contract.
Answer:
I have no idea…
BUT, make sure YOUUUUU take the license plates off and return them to DMV. A lot of issues arise from the dealers/new purchasers not removing the old plates tied to your name.
Answer:
any "discount" they give you for trading an old car in they just make up by increasing the interest rate. and that "government subsidy" garbage is just a scheme.
go to the dealer, get a deal on a new car with no trade-in and when it's all written up, tell them you have a car to trade in and will they give you the 8000. of course they wont, theyll offer you 800 or something.
as for trading in a car you havent paid off it's basically the same thing. they get that car and you buy a new one instead. the "discout" is not worth it because they will increase your interest rate or w/e to more than make up for any loss
Answer:
They take your car.Give you less for it than it's worth. Then they also add what ever you owe on it to the price of what ever your looking at.It's a win win situation for the dealer and a total lose for you. Worse thing you can do is trade in a car on another one,especially if you still owe on it.
Answer:
You are selling the car to the dealership. It doesn't have to be paid off to do so, people do this all the time. The dealership will make you an offer, hopefully for more than you still owe. If it's higher than your payoff balance, you can take the rest and use it as a downpayment for your next car.
Answer:
The dealer you are buy the new car from would pay off the loan on your old car. If the value of your old car is less then the amount of the loan, the dealer would typically add the difference into you new loan.
You can check the trade in value of your car on Kelly Blue Book website (kbb.com). You should take a copy of the KBB info on your vehicle with you when you go to the dealer. Another great site for cars is bindulgent.com.
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