Trying to help somebody out here and looking for some good advice.
The question is: "Looking into trading in my vehicle. I found another vehicle to trade it in on which is significantly cheaper then my current vehicle. I've never done this before and not 100% sure how this is going to work"
New vehicle: 15,500 + TTL ($1800)
Current vehicle trade in: 23,000
Currently owe: 26,000
I understand im going to have to pay for the difference that ill be upside down which basically means the car will be 18k basically, correct?
You're going to get whored on the trade in thusly increasing your losses. I would try and sell outright. I'm in a similar situation minus being upside down but I'm still not going to foot the trade in loss.
Never trade a car in, nothing good can come out of it. That is how most car dealerships make their money. They dont make **** off new car sales, they make their money on trade ins and service. Be patient and sell your car, otherwise bend over and keep telling yourself that this deal isn't too bad.
when i traded in my truck, i owed ~15k on it.
when the salesman asked what i owed, i told him 19k.
he insisted on calling to verify, but i refused until we had a final deal that was in writing.
i kept telling him i needed to get atleast 17k for my truck (to keep the payments where i wanted)
they finally 'caved in' and gave me 16k for my truck.
once they called to verify payoff, they realized that i owed less that i originally said....
they took the extra money that they were giving me for my truck and took it off the price of the new truck.
i just told the guy "oh, maybe i was looking at an old statement". he knew i was lying, but there isnt anything he could do.
it wont always work, but that is how i didnt get screwed when i traded in a vehicle
I reject your reality and substitute my own.
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"
Keep in mind there is a tax savings by trading....You only pay tax on the cash difference.
BTW: Dealers aren't as bad as you think if you know how to take and retain control......
Sure they may offer you $23k for a $26k car, but its pretty realistic to move them up to $24-25k. He would need to sell it for about $25k private to be the same as $23k at the dealer, plus the hassle of paying it off with a Private sale and so forth.
So your friend is broke, can't afford his current payment and has no money down huh?
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