Quote:
Originally Posted by Baldie559
Can someone explain the Trade-In process to me? This is how view the trade-in process. I wanted to purchase a $20K car. My trade-in is valued at $14K but I still have abotu $16K left on the loan. If the dealer takes $12K for the trade in that leaves me with $4K of negative equity. So $20K - $12K brings me to $8k. Now add $4K (neg equity) to the $8K and I get $12K. Now is $12K the amount that will get financed? Do I have the trade-in process correct?
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In reference to your question on trade in,take your trade in at 12000 off of the sticker of 20000 and then add back the 16000 you owe on the trade in and the figure you will have to finance will be 24000.00. Remember that the amount you owe on the trade in will not just GO AWAY. l spent 35 years in the car business financing vehicles and that is how it works.
My suggestion frankly is to keep your trade in and pay it down more until at least you have an equity.