topic Re: auto loan - trade-in vehicle question in Auto Loans

auto loan - trade-in vehicle question

Anonymous — Sun, 08 Feb 2009 19:21:12 GMT

When buying a new car and giving them a trade-in, can they give you a check for the trade-in value, or do they have to take it off the price of the new car? Is there any incentive for them to do one or the other?

Thanks!

Re: auto loan - trade-in vehicle question

Schoolbuskid — Sun, 08 Feb 2009 21:07:45 GMT

when ever you trade in a car, the dealer then appriase the car for what its worth then that amount goes toward the purchase of your new car.

Say you have a Ford Explorer and it valued at 8000, and the car you are looking at is priced at 18000, then they would deduct 8000 from your purchase price.

New Car- 18000

Trade-in- 8000

Amt Financed=10000

Someone else may be able to explain it better.

Re: auto loan - trade-in vehicle question

Anonymous — Sun, 08 Feb 2009 22:08:19 GMT

It sounds like you're saying that they cannot buy the car from me, in which I walk out with $. Is that correct? Could they not buy the car from me, giving me cash. And then I buy a car from them?

Thanks.

Re: auto loan - trade-in vehicle question

Takunda1 — Mon, 09 Feb 2009 04:07:18 GMT

@Anonymous wrote:
It sounds like you're saying that they cannot buy the car from me, in which I walk out with $. Is that correct? Could they not buy the car from me, giving me cash. And then I buy a car from them?

Thanks.

If you want to sell your car and get cash then sell your car to CARMAX instead of doing a trade in. Secondly whenever you trade in a vehicle, you pay you pay less taxes on the financed amount so that may be something to consider. If you are looking for liquid cash then CARMAX is your best bet. I'm assuming the trade has been paid off and you have a clean title.

Re: auto loan - trade-in vehicle question

moondog7324 — Mon, 09 Feb 2009 04:39:17 GMT

If you need the cash you better off selling it yourself. In some states your taxed amount is reduced by your trade-in value. Check with DMV.

Re: auto loan - trade-in vehicle question

Anonymous — Mon, 09 Feb 2009 05:10:39 GMT

Never gonna happen in the auto market ever, no matter how good or bad!...

Especially in this market............

Re: auto loan - trade-in vehicle question

clocktick — Mon, 09 Feb 2009 15:12:05 GMT

I had a newer car that I decided I wanted to sell. I brought it to Carmax and got an offer (you have one week to accept). Then I brought it to my local dealer, because they were much closer, and they matched that offer and gave me a check. I didn't even buy a car with them at that time. I also didn't have a loan on the vehicle either. Didn't you say in your other thread you have a loan with the vehicle you want to trade in?

You might be better off asking your local dealers if they're willing to do that. You'll probably even be better off trying to sell it on eBay, craigslist, etc. Again, do you owe on the one you're trying to trade in?

Re: auto loan - trade-in vehicle question

Schoolbuskid — Mon, 09 Feb 2009 15:14:35 GMT

Yea CARMAX is your best bet...but i doubt you'll get what you want out of it! Good LUCK!

Re: auto loan - trade-in vehicle question

Anonymous — Tue, 10 Feb 2009 00:23:49 GMT

Thanks everyone. (I do own the vehicle outright with clean title history.)

Re: auto loan - trade-in vehicle question

Anonymous — Thu, 19 Feb 2009 06:46:17 GMT

Unless there are crazy laws in your state, there is no onus that a dealership must put the trade in value down on the car you are purchasing.

Trading a car in is nothing more than you are selling the car to the dealership. people can do it even if they are not even buying the car, assuming the dealership wants the trade in.

The only aspect to consider if you are buying a new car is that you may lose a tax advantage.

In some states the value of the trade gets deducted from the transaction on the purchase so you do not end up apying sales tax on the trade in value.

For example:

You buy a 20,000 vehicle with no trade, you pay a 7.75% sales tax or 1,550 in tax.

Next you buy the same 20,000 vehicle but trade your old vehicle in and it is worth 9,000.

You pay only sales tax on 11,000 of the transaction or 825 saving yourself some big money in the process.