Financing Upside Down.. Confused

[Anonymous]

First off, HELLO TO ALL!! I've been lurking on these forums for a while and you guys have helped me make a horrible situation into a decent one with room for improvement. So, thank you so much!

Anyway, I was approved for 17,000 100% LTV. The dealer has a few Dodge Chargers for 16,750. That qualifies me to use the check from my lender. BUT, it looks like i will get $500 less than my payoff amount for my current car loan. With my math, that puts me at 17,250 for the Charger. I plan to put $1200 down. That seems like It will bring me under $17,000 but I really got screwed on my first loan (i was 19 and my job was pressuring me to buy a car, sigh) so I want to make sure this makes sense and Im not in for any surprises and letdown. I have $3000 dollars cash to put towards this car but i want to leave enough room to pay tax, title and tags. I think i should be ok, but... Any comments or advice?

[HoldingOntoHope]

Your numbers should work out O.K. Is there any room to negotiate with the dealer on the additional $500 trade in value. Remember the vehicle purchase and the trade in are two separate transactions. The dealership finance department likes to scramble numbers around and just keep you focused on out the door pricing. That's how they make a few extra bucks off of math challenged customers like me. I brought a friend who is an expert in finance to my last negotiation. It took several hours of conversation between her and them (Yes I said her) but when it was over she was able to clearly tell me what I was getting / paying for what. And I was happy with the deal.

BTW Welcome to the forums as a contributing member.

[SamsungHDTV]

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@Anonymous wrote:

First off, HELLO TO ALL!! I've been lurking on these forums for a while and you guys have helped me make a horrible situation into a decent one with room for improvement. So, thank you so much!

Anyway, I was approved for 17,000 100% LTV. The dealer has a few Dodge Chargers for 16,750. That qualifies me to use the check from my lender. BUT, it looks like i will get $500 less than my payoff amount for my current car loan. With my math, that puts me at 17,250 for the Charger. I plan to put $1200 down. That seems like It will bring me under $17,000 but I really got screwed on my first loan (i was 19 and my job was pressuring me to buy a car, sigh) so I want to make sure this makes sense and Im not in for any surprises and letdown. I have $3000 dollars cash to put towards this car but i want to leave enough room to pay tax, title and tags. I think i should be ok, but... Any comments or advice?

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Consider keeping the $3000 to go towards payments instead, depending on how much extra money you have besides this. I decided to keep my down payment in a savings and let the loan draft the account.