Need negotiating advice on a used car with a trade in I still owe on

[glamchick]

Im looking at a used car that is $21K with 30,000 miles.   I am trading in a car that I still owe $5500 on and hoping to get 3K for it.  I was approved for Penfed and DCU at 3.49%.  Still reading on which one is better to use?

Do you think I can negotiate the car to 18k?   Im trying to stay under around or under 23K.   I figured thats how much I would owe with my loan rolled in taxes and tags.

Also, should I tell the dealership I am looking for something around 17K?  They always ask what your price range is and I never know what to say.  Im going by myself so I need all the pointers I can get.  I have been reading everything I can in the forums to prepare.

[Gmood1]

What kind of vehicle is it? Are there no new vehicles in this price range that meet your needs?

The reason I ask is, chances are you'll get a much better rate on a new vehicle. Which could save you money. 1.5 to 2% lower rate would make quite a difference in payments over the long run. Not sure of the length of loan? On 60 months you'd save about $1200 with new car rate.

Research the vehicle's value on KBB and Edmund's to get an idea if it is a fair price. It's normally tougher to nail down a fair used auto price. Dealers make more money off of them than the new cars in most cases.

[glamchick]

Its a 2013 acura with factory warranty on it until 70k miles.  I thought a new car would be higher payments?

[Gmood1]

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@glamchick wrote:

Its a 2013 acura with factory warranty on it until 70k miles.  I thought a new car would be higher payments?

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Not really, not if the same price. Plus you may get cash back incentives with a new car. That may eat up some of the negative equity in your current vehicle. It is possible to get a nice new car that retails above your loan amount for several thousand less than your loan amount. Always push to get your new vehicle at or below invoice. NEVER purchase at MSRP.

Go to Google and input "auto loan calculator". You can play with the rates and loan amounts. Without any guessing you'll know your payments before hand. Never do any add-on from dealer. Get gap insurance or extra warranties through the credit union.

[Anonymous]

Pretty much everything Gmood1 said, and also try to email/get the lowest price at the end of the month, contact as many dealerships as possible, follow the stickies in this forum.  Think about it if you are willing to contact 100 places you can get a good deal.