Thats what I was thinking. I wasnt sure if equity really applied since cars depreciate so fast.
-
ODT Gun Show this Saturday! - Click here for info and tickets!
Trading a vehicle that still has payments?
- Thread starter bsmith104
- Start date
First thing you need to do is call your current lender and get a 30 day payoff amount. That is the amount that will payoff the entire loan before another payment is due with interest included. Then check NADA to find out what your vehicle is worth. There are 4 value categories on NADA. Rough Trade, Average Trade, Clean Trade and Retail. Any lot you deal with has a Black Book that is issued I believe every month. That is what the used car manager will go by. But you can bet they will most likely show you NADA and try to get your vehicle at the Rough Trade value. Rough Trade is close to the wholesale price in most cases.And that's all they want to pay.
But it's important to know what you owe versus what it's worth before you go to any lot. You might have equity and be in a better trading position. Unfortunately, that isn't the case most of the time and you will have to roll some negative equity into your new loan. AND...if you do that make damn sure you're getting something you really like that is gonna last because you're gonna be in it for a good long while.
But it's important to know what you owe versus what it's worth before you go to any lot. You might have equity and be in a better trading position. Unfortunately, that isn't the case most of the time and you will have to roll some negative equity into your new loan. AND...if you do that make damn sure you're getting something you really like that is gonna last because you're gonna be in it for a good long while.
that's how people become upside down in a loan and your stuck. how much money are you going to save on gas. I don't think it will balance out with interest and payments. sure you just don't have new car fever?
All depends on your situation.
I have gotten out of leases before and into a nicer SUV for same or minimal payment ($25/month).
My last was trading in a 2013 Explorer Limited lease w/ 2 years left for a 2014 Explorer Sport lease. $25 more a month and a sign and drive deal. No additional $ out of pocket, no Neg equity rolled over.
I have gotten out of leases before and into a nicer SUV for same or minimal payment ($25/month).
My last was trading in a 2013 Explorer Limited lease w/ 2 years left for a 2014 Explorer Sport lease. $25 more a month and a sign and drive deal. No additional $ out of pocket, no Neg equity rolled over.
Try to sell your truck outright (Private sale) if possible. I always seem to come out better that way- I've said it before, I dislike car dealerships- who in their right mind would finance a car for 72-84months?
That a big sign that you cant afford it!
That a big sign that you cant afford it!
Leases have always made me nervous. How long did you have the 2013 model and how long is the term for the 20014? DO you have to worry about mileage and overages?
Usually you provide the lenders info and they call and get a pay off after you have haggled with them on the price of the car you want to buy. You never go in telling them that you want to trade in and you still have payments. You lose leverage that way. After you get them down on the price or if they wont go any lower then you start asking what they would give you on the a trade in. You dont tell them you are still making payments and then have them appraise it for you. Make sure you dont take it in looking beat up otherwise they think it will need detailing work extensively. You may be able to get them to pay off the balance of the loan you have as the trade in then you wont have to roll anything into the loan on the newer car. Go toward the end of the month as they are more likely to make deals since they will need to hit their quota. Plan on being there a good 3-5 hours for an effective deal.
Good info here.
Another tip is if you HAVE to trade your truck in and you are upside on it try to get a car with some rebate money, that will help you out.
