Quote:
Originally Posted by edkwon
If I wanted to purchase a new car and trade in my old one, but say my old one still has $1000 worth of payments left for example:
Most dealerships will take the car as long as you pay them the unpaid difference and they will take over payments and the bank will send the title directly to them, right?
Ed
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Sorta, it depends on the value of the trade-in.
Honestly, trading is something to avoid unless you can afford to do it out of convenience.
Unless the dealer hides the money for a trade in an inflated sticker on the new car a dealer is going to only offer you the same on a trade as they could buy the car at for auction. This way they have a choice of either 1. blowing it out at auction or 2. selling it for a profit.
And since most dealers need to operate on margins in the neighborhood of $2k+ on used cars in order to make a profit, that means they are going to typically offer you a couple thousand less than someone will eventually buy that trade for (and that's where auction prices normally are, give or take).
So the best thing to do financially, is to advertise and sell your car privately.
What's the year/make/model and mileage of the car you are getting rid of?
You can check KBB.com for a reasonable assessment of value.
Kev