Car Trade in advice...

[Brian2by2]

Ok, so I'm going to trade in my truck for another one. But here's the thing. The truck I have is going to set me upside down. I owe about $14000 on it and the dealership will probably only give me $9500-$10000 TOPS.

The truck I want to buy is $12,900.

I'm willing to pay more for the new(er) truck, but how can I work that into my financing? Banks usually only finance 20% more than you pay for the truck, which would only be $2500, which still means I would owe about $2000.

Is there anyway around this? Is there anyway I can get a loan to cover the new truck AND what I owe on my old one?? I can afford the payment, I just want and need a bigger truck.

Thanks in advance guys! I'm new at all this!

 

[apapada]

if you're upside down, don't do it, don't trade your truck in. Either sell it on the private market for about what you owe, have someone take over payments or keep it. By trading a vehicle while you are upside down on your loan, you're basically "paying the dealership" to take it off your hands...

 

[hlweyl]

Keep the truck. I went through the same thing when I was younger and learned it's always best just to keep what you have even if it needs some repair. You have an NSX, what more could you want?

 

[vintagecarman]

Either sell it on the private market for about what you owe, have someone take over payments or keep it. By trading a vehicle while you are upside down on your loan, you're basically "paying the dealership" to take it off your hands...

I agree with apapada that you should sell your truck for retail. You'll get closer to your pay off amount than trading it in.

I would also suggest calling your bank and arranging the loan before you work with the dealer. It will take more effort but in the end you will be in much better shape. I'm in the business so if you need any more advice, pm and I'll give you my #.

Best of luck.

 

[ANYTIME]

Ok, so I'm going to trade in my truck for another one. But here's the thing. The truck I have is going to set me upside down. I owe about $14000 on it and the dealership will probably only give me $9500-$10000 TOPS.

The truck I want to buy is $12,900.

I'm willing to pay more for the new(er) truck, but how can I work that into my financing? Banks usually only finance 20% more than you pay for the truck, which would only be $2500, which still means I would owe about $2000.

Is there anyway around this? Is there anyway I can get a loan to cover the new truck AND what I owe on my old one?? I can afford the payment, I just want and need a bigger truck.

Thanks in advance guys! I'm new at all this!

Devils advocate here. Say you buy the truck for $12,900 and roll your negative equity into the purchase and you borrow $16,900. Most banks won't lend more than 110% of value because of this> Your truck is parked and someone creams it (or that telephone pole jumps out in front of you), and its totaled. The bank gives you the value of $12,900 and you owe the balance of $4000 to be able to walk away from it. Not that this is going to happen when you buy it, but if you start off way upside down, the payoff will always be thousands more than it is worth. It will depreciate faster than you can make payments and it will always be upside down, because of you rolling the negative equity into it. Certainly you could double up on payments, but most make the minumum payment required. Dang, I've been around dealers way too long!

 

[vintagecarman]

Devils advocate here. Say you buy the truck for $12,900 and roll your negative equity into the purchase and you borrow $16,900. Most banks won't lend more than 110% of value because of this> Your truck is parked and someone creams it (or that telephone pole jumps out in front of you), and its totaled. The bank gives you the value of $12,900 and you owe the balance of $4000 to be able to walk away from it. Not that this is going to happen when you buy it, but if you start off way upside down, the payoff will always be thousands more than it is worth. It will depreciate faster than you can make payments and it will always be upside down, because of you rolling the negative equity into it. Certainly you could double up on payments, but most make the minumum payment required. Dang, I've been around dealers way too long!

This is true if you trade your truck into the dealer.

Sell your truck for retail and get a loan pre-approved at your bank. When negotiating with the dealer tell them you have cash and work them on the selling price. Remember that auto sales are way down, they need yor business.

 

[NsXMas]

Keep the truck. I went through the same thing when I was younger and learned it's always best just to keep what you have even if it needs some repair. You have an NSX, what more could you want?

True words of wisdom

 

[ZR-1 NSX]

Do some more homework. The dealer won't even give you payoff for your trade and more than likely you'll pay more for the used truck your wanting to buy. In effect, you'll be upside down twice. Once on the traded vehicle and then on the used truck your getting . The only thing the dealer is doing for you is providing a convenience of one stop shopping at a huge expense to you in the long run. Look for the same truck you want on a variety of private owner sales magazines and get a good idea at what is the average selling price. No sense in buying a used vehicle from a dealer when there are probably loads of the same vehicle on the market in your area.