Originally Posted by Baldie
I just need financial advice if possible:
I have a $25k car I'd like to purchase. I would like to trade in my current car. Its blue book value is about $13K but I still have about $17K on my loan. I found out after I purchased the car that I bought the car for a little more than what it was valued at. Now my question is how will the dealer work this out? Will I have to shell out a downpayment if I do a trade-in or will I be able to walk into the dealership and pay nothing that day??
I'm betting different dealerships will handle this differently. I see ads for guys saying they'll take your trade, no matter how much you owe on it. I know if I were a dealer I wouldn't let you drive off without a large downpayment after trading it in. $0 down is quite common, but I've never heard of a -$4000 downpayment.
Also note that you're not going to get anything near bluebook value for your trade. Even if they tell you they'll give you KBB value for your car, they'll just tack it on to the price of your new car. It's tough turning a profit selling them for what you bought them for.