I have an 05 scion tc and i want to trade it in for something else but i still owe quite a bit on it. How does the trade in and financing process work?
How does trading in your car for another car work if you still owe on your trade in?
You probably owe more than the car%26#039;s worth at this point.
Let%26#039;s say the car you want is 20,000. Your car is worth 15,000 and you owe 18,000.
The dealer will pay off your car and add the 3000 difference to the price of the new car...meaning you%26#039;d pay 23,000. Then you%26#039;ll be even further %26quot;upside down%26quot;. Keep the Tc until you owe about what its worth..maybe another year or 18 months depending on how much you put down.
How does trading in your car for another car work if you still owe on your trade in?
The subtract the amount your trade is worth from what you still owe, and add the balance to the loan for your new car, and you wind up with a high car payment as a result.
How does trading in your car for another car work if you still owe on your trade in?
You end up being what is called %26quot;upside down%26quot; on your trade. The trade in allowance is subtracted from what you owe on the trade in, and the difference is tacked on to your newly financed car note.
How does trading in your car for another car work if you still owe on your trade in?
first before you trade in your car, make sure you don%26#039;t have negative equity, which means that you owe more than what you car is worth. to do this your self, is calculate how much you have put in the car, down payment and accumulated monthly payments. then subtract that from the full price you paid on the car, this is what you owe. next you find the car%26#039;s actual book value. to find that out go here (http://www.kbb.com/KBB/UsedCars/2005_Sci... ) finally subtract what your car%26#039;s book value is from how much you owe. if you owe more than what your car is worth, you will pay that balance on your next car loan
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