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Joined: Jan 2005
Posts: 125
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Joined: Jan 2005
Posts: 125
HOW DO CAR TRADE INS WORK IF THE CAR IS NOT FULLY PAID OFF?

Joined: Aug 2004
Posts: 168
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1997 Toyota Celica GT
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1997 Toyota Celica GT
Joined: Aug 2004
Posts: 168
I think they give you the money and you pay the rest off. Or they just send the money straight to the bank.

When I sold my car it wasn't paid off, me and the buyer went to the bank where I got the loan from and paid it off. The the bank gave us the lien(spelling?) release.

Joined: Jan 2005
Posts: 41
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2000 Toyota Celica GT
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2000 Toyota Celica GT
Joined: Jan 2005
Posts: 41
it's like this, if the car you bought is 17000 and you still got 15000 left; you go trade your car in for a 12000 car and they buy yours for 12000; they'll add that 3000 from your car that you still owe to the car your getting; so pretty much the car your trading in for will be 15000+tax,title,etc. correct me if i'm wrong but that's what i know from a guy that told me how it works

Last edited by toonie; Apr 2, 2005 10:01pm.

Joined: Jan 2005
Posts: 125
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I am confused. I am trading a celica in a dealer for a tc.

Joined: Aug 2004
Posts: 168
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1997 Toyota Celica GT
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1997 Toyota Celica GT
Joined: Aug 2004
Posts: 168
How much do you still owe and how much is the TC? And how much are they quoting you for the trade in of your car?

Joined: Apr 2003
Posts: 1,917
Blue MnM
2003 Toyota Celica
Blue MnM
2003 Toyota Celica
Joined: Apr 2003
Posts: 1,917
Originally Posted by toonie
it's like this, if the car you bought is 17000 and you still got 15000 left; you go trade your car in for a 12000 car and they buy yours for 12000; they'll add that 3000 from your car that you still owe to the car your getting; so pretty much the car your trading in for will be 15000+tax,title,etc. correct me if i'm wrong but that's what i know from a guy that told me how it works

yup you're on the money

maybe if i put it an equation, its easier to understand

example:
current car and still owe = 20,000
trade in value = 15,000
---------------------------------
what you will owe = 5,000


cost of new car = 25,000
what you owe from trade = 5,000
---------------------------------
actual cost of new car = 30,000

this is called, being "upside-down" on your loan


on the other hand, if the trade in value is higher than what you owe, they will deduct it from the cost of the new car.
does that make better sense to you?

Joined: Jul 2002
Posts: 10,110
05 WRB
2005 Subaru WRX STi
05 WRB
2005 Subaru WRX STi
Joined: Jul 2002
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the difference between what the car is worth and what you owe on it is subtracted from the cost of the new car.
unless of course, you owe more than the car is worth, then it's an upside down car


SUBARU TECNICA INTERNATIONAL

Joined: Jul 2004
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Specialist
Specialist
Joined: Jul 2004
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If you owe a lot more than the car is worth, your deal may not go through. You might have to arrange alternative financing & make a lump sum payment when you make the purchase to makeup for the shortfall.

It sucks when you trade-in a negative networth car, it makes it that much harder to get a head on your next vehicle. thumbsdown

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