Trade-In Question

Discussion in 'Motorized Vehicles' started by TheArnski, Sep 19, 2012.

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  1. TheArnski

    TheArnski Notebook Evangelist

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    So just a bit of background, I've got a 2007 Chrysler 300. Got it back in 2007. It was brand new, literally, only 3 miles clocked in on the meter. Ever since then, I've taken care of it and I love it. It's in great condition and still runs like the day I drove it off the lot. But now I'm thinking of parting ways and trading in for something new.

    The thing is, I still owe on the car. I'm not sure how the trade-in process works on a car that is still in the proces of being paid off.

    For all you car gurus out there, can you clarify this process for me? Have any of you guys done this and came out of it with good results?
     
  2. ajkula66

    ajkula66 Courage and Consequence

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    Define "good results".

    When we were told that my wife was carrying twins, we traded an unpaid, almost-brand-new Jetta for an Odyssey minivan, given that we already had one child and that VW was not going to cut the mustard anymore...from what I recall, we took a $6K+ hit on the Jetta, with excellent credit and both of us working decently-paid ($75K/year) jobs. That was quite some time ago, and the times have likely changed, but not necessarily for better unless you have stellar credit and some $$$ to put down.

    The key question here is: how much do you owe on the Chrysler? Get that info from the financing company, preferably in writing, as a "one time pay-off" sum.

    Then go to NADA website and see what you're likely to get from a dealer for your car when traded in.

    Although by no means an exact science, these procedures will give you somewhat of an idea where you stand.

    My $0.02 only...

    Good luck.
     
  3. TheArnski

    TheArnski Notebook Evangelist

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    Ahhh sweet. Thanks for the detailed response! +rep

    As far as "good results," I guess I mean something along the lines of the process went well and your new monthly on the new car wasn't far too different from the monthly on the car you originally had.

    Last I checked, I owed about ~$11350k on the Chrysler. I just checked the NADAguides and these were the results with the number of miles I have on it (about 47k only).

    - For a clean trade-in: $11,950
    - For an average trade-in: $10,875
    - For a rough trade-in: $9,575

    My car would fall between the clean and average prices. The entire car is in near-perfect condition. The only reason I say "near perfect" is because on the passenger rear quarter panel, there's a dent from a couple years back. Long story short, came out to my car after dinner and found somebody had kicked the the quarter panel in. I have no idea and was never able to find out who did it. Anyways, we tried to pop it out and now it just looks like a bunch of small dents. That would be the only thing bringing the value of my car down.

    My cousin is trying to help me figure things out and he said that if I take a $1000 loss on the car, I should still be able to pull out a financing deal that puts me near my current monthly now.
     
  4. ajkula66

    ajkula66 Courage and Consequence

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    Well, there's a lot that will come into play there, including but by no means limited to:

    a) The vehicle that you're interested in - and how much of a "hot seller" it is.

    b) Geographic location

    c) Your credit

    d) Position of the planets within the solar system at the moment you start negotiating the deal...and much more...:D

    You essentially have no equity in that car to speak thereof...making your negotiating position less-than-perfect, but not that bad IMO.

    Once again - my two cents only - and good luck.
     
  5. TheArnski

    TheArnski Notebook Evangelist

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    hahaha thanks for your reply, again. If I do go through with this....I sure am hoping the planets are aligned PERFECTLY...haha.
     
  6. Micaiah

    Micaiah Notebook Deity

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    I'd expect them to give an initial trade-in number of $7000 - $8000, and if you push them hard enough, probably end up at $10000. Unless you somehow end up owing considerably less than what the car is actually worth, dealers will find a way to put you at a negative equity situation.
     
  7. Tsunade_Hime

    Tsunade_Hime such bacon. wow

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    I thought some dealers if you still owed money on the trade-in would add it to the current car you are buying?
     
  8. TheArnski

    TheArnski Notebook Evangelist

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    Ahh yeah I can see what you're saying. I definitely wouldn't put it past them to do that.

    But as afar as the initial trade-in value, from what I've heard, I probably would expect to get more than that $7k-$8k. My cousin mentioned that he brought his Nissan Sentra (I forget the year) in and it had a broken AC and a huge dent on the driver side bumper and he said they still got $5k for it. Then again, like I said, I probably wouldn't put it past them to lowball it that low, either...lol

    I did some looking up and you're right. If you still ended up owing money on a trade-in, they would just add it to the cost of the next car.
     
  9. Micaiah

    Micaiah Notebook Deity

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    Negative equity can be rolled over, but it makes it harder to get good APR because most lenders have a set limit on what they will finance (Most are around 110% of the new vehicle's sticker price). If you are only upside down on the previous vehicle by $1000 or so, it's not a big deal, but if you're talking $4000+, most dealers will ask for extra down payment so your APR doesn't skyrocket.
     
  10. ZaZ

    ZaZ Super Model Super Moderator

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    If you've got a car that runs great and you like, why get rid of it?
     
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