Tips on Buying Cars: buying less expensive vehicle, decent value, dim view


Question
will a dealership trade for a vehicle worth more than the one i am buying? if not what would be the most effective way to sell my current truck?

Answer
First, my apologies for taking so long to answer- jury duty, a good friend passing way and Mom being rushed to the hospital has made for a rough week.  Yes, there's no reason why a dealer shouldn't take your vehicle in trade and give you cash back if the one you're buying is worth less than what you're trading in.  The tough part is finding a dealer that will give you decent value for your truck, as they're not getting any cash in the deal (in fact, they're paying cash out to make it work).  Of course, any loan balance on the trade would have to be paid off; if you owe more than your current vehicle is worth, then that balance would get carried over to the new vehicle.  That most likely means you would then a LOT more on the newly-purchased vehicle than it's worth, and banks are beginning to take a dim view of that.  The good news is that, in most states, such a transaction means you'd pay zero sales tax.