Tips on Buying Cars: trade ins, trade values, mini van

Question
Aaron,
Thank you for your time.  My husband wants to trade out 2001 mini van in for a newer one.  We still own about $3000.00 on it and I am hesitant to trade it in.  How would this work?  Who would pay the pay off?  The van is worth about $5,000.  How much is usually given in trade in value?  Thank you
Tanya

Answer
Hi Tanya,

The dealership pays the payoff to the bank. Anything they give you above the payoff amount is usually just used as cash down. You should check kbb.com / nada.com / edmunds.com for approximate trade values. Expect to be offered less than the lowest one. You may want to CALL a few places that you might be willing to buy from and ask them for an approximate trade value as well as pricing on the new one. The better armed you are with info, the better deal you'll end up getting. If you're near New England, I can help you more. Otherwise, good luck!

Aaron