Tips on Buying Cars: Trade In Value, purchaser, heather


Question
I don't see how you can think that the 10000 dollars tacked onto the Vue's sale price can be fair.  I mean aren't they going to turn around and sell her car and get even more money that way?  Let me get this straight.....you charge me 10000 dollars on top of the sales price and then get possibly another 7000 dollars by selling the car?  I just don't understand how this is fair.  Now Heather will probably  be in over her head with the Vue by 17000 dollars or more.  As a purchaser, will she ever not be upside down in a car at this rate?  Please explain it to me as I am in the same situation myself.

Thanks,
Liz M.

Answer
You do not own the car. So none of the money is really yours. For example you owe 10,000 and the car is really worth 5,000. they take 5,000.00 away from the sale price then add the payoff back in because you do not own the car. I agree she will never be right side up in that car thats why she should saty in her current car and pay down some of the out of equity if the $10,000 is too much. People bury one car into the next time and time again then wonder why they don't have any equity these are the reasons why :) Please rater my answer, and if you have further question just ask!