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My name is Heather and I just have a couple of questions about trading in cars and getting the best deal. I live in Kansas and my zip code is 67207 if that helps. I have a 2002 Ford Escort ZX2. It has 28,300 miles on it and is in excellent condition. I still owe $10,000 on this vehicle and am wanting to trade it in for a compact SUV. I have been having a hard time trying to get the payments down to a resonable price and just wanted to get some input on that. Its like the dealers do not want to work with me, but yet I have people in my family that have gotten good deals off there vehicles so just want to know how to do the same. And which model would be good for a low monthly payment.
I went and looked at a 2004 Saturn Vue. It was priced at 25,000. I told the sales man what I had for a trade in and he told me that he would give my $6,000 for my vehicle(so that means I would still owe $4,000) but then He was trying to put an extra $10,000 on the price of the vehicle. When I asked where that price came from He said that I had to pay off my car. I don't understand why $10,000 is getting added to the price of the car. I thought it should only be $4,000. I just wanted to see if this guy is trying to mess with me.
On this Saturn Vue and my car as a trade in what do you think that the lowest monthly payments would be? Thank you for your time and your opinion.
Thanks,
Heather
Answer -
Hi Heather how are you? This is not as hard as it sounds believe me I will show you. Fist the price that they gave you for the trade seems fair. I can't give you an idea of what your payments will be on the Saturn without nowing your interest rate or the exact sale price. If you get me those figures then I will be able to calculate the payment.Here is the reason that they attach the 10,000 dollars. They give you 6,000 for your trade which is really not yours so the reason that they attach 10,000 is beacause that is the payoff on your car. For example if there was no payoff. You would get the whole six with nothing tacked on. So that is the reason they attacth the whole ten keep in mind the 6000 he gave you wasn;t yours thats why they tack in the ten. Any other questions please ask and please rate me if you could.
I really appreciate you answering my question. Im still confused. It sounds to me that i would just be giving them my car without getting anything out off it in return. So I would be better off keeping my car and buying the other car because I would be paying for 2 cars anyways. The intrust rate is 0% right now. Also I heard that you want to stay away form the 0% becuase they will raise the price so that they still get the money. Is that true? Thank you so much for your help.
Thanks again,
Heather
AnswerHeather let me try it this way. When he "gives" you the 6 grand for your car. How much of that 6 thousand is yours? None, thats why he puts the 10,000 on the loan so that you can payoff your car. Even though he allowed you 6, none of that money was yours to begin with. Here lets make it even easier. Call me at work and I will talk you through it. 1-800-577-3673 ext 1338.
