Tips on Buying Cars: Trade-In and financing, ford explorer sport trac, ford explorer sport

Question
Hello Douglas, I currently own a 2000 Chevrolet S-10 pickup truck and I am ready to upgrade. I know my Blue Book value and I owe less than the value. My credit is A+ and I am able to afford the vehicle of choice. I am in between favoring a Jeep Wrangler or a Ford Explorer Sport Trac. In either case I would like to buy used in the years somewhere between 2000-2004. My credit union wants to finance me but I wanted to ask a third party a few questions. Can I get an auto loan greater than the amount of the vehicle in order to pay for some additional modifications such as a suspension lift? This will also be my first time trading in, what can I expect with my value being greater than what I have left to owe?

Thank you,
Devin

Answer
Well as far as getting a loan for a amount greater than what the car is sold for it is possible. It will depend on the value of the vehicle you buy and your credit. It sounds like you will not have a problem at all. If financing through your credit union they will work with you. I do recommend checking around and seeing what the best interest rate available to you is.

As far as trading in you can expect to get near kbb trade in value. If you owe say $3000 and it is worth $4000 and the car you buy selling for $12K then your trade difference would be $8K add the $3K for your payoff back and you will be financing $11k plus tax, tag and title. Now if you owe less than it is worth selling it out right may be an option as you will get more for it as you can sale it for retail value instead of trade.

I just recommend doing your research, shopping around and being a smart consumer. When buying used always have a mechanic look at the car before you buy it and run a carfax report on it. Good Luck and feel free to ask me anything else.

Brad
http://www.buyingacar101.com The Site For Buyers!