Question: If I owe $9,000 on a car, and a car dealer gives me $7,000 for my trade-in . . . will the $2,000 difference be added to the negotiated price of the new/used car?
March 15, 2007
Hello Tony
Tony to quote from your website InsiderCarSecrets.com:
"If you owe more on your vehicle than you can get on a trade-in, then you must add the difference left over to the new or used vehicle you're purchasing!
"Do you understand why you must ad your 'pay-off' to the bottom line? Some people get confused on this, and expect the dealer to cover the 'pay-off!'
"The 'pay-off' is the amount remaining on YOUR loan! This is money that YOU owe! Not the dealer! So when you trade in your vehicle, that balance must be paid off or the bank will not release the title to the dealer you're trading your vehicle to!"
Can you clarify for me; if I owe $9,000 on a car and a car dealer gives me $7,000 for my trade-in . . . can or will the $2,000 difference be added to the negotiated price of the new/used car?
Thanks for your help.
Roger P.
Answer:
Hi Roger,
The $2,000 has to be paid on top of the price of the car either in cash or refinanced in the new loan. The deal breakdown would look as follows:
Selling Price of the New Vehicle
+ Tax and Title Fees
- Trade-in Allowance
+ Payoff on Trade-in
- Any Cash Down
= Amount to Finance
All my very best...
Tony Iorio
For 