Anyone know about car sales...trade-in question

[fireberd350]

I recently (3 months ago) bought a 2002 Dakota 5.9 R/T. Well I want out of it. I owe approx $16,500. I would like to get into something that gets good mileage/looks good, possibly a Scion TC which costs about $16,500.

Is this possible without losing my shirt?
Is my only realistic option to sell it privately?
I bought a $1000 extended warranty from the dealer and I was told that you can get out of that and be refunded a pro rated amount. Anyone know of any truth to this?
I also understand that when trading a car in you only pay tax on the difference between the trade in and the new car, so I figure at 6% sales tax I will save $1000 if I do decide to trade it in.
Does anyone have any insight as to what to do? I'm trying to get a few scenarios together before talking to a salerep.

thanks in advance, Steve

 

[John Larkin]

If you trade your car in, the dealership has two ways to make a profit: Either give you wholesale market value for you trade and discount your new car OR give you a stronger price for your trade and charge you full retail for the new car. Your truck in clean condition is worth about $15,000 depending on the mileage (an '02 with under 36K should be considered clean, 37K - 45K would be average and average is about $13,500-$14,000). So you are minimum $1500 upside down if I'm correct. They can roll this $1500 into your new loan as long as you are approved to do so by the lending institution of your choice. As scary as it sounds, just remember your truck will depreciate farther and farther so decide quickly what you intend to do. The dealer is going to make money one way or another; otherwise they wouldn't be in business.

As for the warranty, I don't know.

Good luck with your rice purchase.

 

[phillyturbosix]

get gap insurance and light a match

 

[dodgeball]

I'm a finance manager in milwaukee, you can cancel your warranty if you want to, but they will refund the money to your lender. You would have to ask the dealer how long it will take for them to apply the amount to your loan. At least then you will owe 700 to 800 less on the car. In some cases it will take 30 to 60 days for the lender to apply the refund to your balance. Or just roll the hole amount into your new loan and take the 700 to 800 and stick it into your buick. In WI. you get a tax credit on your trade, so if they showed you 16500 for your car and paid 16500 for the new car you would pay no tax. I dont know the tax laws in your state. I have no idea what you trade is worth.

 

[dan lephart]

I sell

Your best bet on trade value is www.kellybluebook.com trade in value, retail and sell it yourself for $$$ info. Do not expect to get near what you owe. Higher profit margins on used vehicles, the sales tax and fees you paid plus interest plus depreciation over the last three months and market conditions will keep your vehicle value what it is NOT what you owe. Yes you will get HIT! In Ohio trade tax difference only applies to new ... Be well informed and find a sales person you like and want to deal with. I have a customer that walked around the dealership for 45 minutes and selected his sales person by observing and listening. Call ahead and ask the phone receptionist who is going to best suit your needs. A green pea is a pain in the @#%^& go for the seasoned performer. And above all go loaded for bear four hours before closing on the last sales day of the month! Yep that will make a big difference for you!

 

[wlaukaitis]

HI,

I think even though you are trading in, you still owe the 16500 on the truck, someone has to pay it off.

Check out this site

www.carbuyingtips.com

Please post what you think!

I personally like the "The car dealer credit score scam" on the "Car loan Tips and scams" page. This is EXACTLY what happened to me.

I had the money lined up before I went in and they STILL ran a report on me and gave me a line of crap.

I should have walked out.