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11GT50
Well-Known Member
"IF" the dealer gives you more for trade in than the balance of your loan then the loan will be paid off and the difference can go toward the trade. More likely, when they give you less for your trade than you owe on the loan then the balance of the loan would be applied to the new loan and you would owe that balance plus the balance for the new car - not a good position to be in.
hemistar1
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No the dealer would pay your 18 off and apply 2K to the Gt350 price.. your current car payment may double depending on your finance rate. Hope this helps.
David Schmidt
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It will be interesting to see if you can actually get pre-Covid KBB on your car on trade-in.
Mastodon2k
Active Member
If your car is worth more than you owe, it’ll pay off your loan, and any extra will be yours to do what you want with. If you want it applied to the new car, then the finance department will treat it like a down payment to lower the total loan value.
And just for thoughts: KBB is more accurate for private party sales, while NADA is more accurate on dealer trades. Or at least it used to be a few years ago. Who knows what the dealers are like now, post COVID
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David Schmidt
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Right. It's called "negative equity" and you definitely don't want to live your life that way.
11GT50
Well-Known Member
If you're money ahead and you want a GT350 then go for it. But if you're not you'd be better off waiting until you are and/or finding a good used GT350.
Keep in mind though that a five year, $60,000 loan plus tax, title & license is more than $1,000 a month.
Keep in mind though that a five year, $60,000 loan plus tax, title & license is more than $1,000 a month.
Balr14
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I suggest CarGurus valuation tool. They have been right on for the last several cars I have traded.
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Mustang5ohMan
Well-Known Member
Yeah I’ve always put my positive equity towards the loan. Although on my last car when I had 15k positive (don’t ask me how) I should’ve put half towards the car and kept the other half in my pocket. A GT350 is a nice ride for sure, enjoy it if you get it. No offense also but if you are a bit unsure on how the trade equity works, make sure they don’t hose you on the 350.
FirstGT
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Don't be afraid of getting a carmax evaluation, they'll buy your car even without you buying one from them. Doesn't take much time and is good at any carmax though I forget for how long, 30 days maybe? Or maybe 7 days?
Either way, when I went to dealer they were less than I wanted for trade and car max was enough higher that it even offset the higher taxes by not trading in to the dealer. In the end the dealer ended up coming to within a few hundred bucks of car max offer so I was able to just trade in at the dealer and not make that second stop so I thought that was a nice bargaining chip which I didn't reveal until after the lowball offer.
Either way, when I went to dealer they were less than I wanted for trade and car max was enough higher that it even offset the higher taxes by not trading in to the dealer. In the end the dealer ended up coming to within a few hundred bucks of car max offer so I was able to just trade in at the dealer and not make that second stop so I thought that was a nice bargaining chip which I didn't reveal until after the lowball offer.
Lgb0250
Well-Known Member
There are many places that will buy your car outright. Carmax is not the best for sure. You can get no cost offers that are better from places such as vroom.com, carvana.com, webuyanycar.com. I’ve found Carvana gives better prices for older 3-6 yr old vehicles than the others. I would imagine used vehicle values are dropping much faster than places like kbb and NADA can keep up with since the dealers base their market values off of auction sites now versus even black book valuations which has been the dealers bible forever. They will gladly roll any negative equity into a new loan for you though!!
BimmerDriver
Well-Known Member
Everything written above is true. I'll add that with the virus lockdown stuff going on, used car prices are down and odds are good that any price from an online tool will not be accurate for a while. So don't be surprised if actual offers are less than you expect.
Also, car dealers are always trying to maximize their profits. Nothing wrong with that. But on an expensive car like the GT350 there is a lot of profit built into the price, and they're not moving many right now, so take your time, get multiple quotes from multiple dealers (ignore the trade-in for now) and be patient!
Also, car dealers are always trying to maximize their profits. Nothing wrong with that. But on an expensive car like the GT350 there is a lot of profit built into the price, and they're not moving many right now, so take your time, get multiple quotes from multiple dealers (ignore the trade-in for now) and be patient!
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