@@OhReji I'm poor and I've owned 8 cars in my life and every one of them was paid for in cash. I feel like people who make payments are the ones with money 😂
Bottom line is you take less on the trade-in than what you can sell the vehicle privately. What you pay for is the convenience. Many people take this option to avoid the hassle (unknown) of selling their own car.
So how is the amount that the delarship will offer you for your car determined? (I have a 2010 Camaro my loan was 15k I now owe like 10k only of that 15k after how much can I trade in my car for a newer one?
So,in the second Sencario, does the person get rid of the first car loan to get into another one? If the person, can't afford the 15 grand are they driving off the lot with another car loan? Thank you for this video by the way! Very informative.
Business is business, but as long as you know just enough to not get taken advantage of, you should be good :) If the salesman realizes the customer knows nothing, I totally agree most will take advantage of them.. sadly
I bought a 2020 Corolla cash for $28k about three weeks ago but now I want the 2022 which looks to be less $24k at my local dealership , if I were to trade in my 2020 Corolla, how much would I owe remaining
I currently own a 2020 Chevy Camaro that has a value of $27000 with. However, I still need to pay off $12800 for it so I have positive equity. My intention is to trade it for a 2023 Cadillac CT5. Can you please advise me on what to do based on your experience?
Can someone help me here I want to trade in my 2014 challenger n I have payed 10k n still owe 15k n I want to trade it in for a 2013 brz that cost 16,880 how much will I owe if I get the brz ? I appreciate if I get a answer thank you!
Someone please give me advice I’ve never had a mentor but I would really appreciate it. So I have a Kia 2018 which was financed through dealer I got a 4 something rate now I still owe 21k and now I need a 3rd row so I’m going w the pilot. The credit union already pre approved me for 45k at a 2.61 % rate idk if I should refinance rn or just trade in due to inflation but I really want to just get rid of it I seen a nice pilot the black edition for almost 41K
That's not how dealerships work. If you trade in your car(worth $10k) for a car that's worth $25k, they do not subtract $10k from $25k, they add it to it. You won't be financing $25k, it will actually be $35k. The dealership sells your $10k trade in at the auction, the finance company pays them their $25k and you're stuck paying for the new car and the car you traded in. They'll tell you the price went up to $35k because you may have a bad credit score or because financing and taxes. But it's all BS. Your best bet if possible, get the car without trading in your old car. They're still going to get you by asking you for a cash deposit, low ball them by saying you only have $5k or so. Cheers 🍻
I would like to know how would that play out if you're bringing in your car for a trade and you're still in debt but you want to downgrade in your car and the price?
From what I understand they'll give you a dollar amount for your car if they give you $5000 on a car that you owe $1000 dollars on you'll be at a negative equity of $5000 and you'll be paying for the downgraded car plus the negative equity. So if you downgrade to a $7000 car you'll be paying $12000 due to the remaining debt.
Chris Pereyra I would say it’s possible as long as it’s attractive enough for the bank. The finance team in the dealership you’re working with should be able to better guide you and tell you a more clearer answer based on your situation 😁
I don't believe the negative equity example is correct. All you did essentially was make her pay off her loan, then give you her car for free, and charge her full price for a new car. You didn't give her any value for the trade-in. It should be 27K - 8K. Then add her 2K negative equity. For 21K total new car
Kelan Carrigan sure you would pay less for the new car but your loan would still be there if you didnt put the $8000 into paying it off. The way youre saying its as if you’re getting $16000 for the trade in ($8000 to pay the loan and $8000 to take off from the new car) which isnt the case. He explained it correctly.
What if the new car is way cheaper than what you still owe on your own car? My car is a 2015 and I still owe 12,000 but the car I want to trade it for is a 2011 and it’s only 8,000. But also my car is worth 8,000 how does that work?
Are you saying that 8,000 is the trade in value? I think scenario 2 would be applied then. 8,000 (Trade-in value) - 12,000 (Debt) = -4,000 Then 8,000 (New Car) - (-4,000 negative equity) = 4,000
If you go in to buy a car, you can almost always get a discount off the list price. Say I'm looking at a $15,000 used car. To close the deal, the dealer may give me $2000 off. Of course they have this built in to their asking price. If I go in with a trade which is worth say, $ 1000, the dealer may say "Tell, you what. I'll give you $2000 for your $1000 car." I just gave my old car away. Always sell your old car yourself.
How about trading in a financed car with positive equity for a cheaper car worth less than the financed car? Are dealers motivated to do business this way? I want to do this with my 2015 Toyota Camry Le(KBB trade in $12,000) trade in for a 2007 Toyota Rav4($5,000) . Reason being to kill debt from my life.
so for instance, i still owe 24k on my car but they say they’ll give me 38k for the trade in. Would my trade in value be 38k & I use the remaining 14k as a down payment?
@@BigTrip11 Holy shit you ballin fr😂💯but I got a 2016 impala I’m trying to trade after having it a year due to electrical issues. Can you possibly give me some advice on what to do? The car is worth a little over 16k and I owe 15k.
Hi Raymond. Great questions. If you only had your car for a few months, it won't be the best decision to trade it in so early. You will have too much negative equity on the car. The best time to really trade in your car is if you wait until you have positive equity, which is when "majority" of your loan is paid off. But to answer your question, it is possible. You'll just end up paying more unnecessarily. It'll also depend on your credit and if the bank is willing to approve the trade.
That's only one of the elements. People with bad credit do get approved for car loans. There are other ways to make a loan more attractive to a bank, such as a decent down payment.
question, so if I still own say 31,000 in a 2017 model, and thinking of doing a trade in this year, should I go with something new thats close to what I own or higher?
If your trade is paid off, and the dealer asks you "How much you owe on your trade", what's the best way to answer this? Do we tell them it's paid off or can we lie to them saying we still owe $$ on it?
This is the dealers game when you try to trade your car for a used car, they do this to see if you going to be OK with the payment, whatever you own on your current car that stays, and they just add the trade in value on top of what you own, which payment Will be a bit higher.
Very comprehensive and simple breakdown, thx, 👍🏾👊🏾✌🏾🇳🇬🇺🇸
ayo30s Thank you for watching!
Thank you for waking through this in simple and easy to understand terms! It really helped me understand the whole process.
A budding businessman, great job man for the clear explanation on how car trade-in works.
I chose this breakdown video over tons of up to date videos because you explained this situation clear and straight to it. Thank you.
Video was very helpful! Loved the way you broke everything down in simple terms. Thank you for making this video!❤️
Appreciate your work bro. Very simple and easy to understand.
Wow this was everything I needed !! Thank you
Very nice, you educate me so much about trade in. Thank you for this video. 👌
3:04 for us who live in the real world.
Thank you
You mean poverty.
Okay so I clicked to 3:04 guessing it would be for me 😂
Lol
@@OhReji I'm poor and I've owned 8 cars in my life and every one of them was paid for in cash. I feel like people who make payments are the ones with money 😂
NOW I understand this whole trade in car thing, that was super nice to comprehend...
This is perfect! Exactly what I needed/wanted to know! ^_^
I'm glad it helped!
this was the most simple explanation of it! thanks!
Man, thank you! this is the only video that is easy to understand. My confusion is now solved.
Bottom line is you take less on the trade-in than what you can sell the vehicle privately. What you pay for is the convenience. Many people take this option to avoid the hassle (unknown) of selling their own car.
Thanks def needed this explanation. Makes a lot of sense now thank you
Thank you ! This really helped me out a lot!
Great video thank u soooo much! Needed this help
Thank you for this video- it really helped!
Does having a high intrest affect the positive and negative equity?
Does the positive equity come out of the remaining with interest or the pay off amount ?
I wanna know if the 25gran cost of a new car is before tax or after tax in scenario #1?
Bro that was a perfect explanation
Thank you this was very helpful and informative 👍👍
Diontae Daughtry you’re welcome! :)
What if I want to trade in a brand new car that I have only for 6 months? Can I do that?
Do you have to have great credit to roll over 5k on a older sports car you're trying to get?
This helped so much thank you.
So how is the amount that the delarship will offer you for your car determined? (I have a 2010 Camaro my loan was 15k I now owe like 10k only of that 15k after how much can I trade in my car for a newer one?
So,in the second Sencario, does the person get rid of the first car loan to get into another one? If the person, can't afford the 15 grand are they driving off the lot with another car loan? Thank you for this video by the way! Very informative.
Excellent explanation thank you!!
Well that answered my question. Thanks for the explanation
What if u have negative equity that's the same amount as the cars blue book price.is it an equal trade?
So when they charge the taxes and fees? Before they deduct your trade in or after?
What if your car is worth 25k and you want to trade in for something cheaper say 17k for example, how would that work?
Nice... Learned a lot!!
Awesome job dude thanks a lot.
This was so simple Amazing
yeah right NO CAR DEALER is your friend or family .
Business is business, but as long as you know just enough to not get taken advantage of, you should be good :) If the salesman realizes the customer knows nothing, I totally agree most will take advantage of them.. sadly
Fr
Thanks for this. Very helpful
I bought a 2020 Corolla cash for $28k about three weeks ago but now I want the 2022 which looks to be less $24k at my local dealership , if I were to trade in my 2020 Corolla, how much would I owe remaining
What if you have remaining debt on vechile but you want to purchase a car cheaper than what your debt is how does that work ?
I currently own a 2020 Chevy Camaro that has a value of $27000 with. However, I still need to pay off $12800 for it so I have positive equity. My intention is to trade it for a 2023 Cadillac CT5. Can you please advise me on what to do based on your experience?
Can someone help me here I want to trade in my 2014 challenger n I have payed 10k n still owe 15k n I want to trade it in for a 2013 brz that cost 16,880 how much will I owe if I get the brz ? I appreciate if I get a answer thank you!
Please is it possible to trade in your car if you haven't paid off for your current car yet?
How about if my car is worth 10k, can I take 5k in cash/check and the other 5k put in to a new car ?
Thank you very throughly explained
Looking yo trade in my mercedes for a gtr income is high but instill owe on the benz this helped alot thank you
this helped so much
Can i buy the new car first and sell my old car to other private to get the trade in credit?
This really helped❤
Someone please give me advice I’ve never had a mentor but I would really appreciate it. So I have a Kia 2018 which was financed through dealer I got a 4 something rate now I still owe 21k and now I need a 3rd row so I’m going w the pilot. The credit union already pre approved me for 45k at a 2.61 % rate idk if I should refinance rn or just trade in due to inflation but I really want to just get rid of it I seen a nice pilot the black edition for almost 41K
Very simple and helpful.
That's not how dealerships work. If you trade in your car(worth $10k) for a car that's worth $25k, they do not subtract $10k from $25k, they add it to it. You won't be financing $25k, it will actually be $35k. The dealership sells your $10k trade in at the auction, the finance company pays them their $25k and you're stuck paying for the new car and the car you traded in. They'll tell you the price went up to $35k because you may have a bad credit score or because financing and taxes. But it's all BS. Your best bet if possible, get the car without trading in your old car. They're still going to get you by asking you for a cash deposit, low ball them by saying you only have $5k or so. Cheers 🍻
Thank you for making this simple!!!!
Glad this helped!
Yeah dude I plan to Get a cheaper car so when I trade it in hopefully it will be more than the car price
@@shawnsmith564 Sounds like a plan. Best of luck my friend :)
I would like to know how would that play out if you're bringing in your car for a trade and you're still in debt but you want to downgrade in your car and the price?
From what I understand they'll give you a dollar amount for your car if they give you $5000 on a car that you owe $1000 dollars on you'll be at a negative equity of $5000 and you'll be paying for the downgraded car plus the negative equity. So if you downgrade to a $7000 car you'll be paying $12000 due to the remaining debt.
차 산지 2년정도이고 5년 파이넨스인데
Downgrade 하려고 하는데 가능한가요?
Is there any scenario when the car value is higher than the debt?
This definitely helped a lot
Great video! Thanks I just have once question say your behind 2 payments I’m on scenerio 2. Can you still trade in your vehicle?
Chris Pereyra I would say it’s possible as long as it’s attractive enough for the bank. The finance team in the dealership you’re working with should be able to better guide you and tell you a more clearer answer based on your situation 😁
Thank you! Thumbs up for sure!
U doing your thing man! Yeah the taxes and warranty are missing
Thanks! I should definitely talk about those in the next video :)
Can you explain how it would work if you were to trade in with negative equity but for a car that costs less ?
You will still owe.
Great video !!!!
What's the difference between car rules and van rules?
Im thinking about trading in my 2019 ram for a 2020 ram. This video help alot thanks👍
exact same situation for me lol
The perfect video
Very helpful!keep it up
Thanks Allen, I appreciate it! :)
Excellent video
So what if I have positive equity
But I still owe who’s gonna pay for that?
Great job 👏
I don't believe the negative equity example is correct. All you did essentially was make her pay off her loan, then give you her car for free, and charge her full price for a new car. You didn't give her any value for the trade-in. It should be 27K - 8K. Then add her 2K negative equity. For 21K total new car
Kelan Carrigan sure you would pay less for the new car but your loan would still be there if you didnt put the $8000 into paying it off. The way youre saying its as if you’re getting $16000 for the trade in ($8000 to pay the loan and $8000 to take off from the new car) which isnt the case. He explained it correctly.
What if the new car is way cheaper than what you still owe on your own car? My car is a 2015 and I still owe 12,000 but the car I want to trade it for is a 2011 and it’s only 8,000. But also my car is worth 8,000 how does that work?
Are you saying that 8,000 is the trade in value? I think scenario 2 would be applied then.
8,000 (Trade-in value) - 12,000 (Debt) = -4,000
Then
8,000 (New Car) - (-4,000 negative equity) = 4,000
wow! Thank u so much!
If you go in to buy a car, you can almost always get a discount off the list price. Say I'm looking at a $15,000 used car. To close the deal, the dealer may give me $2000 off. Of course they have this built in to their asking price. If I go in with a trade which is worth say, $ 1000, the dealer may say "Tell, you what. I'll give you $2000 for your $1000 car." I just gave my old car away. Always sell your old car yourself.
Thanks for sharking Kirk :)
Great information
Once I trade in my car, do I need to cancel my registration?
No you give it to the dealer. They take care of it.
Hi, is a down payment needed if a person is doing a trade in?
Did you find out, because I still ask that?
Wow thanks!
Hi, you left the tax saving element when you trade in a vehicle
Thanks. Perhaps I can make another video on that in the future :)
Thank you!!!
Great video
Thank you!! ♥️
thanks. that was helpful.
iheartrm glad it was helpful!
What if you owe 30k and the car you want to trade for is 24k?
Can u trade a bike for a car
How about trading in a financed car with positive equity for a cheaper car worth less than the financed car? Are dealers motivated to do business this way? I want to do this with my 2015 Toyota Camry Le(KBB trade in $12,000) trade in for a 2007 Toyota Rav4($5,000) . Reason being to kill debt from my life.
Did you end up doing it in thinking of doing the same thing ? Please respond
@@thenotoriousjoey9956 u ever end up making this move…?
so for instance, i still owe 24k on my car but they say they’ll give me 38k for the trade in. Would my trade in value be 38k & I use the remaining 14k as a down payment?
Yes
How did this work out man? Please respond 😂
@@kgj7102 bought a 2021 widebody scat lol.
@@BigTrip11 Holy shit you ballin fr😂💯but I got a 2016 impala I’m trying to trade after having it a year due to electrical issues. Can you possibly give me some advice on what to do? The car is worth a little over 16k and I owe 15k.
@@BigTrip11 did they add what u owe on your current car to your next car?
Is it logical or even possible for a person to trade in that car when it has only been financed for a few months?
Hi Raymond. Great questions. If you only had your car for a few months, it won't be the best decision to trade it in so early. You will have too much negative equity on the car. The best time to really trade in your car is if you wait until you have positive equity, which is when "majority" of your loan is paid off. But to answer your question, it is possible. You'll just end up paying more unnecessarily. It'll also depend on your credit and if the bank is willing to approve the trade.
@@guahan what about a car I just got but Is paid off
You got any connections in California?
5:22 is where the actual video starts anybody in first 2 cases wouldn’t be watching this video
Thank you for the video because I wanted to trade in my car 😢 but I can't
Don’t your credit have to good too?
That's only one of the elements. People with bad credit do get approved for car loans. There are other ways to make a loan more attractive to a bank, such as a decent down payment.
Nice explanation
question, so if I still own say 31,000 in a 2017 model, and thinking of doing a trade in this year, should I go with something new thats close to what I own or higher?
Joe Justjoe bull.. same numbers were giving to me a couple days ago at a dealer trying to trade my car and they were offering less than what is worth.
If your trade is paid off, and the dealer asks you "How much you owe on your trade", what's the best way to answer this?
Do we tell them it's paid off or can we lie to them saying we still owe $$ on it?
very informative.
Nice ... thanks
Thanks very helpful
I'm glad I can help!
What if: You have a $25,000 car loan. and the trade in value of the car is $20,000.
And you want to trade it for an older car worth $8,000?
Let’s say your vehicle is paid off but the engine knocks somewhat loud... then what?
This is the dealers game when you try to trade your car for a used car, they do this to see if you going to be OK with the payment, whatever you own on your current car that stays, and they just add the trade in value on top of what you own, which payment Will be a bit higher.
Thanks for sharing!