So i got a 04 TL 5AT with 33k miles on it. I still owe the bank $16k. I want a new car, since i owe the bank some money, how does the trade in work? If i trade it in do i still have to pay off the 16k i owe? How does it work when your trading in a car you still owe payments on? Thanks...

 

You trade it in, the dealership pays off your loan.

 

IF your car is worth 16 grand they will pay it off or if its lets say worth 15k they will pay the 16 and put the $1000 extra onto the next car. I doubt its worth less then 16 but I can't see the car. NEVER EVER roll money over into another car. I used to collect on past due loans and I would see 2 year old F150's that owe 40k and just think...HOLY SHIT!

 

:ibmovetocartalk:

The car company figures out what your car is worth, subtracts that from what you owe, then adds anything that is left over to the price of the new car. If you owe $16K and your car is worth $10K and the price for the new car is $30K, you will owe $36K on the new car and the dealership takes your old car. If your old car is worth $20K, then the price of the new car is $26K and of course they still take your old car.

 

I've seen someone roll almost $20k.

 

I have no idea how people do that shit. I swear I am sticking to used cars my whole life. I would feel sick to owe someone more then 40k for a money pit.

 

this is the first time I've ever bought a brand-new car. Showroom demos/loaner cars FTMFW.

 

If you do owe more than it is worth, make sure you get Gap insurance on the new car to cover your butt.

 

How has this not been moved to car talk yet?

 

The question has been answered thoroughly. So... what are you getting?

 

memorial day weekend

 

Do a google search for "four square dealer" and you'll find more then enough info on how the car dealer work w/ regard to a trade in...

 

thx all, i will search for that, Im planning to trade it in for a 04 Escalade

 

Depending on where you go you could have positive or negative equity. Really you should have positivie equity of about 2K$. Take the 2K$ and use it as a downpayment towards the new car.

 

Wow.. do you have any particular reason of getting Escalade? or is it just for bling-bling type of thing? I thought you were enjoying your TL. Didn't you put several mods?

 

Are you ready for the increased maintenance, decreased gas mileage (by almost 70%!!!!!!!!!!), and body work (surely when someone keys the car for driving an SUV).

I would pass on it. Whay in the world would you get an SUV when you probably don't need it.

 

^^^ do people really key suvs just because they are suvs???

 

Someone didnt get the memo on gas prices

 

04 Escalade? Why?

 

oh boy i may just hold onto my car as long as i can.

 

Yes, all the time actually. Plenty of assholes in the world. You DO live in New Jersey, i'd imagine it happens hundreds of times everyday there.

 

Escalade good one, hes joking!

 

How are you going to afford the gas in that thing?

 

probably will work 2 jobs

 

Depends on what they give you for your trade. If they give you $15K, then they will roll the extra $1000 into the new car. If they give you $17K for it then they will take $1000 off the amount you finance.

Based on KBB, it seems like you will probably get just about what you owe on the car, so it will probably be a complete wash.

 

If the dealer uses Galves then, he will probably get $11k for the TL.

 

They should be keying vettes, NSXs, mustangs and other sports cars that get similar SUV mpg too.

Spare me the "I know this guy who gets 35 mpgs on the highway!!111" Yes, I know sports cars can get good mpg - Im just commenting on the hypocrisy of it.

 

WOW. That would be enough to make me keep teh TL.

 

Might be worth taking it to a couple of dealerships and Carmax if you have one. I have traded in numerous cars and have been quoted a difference of 6K from one stealership to the next. They say they all get their info from the same place but that is BS.

 

at least you don't have to put premium in the escalade

 

They do. Black Book. The level of douchebaggery is what varies

 

'04 Escalade + not knowing how a trade-in works = FAIL

Simple math.

 

04 He wont even have the option for flex fuel, not like it really matters. When and if you get it you gotta put 24 chrome spinners on it and gucci interior