Laura asks…
Ok, if i trade in my car then if i still owe money after the trade in value do they jus add whats left onto my
Ok, if i trade in my car then if i still owe money after the trade in value do they jus add whats left onto my new loan or what is the deal with that?
CSC101 Customer Service answers:
Yes. Right now you are up side down which is how they say you owe more than what the car is worth. Also watch buying a new or newer car were the difference is put on your new car since you will have to get gap insurance.
Jenny asks…
Would it be possible to trade my car in for a car that is worth less than the trade-in value?
The trade-in value is $4,300. So would it be possible to trade my car in and get a car that is less than the trade-in value and have no car payments? Also, i still owe on my current car.
CSC101 Customer Service answers:
Just because blue book value is 4300 on the car doesnt mean the dealer will give that to you. They will generally probably offer you $2500 – $3000 for it. It depends on the market and how well used cars are selling. It is possible to get a car that is less than the trade in value but if you end up having negitive equity its hard to tell if a bank will loan on the particular car your looking at.
Mark asks…
Does a trade in value of the car get added to the total price of a new car?
If the black book value is 12,000 and I owe 12,000ish… is it an equal trade or do they add the 12,000 I owe to the total of the new car? I hope this makes somewhat of since, I don’t know how to put my question into words on paper.
CSC101 Customer Service answers:
In almost every state:
(Price of car you are buying – trade value) = net taxable price of the car. To that number you add the payoff amount + sales tax on the net taxable price + title and doc fee to get the total amount financed.
The reason I included this formula is to show you that it’s NOT a wash trading in a car with a similar payoff amount. You get to deduct the value of the trade from the price of the new car before calculating sales tax. So, if you are buying a $20,000 car and trading in one worth $12,000, you only pay sales tax on the $8,000 difference, not on the $20,000 new car price.
Check with your dealer to see if you get “sales tax credit” in your state. If so, trading in can save you a lot of money in sales tax.
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Information about used car trade in clunker - questions answered here.