You are under no legal obligation to tell them your payoff amount, and you can always say “I don’t know, but you can find out with the lender,” and see what they offer.
Is it bad to trade in a car you still owe on?
You can trade in a vehicle even if you still owe money on its loan. They’ll pay off the remaining loan balance on your trade-in and obtain the car’s title directly from the lender. If you have any positive equity in the vehicle, it will be used as a down payment toward your new lease or purchase.
What if you still owe money on a trade in?
If your auto loan payoff amount is more than the dealer is willing to give you for your trade-in then you will still have to pay off what you owe on your old vehicle even if you trade it in.
Why do dealerships want to know if you have a trade in?
It may tell the dealer that you’re desperate to get out of the vehicle and into the next one. They may take notice and not be as flexible on the next car’s selling price because they may see that you’re in a rush. A dealership that notices you’re desperate to get out of the vehicle may give you a lower offer.
Can I trade in my financed car for a cheaper one?
It is possible, in many cases, to trade in a financed car for a cheaper one, but it really all depends on your situation. Consumers trade in cars all the time on which they still owe money. In fact, very few people actually wait until their vehicles are paid off before purchasing their next one.
What’s the best way to negotiate a car price?
Follow the advice on my website and get car prices from several dealers. Make sure each dealer gives you a total price that includes all options and add-ons. You should be able to find similarly equipped vehicles and then you can ask dealers to give you their best overall price (including add-ons) to win your business.
Is it a good idea to trade in a leased car?
Trading a leased car is usually not a good idea. The reason is that most people will not have any “equity” in their leased car to help them buy or lease a new car. Regardless of what the dealer promises, there are too many potential problems.
How to negotiate the price of car add ons?
Consider whether you really need it, or if can you buy it elsewhere. In the majority of cases, if the item is optional then say NO. Follow the advice on my website and get car prices from several dealers. Make sure each dealer gives you a total price that includes all options and add-ons.
Do you have to be happy with car dealership price?
Don’t be bitter, or feel disenfranchised, or get upset that the dealership is going to make money off your purchase, and that the salesman is going to benefit from your sale. Be happy, because it’s quite possible that you can get a good deal, and at the same time the dealership can make money, and the salesman can make a living.
