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Car financing

Question for those who work in car sales or financing:

We are interested in trading in our car and purchasing a car cash. We are currently about $5,000 upside down on our trade in. We have anywhere from $10,000-$15,000 cash to spend.

Will a dealership work with us to be able to eliminate what is upside down so we can pay all the cash to the car we are purchasing?

We are trying to decide if it's worth it to go this route or just take $5,000 to the dealership and finance a car for under $20,000.

 
Anonymous

Asked by Anonymous at 3:08 PM on Sep. 8, 2013 in Money & Work

This question is closed.
Answers (13)
  • I do know that trading in they are only going to give you a fraction of what your car is worth. better to sell it private.

    And I agree with buying a used car. My husband went to look at a Porsche dealership. They had a new porsche for 100,000 and the same car that was used and sold back to them for a little over $15,000
    tntmom1027

    Answer by tntmom1027 at 4:25 PM on Sep. 8, 2013

  • If working a deal puts you ahead, the dealership won't do it. I'd pay the loan off, sell the car private party and then take whatever cash remains to the dealership.
    gdiamante

    Answer by gdiamante at 4:33 PM on Sep. 8, 2013

  • I don't work in car sales but we did do something similar when I bought my car. We traded in my husband's truck but we still owed $5,000 more than it was worth, so they tacked on the $5,000 to the price of the car that I bought. 


    So, if you do trade in your car that is worth$5,000 but owe $10,000 and you have $15,000 in cash, then you can buy a car for $10,000 and not have any loans or debt with it.

    JeremysMom

    Answer by JeremysMom at 3:16 PM on Sep. 8, 2013

  • I know that's the obvious answer. But I was wondering if they will work with lowering the price of the new car enough, being that it is cash pay and would in turn, negate the upside down portion. For example, when we purchased this car, we were upside down on our trade in. But instead of tacking on $5,000 to our new car, they tacked on $2,000 and subtracted the other $3,000 from what we were buying. (those are just example numbers though)
    Anonymous

    Comment by Anonymous (original poster) at 3:18 PM on Sep. 8, 2013

  • BUT that was for a new loan, so they end up getting paid more with interest and all. I don't know if they do the same with cash. Make sense?
    Anonymous

    Comment by Anonymous (original poster) at 3:19 PM on Sep. 8, 2013

  • I know that's the obvious answer. But I was wondering if they will work with lowering the price of the new car


    Look, you asked a question and I answered based on my experience. None of use will be able to tell you if they will lower the price of the car (even if one of us works in car sales or financing). The only way you are going to get a correct answer is if you go talk to the dealership yourself. We can tell you yes or no they will do that all day long but it's only a guess or our own experience. 

    JeremysMom

    Answer by JeremysMom at 3:30 PM on Sep. 8, 2013

  • ok. I wasn't being rude. You took it too personally. The question at this point is, will they work with the price of the car more or less when paying cash? A person who works in car financing or sales should be able to answer that question.
    Anonymous

    Comment by Anonymous (original poster) at 3:32 PM on Sep. 8, 2013

  • A person who works in car financing or sales should be able to answer that question.


    Yes, they could answer that for their company or based on their company's policies. There are too many factors to consider (what car you are trading in and its condition, the car you are wanting to buy and how much they either paid for it and if they will still come out ahead, if it is a slow sales month, etc). Again, the best thing to do to get a accurate answer is to go to the dealership and talk with someone.

    JeremysMom

    Answer by JeremysMom at 3:39 PM on Sep. 8, 2013

  • we are planning on going to the dealership. They are closed today. We have to wait until next weekend. But in the meantime, I thought I would ask a general question here to receive general answers.
    Anonymous

    Comment by Anonymous (original poster) at 3:43 PM on Sep. 8, 2013

  • We only buy used, and never finance anything. Not because we don't have the credit, but because cars depreciate so quickly, and my Hubby's a mechanic, and can work on anything. (Thank god). If I were you I would get on track with your current loan, and then sell it out right, and then buy something used.

    Oh and how the hell do you end up upside down on a car anyway? That just sounds ridiculous to me.... Sorry, I've just never heard that before... It seems to me, if you can't afford to pay cash for something outright, then you shouldn't have it. I guess it's priorities, everyone wants something new, and shiny until they have to pay for it....
    MrsLeftlane

    Answer by MrsLeftlane at 3:53 PM on Sep. 8, 2013

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