Car Trade-In: How does it work?

[ahabion]

Hey folks,

So my wife and I are wanting to trade in our car and downsize into something cheaper (minivan, small SUV, something...) and wanted to know how a dealership car trade-in would work.

Here are the numbers:

1.) We owe about $18K left on the car.
2.) Car is kbb.com worth $11k dealership trade in value, $10.5 private sales
3.) Prospective car price range we'll be looking at is about $5k - $8k.

I know that we'll have to come up with some money upfront to pay the difference for the car, but I'm not totally sure what happens inbetween as far as the value of my trade in and the cost of the "new used" car and if that'll be rolled in and stuff like that.

Thanks in advance and reps for helpful advice!

ahab

btw: MODS, not sure where this post should('ve) gone so I thought this would be the best place... please move as necessary.

[X-Runner]

Say you owe $18,000 even, they give you $10,000 even. The car you buy is $7,000. You will owe a total of $15,000 plus whatever fees/taxes. You will be financing $15,000- whatever you put down/they require down.

[slowinmidga]

Say you owe $18,000 even, they give you $10,000 even. The car you buy is $7,000. You will owe a total of $15,000 plus whatever fees/taxes. You will be financing $15,000- whatever you put down/they require down.

Yup and you will just be even more upside down than you already are unless you are putting down a huge down payment.

[Slomaro Z28]

Yup and you will just be even more upside down than you already are unless you are putting down a huge down payment.

That and the payment between 15k and 18k isn't gonna be much cheaper.

[1SICKLEX]

Yeah at that point it doesn't make any sense to trade in. An estimate is for every $1000 you owe on the car it will add $50 to the payment.