Trade in Values?

Question

I am having problems with my car and am considering trading it in. The value of my car in Kelly Blue book is between 9,000-11,000. If I still owe 14,000 on it what will happen if I trade it in. My car is a 2005 sedan with 51,000 miles on it. I bought it as a used vehicle and always get the oil changed, but it recently started over heating. I also work as a nanny who gets paid cash. Do you think I will have a problem with trading in my car?

Answer 1

is the kelley blue book wholesale value the $9000? an appraiser uses Kelley blue book to determine what the bank will give a loan for on that particular car and they also use auction values to see what that particular vehicle has been bought for most recently - if the wholesale blue book is $9000, you can expect between $5000-$7000 for your car from a dealer which means that you are going to have a bunch of negative equity to carry over into your next loan which will make you payments shoot pretty high - you may be stuck with that vehicle if you can't come up with some money to cover the negative equity or if the negative equit makes your payments higher than you would like - good luck

Answer 2

I agree that you may want to weigh your options before you make any final decisions.

The over-heating problem could cause major problems if the dealer finds it. They will either give you a lot less for the car, or not want it at all. The cost of the repair may be your best bet, bring it to a reputable mechanic to get an estimate of how much it would cost to get the car repaired.

If you owe more on the car than what it is worth, then yes they will add it on to the price of the new vehicle. But you need to make sure the new vehicle plus the added left over price of your current car is worth that amount. The bank will not finance a car for more than it is worth.

Also, if you have no proof of income, the bank will probably require a co-signer, unless you already have established good credit.

Get your repair estimate and also check out your trade options to see what your best bet in your situation will be.

Best of luck!

Answer 3

Trade-in value vary in certain area's. But I can tell you that you are over mileage. Best thing to do is to list everything you would want (options, type, gas mileage, etc.) on a vehicle and start shopping. There are numerous web sites to help. Find what you want and get trade numbers and negotiate from there. Bottom line is the trade difference and how the vehicle you are buying books out. Now financing is another story. If you can't prove income, you are going to have problems

Answer 4

You are upside down on the value of the car. The dealer will add what you owe to the loan on the new car. The interest rate that you pay will be more because they are taking more of a risk. Since you are getting paid in cash, do you have a source of income that is reported? That would establish your ability to repay the loan. They will also look at your credit history, if it is clean, then that will help too.

Good luck.

Answer 5

maybe not,all they will want to see probably is proof of income ,but the amount you owe on it may be transferred to the newer car,you might want to have the over heating problem fixed,because if they test drive it and it does this ,they wont want it for a trade in,either that or they probably wont allow much for it,if that's the only problem your having with it ,and its a good car id consider repairing it,and keeping it,that would be cheaper than going farther in debt,good luck on it.

Answer 6

yes