This doesn't sound right does it?

[*Efjay*]

Not sure where to post this so will try here.

I am looking into cars ATM & was crunching numbers with a car yard today.

I owe 14k on my current car. The car we are looking at is 38,990. They are willing to give me $9,500 as my trade in. Leaving $4,500 on my pay out figure.

Now the guy told me (knowing I need to pay out my car being 14k) that with 9 & half that would bring the new car down to 29490. Add the 4500 to pay out my car completely & I would then be borrowing 33990.
Following?...

Thats not right though is it? If they are giving me 9500 as my trade in, that isn't going to come off the new car's price its only going to go towards paying out my 14k that I owe on my current car. So really I would actually be adding 4500 onto the new cars original price of 38990, pushing the amount I need to borrow up 43490, right?

We can't afford to go that high. he has stuffed up hasn't he? We were going to go back in the morning to work out finance but its not worth the drive if I am right & stuffed up his figures...

[Fleur]

I see what you mean & I think you're right...not 100% sure though.

He might be looking at taking the $9,500 off the new car but forgetting that you still have to repay it to your lender.

I'd give them a call in the morning before you drive back out there.

[kawazuki]

no he is right
as they are giving you 9500 for your car so that comes off the car price.

then your balance so when you refinance the remainder will eb removed will go on

so technically they are only giving you 5k off the price of the car.

you will only owe the number they gave you

as they will on sell your care for more than the 9500 they are giving you so they are infront...

[*Efjay*]

so umm can you explain how it works a little more slowly for me.. Im not understanding how the price will come off the new car & pay out what I owe? Sorry a bit dumb tonight LOL

[melbel]

You are right FJ....he was deducting the 9500 twice....once off the car price and then once off your loan amount, so in effect double dipping. If you take the 9500 off the car price that comes down to 29490 but you will still have the 14,000 outstanding on your existing loan...hope that makes sense....

[misty]

I think you might be confusing yourself (you are certainly confusing me )

If you trade in a car, you generally don't get any money to pay off the old debt as such, it simply goes towards reducing your new debt - unless you are refinancing the old debt at the same time (which you will likely have to do if the car is security).

Either way you total debt would be ($38,990 [new car] + $14,000 [old car]) - $9,500 [trade in] = $43,490.
The guy trying to sell you the car cann't do basic math.

[kawazuki]

sorry i missread your post...

you are right.

[*Efjay*]

ahh yeah I thought I was right. LOL he did say early on when we took it for a drive that he doesn't know how to read. I thought he was kidding...
You know what is a bugger. He said if I left a deposit today then that would have locked in that figure. But when I called DH he wasn't comfortable doing so (seems I only mentioned the car yesterday & he hasn't even seen it) & that we would come down on Saturday together. I wonder if I had left that deposit if he would have to just suck up his mistake & honour it? After I said DH didn't want me to put a deposit on it he spoke to his manager who said its ok we'll hold that price till tomorrow still. hmmmm you think I can make them stick to it with a verbal agreement only LOL

[ShootingStar]

What type of car are you looking at getting and do you currently have? We just purchased a new car through a friend who is a wholesaler.. he bought it at auction for $26K, where they were going to list it to the public for $32K. Have you tried bargining the prices with them? Car sales men with try and get what they can for a car.. but if you say youre going to go elsewhere, they may try and work with you to get the deal iykwim.

[*Efjay*]

We are looking at a hyundai iMAX. Its an 09 with 30000kms on it. What Ihave is a 04 kia carnival. My trade in & my problem. No one will touch the kia. Its apiece of ****. They know it & I know it so really to be offered 9500 is pretty good. They imax is overpriced, they are listed for 28 to 32 k else where but I know my trade in is the issue so not sure I can really push the price down?