Can I trade in my new Honda for a Subaru?
I currently own a 2014 Honda Civic si coupe and I'm not satisfied with this car anymore(don't judge please) and want to trade it in for a 2015 Subaru wrx. I still owe about $22,225 but the salesmen at Subaru dealership said pay it off for 6 more months which will bring my loan down to $19,501.
The salesmen said my car is worth $12000 and I was just shocked in how she valued my car and she didn't even take a look at it yet. I only have about 7000 miles on it but by the next 6 months I'll probably have about 14000. I checked kbb to value my car and it says it's worth about $17,305. Is it possible to get that trade in value price from subaru because I don't believe my car is worth 12 grand. And how does this trade-in work? The Subaru is about $32,495 and I will have a down payment of $10,000.
Any help is greatly appreciated!
Trade-in value is whatever the dealership will give you. Just like pretty much everything else during a new car purchase, the trade-in value is negotiable.
If you don't like the deal they give you, don't buy from them.
But personally I suggest keeping the Civic until it is at least paid off. Adding debt on top of more debt just keeps you upside down on car loans longer and you will end up paying more in interest.
If you think you can get KKB book value for the car sell it yourself.
Sell it yourself you'll have to find someone willing to take over payments. Getting out of your loan. Then buy the Subaru. The dealers smell blood won't get anywhere near the resale when you trade in knowing you want out
The only value that you will be given for your Honda is the Manheim auction price--the salesman's "little black book"--and the values are significantly lower than KBB, Edmunds, etc. You'll be lucky if you get 75% of KBB's loan value for yours.
Even if your car is worth $17K as trade in, you still owe $22K, which makes you $5K upside down, which means you can't trade unless you have $5K cash to fully pay off the old loan. If you wait 6 months when you'll only owe $19K, the value of your car has also gone down, to about $15K. So you would still be $4000 upside down.
Sell your car to KBB for $17305, pay the difference to the lien holder, then go buy your Subaru.
This is why people like you who buy new cars should have bought used instead.
You need to get over this urge to trade. You will still be paying for your last urge for another year or so.
Stay the heck out of dealerships. They don't care about you. They just want to make money off you.
Your Honda will last you another 20+ years easy.
Stop spending money you don't have to buy something you will be tired off again in 6 months.
https://www.daveramsey.com/blog/drive-free/
http://www.badcreditcash.net
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