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Discussion Starter · #1 ·
To any financial wizards on the board, I was curious about something. Let say, I wanted to trade in my cougar to get a SpecV SE-R. How would I go about that without ending up paying two car loans?
 
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Usually the dealer will pay off what you owe on the used car and deduct that from what you get on the trade-in. Bad deal if the car is worth less than what you owe.
 

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Yea, find out what your payoff quote is from who ever financed your Cougar. (Ford Credit, your bank, credit union, ect). Make sure to get yoru exact pay off quote, it is much lower than if you added up the rest of your payments because you take off a lot of money for interest. But some places make you pay a penalty for early pay off.

Then find out what your car is worth, I would do two things to find that. First check kbb.com. Then take it to Auto Max, if you have one near by, and tell them that you want to sell your car and you want to know how much they will give you for it. They will go over a few things, check this, check that, you know the usual. Then they will test drive it and then give you a quote that is good for 100 miles.

Now you know what you owe, and roughly what you can get for your car by trading it in. If you are too upside down on your payments, meaning that you owe say 15k, but you can only get 11k for a trade it, you are better off trying to sell it out right. Taking a loss of more than 2k is usually a bad move.

If you are not upside down then you know your leverage. Go to the dealer that you want to buy this new car from and start talking numbers. Do NOT tell them that you plan on trading in a car, where you plan on financing it through, and how much you plan on putting down. Also never play into the "where do you want your payment to be?" question that EVERY sales man will give you. Screw the payment, deal strictly with the bottom line...the price of the car. Personally I would recommend you scouting out fiancing and interest from other sources like your personal bank, credit union, or any other bank that is offering great interest. That way you know what you are looking at, and you will be able to figure out all your numbers before you even get to the showroom.

This way the sales man knows less than you, not more like they usually do as far as the numbers go.

After you get the price of the car where you want it, then you spring the trade in on him. This really works if you owe much less than the car is worth, that way you really get to stick that money to them.

Prime example, when I was working on my Cougar, I already knew where I was going to finance it with a LOW interest rate. I already knew what invoice was for the base car and all the packages. I went in and worked the deal that I wanted, then told them about the trade in. They hate that because they went down as far as they wanted you to think they could go, then you spring this on them and your trade it dollars will work against the lower price as opposed to the higher price that they would have told you had they known you were planning on trading in a car. They like to over price the car and then tell you that they will give you 5k for your $2 car to make it look like you worked a great deal, when in fact they already planned on losing the 5k but figured that telling you it was because of the trade in you would be happy.
 

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Discussion Starter · #4 ·
thanks dudes, I'll keep those in mind when the SE-R come out. Although, I'm still not sure about buying coz It's been just over a year since I started making payment so I'm pretty sure that I still have a long way to go, but I'll try to find out what my pay-off quote is. Thanks again!
 
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