How to Evaluate Your Vehicle Trade-In Options

Getting The Most Out Of Your Trade-In


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Before you visit ANY dealership, it’s always a good idea to know where you stand in your trade-in vehicle. There’s no more awkward moment for the consumer or the dealer than when the moment of truth comes…when you find out what your vehicle is worth versus the amount of money you owe on it.

Payoff vs Value


A common misconception is that the payoff on your vehicle has some relevance to the vehicle’s value. This is simply not true. These two numbers have absolutely nothing to do with each other, so do not be confused.

Today, many people with a balance owed on their car are “upside down”. You’ve probably heard that term before. Being “upside down” means simply that the balance owed on your car is greater than its value. Many dealers also refer to this as “negative equity”. You will see the terms upside down and negative equity throughout this report. A payoff is the amount of money you owe on your vehicle.

Before you go shopping for a vehicle, you should have a good idea where you stand in your trade-in, to avoid the shock of finding out AND to make sure the dealer is treating you fairly. Below, I will walk you through exactly how to get a good idea on whether you are upside down, or if you have equity.

Finding Out Where You Stand


We need two numbers to evaluate where you stand. The first number is the exact payoff. Whether you purchased the vehicle on a retail contract, a lease, or a balloon note, there is always a payoff that can be obtained by talking to your lender. All payoffs can be gotten immediately during normal business hours by phone, and many times they can be gotten online. I will give some common payoff numbers at the end of this. Simply call your lender and tell them you need the payoff on your vehicle. Have your account number ready to give them, although some can do it by social security number.

The lender will give you either a ten-day payoff OR your current payoff today, and tell you how much to add per day until the vehicle is paid off. Keep this number, we’ll need it later.

STEP TWO is to get a true value on your trade-in. Unfortunately, none of the big web-based sites are accurate. They can be off by a lot AND the values could be either high or low, there does not seem to be a pattern. Sites like Kelley Blue Book make their money sells ads online and selling your information to car dealers.

As I say on the air, a car is only worth what someone is willing to write a check for, and KBB doesn’t write checks. There are many places who will give you a free cash offer, and typically they are good for seven days. Our Certified Dealers will give you a bid, and there are a number of large used car operations that will do it also. Do a Google search for “we buy cars” and your city to see what pops up. CarMax is in many cities and they have a good process for free offers.

Determining Factors


There are a lot of factors that determine whether you can trade or not. Let’s look at a few scenarios:

  • You are less than $3000 upside down. You are in pretty good shape to trade and should not have any problems. Most lenders understand and will let you roll that amount into a new loan. Plus, on most vehicles today, there is enough in rebates to cover that amount, so you end up breaking even.

  • You are $3000 to $6000 upside down. It becomes a little more difficult to trade and to get a lender to allow you to roll that much negative equity from one loan to another, you will need to have a better than average credit rating. You might also want to choose a car with a larger rebate.

  • You are over $6000 upside down. These deals are even more difficult and you may need some cash down payment to go with your car. You will also need to have good credit. Understand too that rolling this much negative equity can have a huge effect the next time you go to trade.



Other Things to Consider


Rolling money from one vehicle to the next can have a snowball effect. In other words, every time you do this, your situation gets worse.
If you roll a lot of money from one car to the next, make SURE you are buying a car you like. Odds are, you’ll have to keep it longer, so be sure it is desirable to you …you’ll be looking at it for a while.

Rolling negative equity from one vehicle to another will have an adverse effect on your new payment. For instance, if you roll $5000 from one loan to the next, on 60 months at 5.9% you will add $100 per month to the normal payment.

You can cover up more negative equity in a lease than a purchase. But understand if you do that, it will more than likely take a longer time to trade the next time, but at the end of the lease, you’ll be completely even if you stay within your mileage.

Gap Insurance


If you roll any negative equity from one loan to the next, be SURE to purchase GAP insurance. This will cover any deficit not covered by insurance should the car get stolen or totaled.

Work toward getting even. If you roll negative equity, in essence, you end up paying for your old car AND the new car at the same time. When you can, send in extra money with your monthly payment to lower the pay off faster and get into equity quicker.

If you are upside down and are in a position to put money down on your loan, DO IT. You’ll get equity in your trade quicker, enjoy a lower payment, AND save interest charges.

Avoid the Negative Equity Cycle


I met a customer some years ago that kept rolling negative equity from one car to the next, to the next and so on. She rapidly traded about four times in three years. To make matters worse, she drove a lot of miles. When she got to me, she owed $72,000 on a vehicle worth $40,000. To this day, this one takes the prize for the most upside down person I have ever seen. As in most of these cases, she met the day of reckoning. She put $20,000 down and leased a new Explorer for two years at $1200 per month. Although this is an extreme case, after the two years were up, she was level with the world and able to start over. We put her in a lease plan to get a new car every two years and she is about to come upon her third new vehicle since that time. She has not been upside down since.

Bottom Line


If you are upside down, you are in good company. Understand that NO DEALER can make your negative equity go away. They can play numbers games to cover it up, but rest assured you are still paying for it. Knowing how much negative equity you have is a valuable tool when going to buy a new vehicle. And lastly, you cannot roll negative equity from car to car to car without it catching up to you. At some point, it gets overwhelming and you get stuck, so plan ahead.



Photo Credit: Cherezoff/Shutterstock
chris
I currently am financing a 2016 dogde journy sxt...looking to trade it in....they have a 2014 awd rt fully loaded with 45ooo less kms

is it a smart move? i am lost
The Car P.
I think it is worth looking at numbers. If you can get a lower mileage car with more features and trade even or close to it, I think it would be a good idea. That assumes the 2014 has a clean history report.

I hope it works out great!

Jerry Reynolds
Ree
I have a 2017 Ford Fusion Se with 30k miles. I bought it new. I owe $26k on it and not sure what it's worth. I would like to get out of it due to personal reasons (cosigner and I have parted ways and I'm trying to sever ties) but not sure if I can. I don't want to keep getting deeper and I'm not giving him the satisfaction that I failed if I let it go back to him. Help?
The Car P.
We need to find out it's true value and I'm not sure where you are located, so I'd run it by a CarMax if you have one nearby. If you can let me know their offer, I can tell you a lot more.

Jerry Reynolds
Mario
I have a 2018 Camaro 1LT RS with roughly 14k Miles, the interest is high and so are my payments. I am looking to downgrade for a vehicle that is more suitable and affordable. I still owe 32k on the Camaro and I am looking to get into a 2013 Jeep Wrangler. Depending on my my trade in value I'm looking at about a 6k neg equity roll over. I'm attempting to purchase the Wrangler (2013) for 18k, also going to try and go in with a co-sign for lower interest. What are your opinions/recommendations?
The Car P.
Mario, you really need to know exactly where you stand. Not sure where you are, but if you have a CarMax within driving distance, get their free cash offer and your exact payoff and let me know what the difference is. Odds are a co-signer won't help, but it could and might be worth trying.

Jerry Reynolds,
Chrisrobby1001
I have a 2013 Sonata with 90k miles on it, I owe about 11k on it but the car is only worth about 5k, however my biggest thing is my interest rate. I have a high interest rate of 22%. I was so desperate and I regret it so much that I got in this loan, I'm almost 3 years in and the balance isn't moving, its a 66 month payment that started 2/11/2017 I got the car at 55k miles I believe....I don't know what to do because if I continue to keeo paying my 360.43 payment every month im going to loose out on so much money and by the time I pay it off the car wont be worth nothing. my credit has gotten better since 2/11/2017 but so far I cant refi the car because its too upside down and my credit still needs work....any advice?
The Car P.
Sorry to hear of the issue. You need to stay the course and not try to do anything. A year from now the payoff will be lower for sure, and the car is past the point of much depreciation. These things can right themselves pretty quickly. In the meantime, if you can send any extra money in with the payment, that will drop that payoff much quicker.

Jerry Reynolds
Bp
My girlfriend has a 13 Chevy Cruze she bought new with a high interest Santander loan she still owes 9k and has high mileage. we went to several dealers and they are all offering about 2K
She has 2K to put down with a 640 Fido score. What do you recommend.
The Car P.
$2000 on the Cruze sounds low, but even if $3000 is the trade value, with $2000 cash she's still rolling $4000 into a new loan. Given that, she'll need a vehicle that has nice rebates. Right now Ford and Chevy have the best rebates, so I'd go with one of those. Use my dealers from our website, they'll do everything possible to help.

Jerry Reynolds
Jessica
I have a 2014 BMW X5 and I currently owe $33K, $3K of that is from negative equity on a trade and another $5K is the warranty I bought. The car is roughly worth $19-$20K. That is a horrible $13K in negative equity. I love the the X5, but honestly, it's so expensive to repair and it has already had multiple repairs, half of which the warranty company is refusing to pay for. I was considering getting a $12-$15K car and adding on the negative equity to equal what I owe now and just deal with the fact that I am paying substantially more than it's worth, but I was told that there isn't a bank that will do that. Is this true? Should I just hang on until the warranty is up and hope they pay for most of the repairs? I would love to pay most of the negative equity off, but that just isn't possible right now.
The Car P.
Jessica, you need to hang on the the BMW. You are being told correctly that no lender will roll $13,000 from one loan to another and even if they would, you could end up with a vehicle with much worse problems than you have now.

I would just hang on, a year from now this could look differently.

Jerry Reynolds
.
I have a 2009 Infiniti G37 with around 143,000 miles on it. I still owe somewhere around $13,000 on it. Dealerships have offered only around $4,000 at the most. So this leaves me with around $9,000-$10,000 in negative equity. The car is in pretty decent shape I've just been wanting something a little different for the winter. Most dealerships have wanted me to put down up to $10,000 down at time of purchase. My question is should I just suck it up and keep the car. Or is there any other options out there that I could look into for purchasing a car.
The Car P.
Honestly, only time will cure this. Keep making payments and babying the car. The good news is most of the depreciation is gone, and with each payment the balance will drop quicker. This could look much better a year from now.

Jerry Reynolds
K
I have a 2017 Jeep Wrangler. I�m looking to downsize to a smaller more efficient car. I owe 29k on the jeep. The car I�m looking at is 18k. How would that work?
The Car P.
It depends on what the Jeep is worth. If you are breakeven in the Jeep, you’d just be financing the $18,000 plus taxes. If the Jeep is worth more than the payoff, your equity would be deducted from the $18,000. If the Jeep is worth less than the payoff, that amount would be added to the $18,000.

I hope this helps.

Jerry Reynolds,
Corrine
I have a 2008 Honda Accord with 93000 miles on it. I still owe $8000 on the car. The car itself is only worth $3000. However, the car is pretty rough everything runs decently but the front end is damaged, the passenger side has been side swiped. I just don't want to pay for a whole new body. Would it be reasonable to get a newer 2015 Honda for 17,000? Or would I just have a lot of negative equity?
The Car P.
Corrine, the answer to your question is yes, you can get a nice 2015 Accord for $17,000 maybe even a little less depending on miles, however that $6000 from the old Honda has to be added to that, so keep that in mind. I have some great Honda dealers all over, give them a try.

Jerry Reynolds
Molly
I have a 2017 Ford Explorer with 24,000 miles and about $5000 negative equity. My husband and I have a friend who works at a car dealer and wants to lease us a 2019 Honda Civic and at the end of the 3 years we would have no more negative equity....thoughts?
The Car P.
Molly, that $5000 is going to jump the new Honda payment, but if the payment is comfortable, he is correct the negative equity will be gone. Think long and hard about the difference in room you will lose. Your Explorer is really low mileage, so give this serious consideration. If you trade and don't like the Honda, you'll REALLY be stuck.

Jerry Reynolds
G.C
I have some questions . But I'm going to start off with this.....my car has more damages since the storm we just had here in Kansas a tree fell on my car with approx $5,000. Of damages. But that is not my Insurance adjusters quote they will go with their lowest quote which isn't much by the time they take off the deductables I have two separate claims against my car the second one is about $4, 000. Again that is not my adjusters quote. These are quotes I got. ? 1. Does damages to my car put me upside down farther than what I originally was?
?2. I have been told to do nothing with my damages and keep the money. Or put it to my car payment. Is this a good thing to do? ?3 I was told that if I don't put the money on to fix my car then once I have a accident that will total my car out the gap will say that since I didn't fix the car they will extract the prior damages and say we're not totalling the car because you didn't fix the prior damages.and we will have to pay all the insurance money we got to gap. Is this true?. ?4. Is my car worthless now and unable to use it as a trade in? All because everyone saying don't do nothing and so I don't it's putting me deeper upside down and still paying $544.00 with no way out. And I still owe 22.000 yes I do have 0% intrest. ?5 Again from what I was told that the insurance will write the checks out to me and the car dealer since my husband will not pay the deductable. Is this true? ?6. Will it be better for me to go ahead and see what I can do to get out from under this car close out all my coverages and use the insurance and the coverage money to put towards another car? Or should I keep in this car until it's so bad that I can't do a thing with it and still be paying on it? Now the value is poor now versus the fair it was. Is your advice still the same now????
The Car P.
You need to get the car fixed by a reputable body shop. Not fixing it is in violation of your finance agreement, and if the lender finds out, they will take the car and you'll have a repossession, which will haunt you.

You are going to be in this car a long time given how upside down you are, so get it fixed properly.

Jerry Reynolds

G.C
I am back. I have damages to my car I do have gap and other coverages. As you remember I am upside down with $22. Thousnd something let to pay. I have two separate claims. I put my car in the shop to get fixed but I was told not to. And my husband wanted me to take my car to a fly by night shop to save money and deductables. I used the person before and was not happy. So now I'm faced with a $1.000. But have to pay two separate times of 500 each. I am wondering if I made the best move to have my car fixed? Or should I have tried to get the least amount the insurance will pay if I didn't fix it. Or getting the most by having it fixed. And I know that if I don't have it fixed then I'll get less on gap if my car got totaled the insurance would say you get less from gap because you didn't fix the car so the car wouldn't get totaled out and I'd have to pay back all what the insurance gave and still be in the car. It sounds like that I'll just ask for one of the damages to get fixed and ask for the check for the other. And pay the deductable on one of the damages. Please help me to know what to do. Thank you
.
I have a 2018 GMC Terrain AWD with 18K miles on it and my husband has a 2017 Dodge Ram Big Horn with 33K miles on it. We were looking to trade one or both in on a GMC Acadia and GMC Sierra truck and doing a lease on both. Is that smart? We're looking for financial relief due to purchasing a new home and not having sold our old one yet (9 months). A local dealership has a lease sale going on right now so we wondered if leasing would lower our payments even with the negative equity in both.
The Car P.
It will really come down to the value of the two vehicles versus the amount owed. Since leases are shorter term, negative equity has an adverse affect on payments. Not sure where you are located, but check my website to see if I have a GMC dealer near you to look at numbers with.

Jerry Reynolds
Wc
I owe about 8000 and want to trade my car is only worth 6000 I'm trading for cheaper car that's 4000. How will I end up in this situation
The Car P.
It should be fine, $2000 is not too bad. Just make sure the $4000 car won't cost more in repairs than the $6000 car costs you now.

Jerry Reynolds
G.C
Hi. I have a 2016 Carrola. I keep getting papers in the mail from car dealers they are all telling me the same thing but they don't fallow through on their word that's written on paper. I am upside down like between 9,000 -11,000. I own approx 21, 000. 0% interest. , car payment is 544.03 month. I'm told that if I cancel all my coverages and take the money put it towards the upside down and pick out a vehicle that has a high rebate. It will help me get most or almost all the negative equity gone. I was also told that it could give me interest. On the vehicle, plus bring my payments higher. I'm in a quandary on what I should do. My car does have damage of approx 3, 000. This excludes the cost for parts and paint and labor. Total cost is nearly $ 5,000. What is my best option. When I first started out I trades my car that had only $1,000 loan against it. The dealership kept playing me and if I would have realized what they were doing I would have not let them blind me about all the trade ins one after another I was so blind and ignorant about stuff like this. But now I learned not to fall for their traps no matter what they say. One dealership sent me a promise that they will pay off my car and give me $23,000. For my car but when I took in the paper that had a signature on it they turned me down they wanted money from me instead to get a not her vehicle. Help me know what I need to do please.
Amy P.
G.C. don't do anything at all. Even at the $9000 upside down, it's not smart to roll that kind of money into a new loan even if a lender would allow it. If you trade, you'll immediately be $13,000 upside down and it'll be even harder to trade down the line.

You smartest move is to just hang on. The payoff will come down faster with each payment and eventually you will be closer to break even.

I wish I had better news but continuing to chase numbers will only frustrate you more.

Jerry Reynolds
G.C
Ok. I'll trust what you say. And I'll stick with it. My car has damage of about $3,000-5,000. I'm in the process to working with my insurance to fix it. I am told once I fix it my value will go up from 9,000 to 10,000 or more. My mileage is little over 40,000 I was told that in order to bring it up to positive equity is to not drive my car for two years. Many have told me to keep my car but I can't put no extra money to help bring it to positive. I pay 544.03 I have nothing much left to do any more. I found out that 11, 000 got tagged on the original price of my car. And what caused more of my upside down is due to all the coverages that got added. I was told that with my fair credit I built up will help get me into a newer vehicle with lower payments that I can afford. I'm told that with all my coverages and value of my car and all the incentives and rebates will help. I need your input about this. Yes many people are saying to stay in my car but also they are saying I'll never get out from upside down no matter what I do because how the car dealer put me so far under. I am actually at 22, 300 left owing my car at time of sell was just a tad over 20,000. And by the time they were done. I didn't realize I had to pay $39,000 plus. My disability check is gone once I pay my car payment that don't include car insurance. I can't get ahead at all no matter what I do it looks like. Please I need straight to the point upfront honest advice. I am being bombarded by car dealers like crazy. I can't get them off my back. is really stressing me
G.C
By the way thank you for responding back with me.
The Car P.
My advice hasn't changed at all. First you are listening to too many people, and from the sound of things, they don't know what they are talking about. If you can get the car fixed by the insurance, by all means do so. And yes, you will come out of this, it will just take time.

Jerry Reynolds
Rob M.
Hello,

Looking for some advice. I have a 2017 Chevy Malibu. Dealer trade-in quoted me at $10,650 for a trade-in value. I currently owe $19,000 still. Car is in good condition, never had an accident, basic wear and tear. Mileage is at 41,000. Is it worth exploring a lease to help? I'm looking to lower my monthly payments (about $500/mo).
Amy P.
Rob, adding almost $10,000 to your next loan will account for almost $350 per month to a normal payment on whatever you will buy, and that assumes a lender will let you do so, which is highly unlikely. I think you are best to find a way to make the current payments until the balance owed comes much closer to the value of the car.

Jerry Reynolds
R.Clark
Hi! My husband and I have a Ford-F450 with 190,000 miles on it and 24,000 left to pay on it. It has been giving signs of issues, randomly shutting off, black smoke and other minor things. We want to trade it in but its value is only 13,000. We are scared that if it stops working we will be left with this huge amount of debt and nothing to show for it. We don't know what to do.
Amy P.
If your numbers are correct, there is really no way to trade it. I would figure out how to get it repaired, there is just no way to roll $11,000 into a new loan. I wish I had better news.

Jerry Reynolds
Tvisha
Hi
I wanted to trade in 2015 Jeep Cherokee, but have $15000 loan to pay and current value is $10500 (as per kelly). I am trade in with Mini Van (worth 15 or 16000). Is it advisable to do that with around 4000 as negative equity
Amy P.
$4000 is not terribly bad, but if you can wait until the payoff is closer to the value, it would be wise. Your Jeep may be worth more than you think also, Kelly Blue Book is seldom accurate.

Talk to one of my dealers, if they can help, they will.

Jerry Reynolds, President
Car Pro Radio Network
Fiat girl
I have a 2014 Fiat 500l trekking. We have had it for 2 years and it has started giving us so many problems. It shakes under 40mph while accelerating, the gears refuse to change sometimes it's just overwhelming. We still owe 13500 on it and the Kelly blue book says it's value is about 7000. I really want to get rid of this car any suggestions. I had an Altima for 5 years and I've never had so many issues like I have with this Fiat. Please help. Thanks in advance.
Amy P.
Honestly, only time will fix this. I wish I had a magic answer, but Fiat resale is horrible. You never hear me talking about them, and there is a good reason. Try to send in an extra money you can with each payment, that will lower the amount owed much quicker.

I wish I could be of more help!

Jerry Reynolds
Jennifer
I Have A Dodge Dart. Owe 19,000 on. It's a 2015 with 55,000 miles. Valued it at 9,000. Are there any lenders that would go in with 10000 in negative equity?
Amy P.
No, that's not possible, or smart to do even if you could.

Send any extra money you can in with each payment, that will help lower the payoff much quicker.

I'm sorry this happened to you, only time will fix it.

Jerry Reynolds
Lauren
I have a 2015 Equinox with 109K miles the engine went bad, and it isn't covered under warranty. I still owe $7,000, and the car and is worth roughly $6,000 if I did a private sale and we didn't' have the engine problems. Is it worth repairing the engine in the vehicle ($4,100 for a used engine 90,000K miles or a new engine $6,800). Or should I just put a substantial down payment on a new vehicle and roll the remainder into the loan. I'm kinda in a pickle.
Amy P.
Lauren, I would recommend trading it as is and covering the deficit in cash. My fear is you'll put an engine in it and other problems will continue. Sometimes the early loss is the least loss.

Let me know how i can help.

Jerry Reynolds
Alice
Hi there!
I have a 2017 Subaru Outback, which was in an accident in December. (My fault, front end collision, damage estimated at $14k to be repaired.) My dealership is repairing it and is expected to be done next week. My question for you is whether I should trade it in fairly quickly after I get it back, or if I should keep it and see what happens? Any idea how much the value will depreciate for the trade in value? Prior to the accident, my car had no issues, being new and all. Any advice is appreciated! Thanks!
Amy P.
Alice, I would plan to keep it and see how it does. With technology today, you may never know the accident happened. After that, if it isn't the same, then holler back and we'll look at options.

Jerry Reynolds
.
I have a 2015 Nissan pathfinder with 60000 miles. Kbb is giving me a trade in value of around 11000, but I owe ~27500. I was interested in trading for a smaller used vehicle and payment, but I'm thinking that's probably out of the question from my research so far. Is there any advice or tips you could give?
Amy P.
Trying to add over $16,000 from one loan to another without a LOT of cash to go with it, will be impossible. Even if it were not, it�s not a good idea. Check out my article on owing more on your car than it's worth here:

When You Owe More On Your Car Than It's Worth

Jerry Reynolds
Car Pro Radio Network
Jasmin
I have question I have 2014 Hyundai Sonata I owe 12,587 on it I’m trying to trade it to get a Dodge Challenger how would I go by this
Amy P.
Hi Jasmin! You can check out Jerry's advice about what to do if you're upside down in your vehicle here:

When You Owe More Than Your Car Is Worth

Thanks for the question and listening to the show!
Nisha
I have a 2014 Chevy Tahoe I still owe $20,000 but looking for something cheaper (monthly payments) a Buick for $13,000. Can I do that?
Amy P.
Nisha, without knowing what your Tahoe is worth OR which Buick you want, I can�t tell you. Contact your nearest Car Pro Buick dealer from the certified Dealer page at our website.

Certified Dealer Search

Jerry Reynolds, President
Car Pro Radio Network
Claudia .
My husband and I are shopping for a new car and we are questioning whether to trade in our 17 year old Ford Expedition or our 10 year old Toyota Highlander hybrid. My husband wants to trade in the Highlander because he's afraid the battery will go out soon. The Ford has about 175,000 miles and in ok condition. The Highlander has about 245,000 miles and in good condition. What is your opinion?
Car P.
Good to hear from you. I would get rid of the Explorer, you are already past the expected mileage if should have gotten. The Toyota will need a battery pack at some point for about $4000, but that is going to be a LOT less than what you?d spend keeping the Explorer running.

Let me know if I can help further.

Jerry Reynolds, President
Car Pro Radio Network
Penelope .
I have a 2012 dodge avenger. I owe a little under 12k on it and I've been to several dealers who have all said they would only do 3k for a trade in which would leave me with quite a bit of negative equity. I really want to get in to a newer car with lower miles but I'm not sure how to go about it where my payments won't be super high. Would it be better to try and refinance to get lower payments and then get a separate new car loan? I'm not sure how to get in to a different car without paying tons more.
Car P.
Good to hear from you. There is no magic answer here to be honest. The $9000 you are upside down has to be dealt with, it won?t just go away. Your best bet is to keep the Avenger, send as much extra money in with the payments as you can, this will reduce the payoff much quicker, and a year from now, this will look very different. The good news is your car will not depreciate much in the future, you just need to work on getting the payoff down quickly.

Jerry Reynolds, President
Car Pro Radio Network
Joel .
Hi, I just recently decided to trade in my 2016 GMC 2500 Denali 4x4 Z71 package in excellent condition with 21k miles. We decided to purchase a used 2018 Chevrolet Surburban 4x4 Z71 for $52,900, the value of my truck online is same at what I paid in 2016 $56,000. The dealer wants to give me a trade in for my truck for $48,500, and I feel like they trying to take advantage of me. If my used truck costs $56,000 in 2016 and now in 2018 my truck still costs the same, what's going on with this deal. It seems like they gave me a lowball offer so they can sale the truck for a big profit. I only owe $45,000 but I'm confused with what I should do with it. Either sell it or trade it in somewhere else. A friend told me that I'll save some money on taxes if I trade it in, but I have an appointment with my accountant next Monday to see if the depreciation helped out my business or what.

Thanks
Car P.
As i talk about on the air all the time, none of the online used car sites are accurate. They don?t buy cars and have no skin in the game.

Not sure where you are located but if there is a CarMax near by, run by there and see what they?ll write a check for, That?s a good barometer.

Jerry Reynolds, President
Car Pro Radio Network
James .
I have 4,000$ left to pay on my lease and am going to wind up going over my miles, i have a 2016 Ram Rebel, the value of it with the allotted miles should equal 30,000$, will I have any trouble trading it into a dealership early to finance a 2008 Ford Ranger that?s worth 9,000$?
Car P.
It?s hard to say, there is a lot of missing info here, but I would say you probably won?t have any problems. I hope that is a REALLY nice Ranger, that?s a lot of money for 2008.

Jerry Reynolds, President
Car Pro Radio Network
Olga c.
I have a 2011 Nissan rough AWD 87,000 miles on am trying to trade in but am stills own 9,224 on it value of my car is 4,000 any chances of been aprove for a new car that cost 22,000
Car P.
Olga, if you have very good credit, yes. Just know that $22000 car will become a $27000 car when you roll in the negative equity and that will have an effect on your new payment. Use one of my dealers for the best shot at making this happen.

Jerry Reynolds, President
Car Pro Radio Network
Dakota M.
I have a 2015 Chevy Sonic LT that I bought at a dealership here in TN after my old car decided that it's time was up, I would up with a car that had 43K miles when I got it. The interest is ridiculously high at almost 26% and if I was to pay it off in cash today I would need over $12K for a car that's maybe worth $5-6K giving the mileage is now almost at 99K. No dealership in Tennessee or Georgia will allow me to trade in, nor any lender will refinance it. What options do I have as a consumer?
Car P.
I am sorry you are in this position. Your only options are to come up with a pretty substantial down payment OR continue to make payments until the balance and the value get closer together.

I wish I had better news.

Jerry Reynolds, President
Car Pro Radio Network
Maira g.
Hi i have a 2013 bmw 550i, i owe $28,000 and its worth $16444, the only reason i want to trade it in is because i just had a very expensive repair so i want to trade it in for something cheaper, i realize its $12000 negative but i would have a new car with no need for repairs?? What do you recommend? Thank you!
Jerry R.
Hi Maria! Here is a more recent article that may help you : https://www.carprousa.com/when-you-owe-more-on-your-car-than-its-worth

Best,
Amy
Gigi .
I have a 2014 Jeep Compass. I am in this jeep upside down. the trade in value is $9,395 and I owe around $25,000.00. I have tried to get in refinance but due to my credit, I can't get it refinance. I need my payments $200.00 less a month than what I am making now. I was told that it is easer to get into a new car verses a use car. Is it a good idea to try to trade or am I stuck with these payments/
Jerry R.
Gigi,

You are in an impossible situation. No lender will allow you to roll $15,000 into a new loan and even if they would, just the amount you are upside down would add $350 per month to the next payment, so your payment would go up, not down. Your best bet is to hang on. Hopefully, the balance owed will drop quicker than the value of the vehicle. I wish I had better news.


Jerry Reynolds, President
Car Pro Radio Network
Janie G.
I have a 2003 Dodge Durango that I want to trade in it's in good condition runs well interior is kind dirty but runs well. Want to know what I can do to get into an SUV like a 2007 2008
Jerry R.
Just click here and contact the closest Dodge dealer in your market: http://www.carprousa.com/certified-dealers Happy New Year!

Jerry Reynolds
Car Pro Radio Network
Gilberto .
I am trying to trade in my 2017 Honda Civic for something with more room but the car is worth 14000 and I would have 4500 in nigative Equityi don?t mind have long to pay an extra 100 a month but what would be my odds of getting approved I was thinking of trading it in for a 2017 Malibu
Jerry R.
Should not be a problem if you use one of my certified dealers. The rebates will eat up a lot of the negative. This should be pretty simple. Jerry. Check out our dealers here: https://www.carprousa.com/certified-dealers
Michael .
Hello .....question- I have a 2015 Suburban LT 4WD with 25,000 miles and still owe 44,000 on it. I wanted to trade it in for a less expensive SUV around 37,000 brand new. Is that possible to do?? Exterior and interior are in great shape. What would be a problem with trading it in?
Jerry .
It will all depend on the true value of the Suburban versus what is owed. If you have CarMax in your area, run it by there for their free cash offer and let me know what they say. If you owe more than it?s value, trading down will not lower your payment most likely.


Jerry Reynolds, President
Car Pro Radio Network
Francisco .
I bought a dodge charger 09 still paying for it could I trade it in for another car like a suburu wrx sti ???
Jerry .
Most likely that will work out for you, much will depend on the Dodges true value versus how much you owe. We have good Subaru dealers in many markets, check under CERTIFIED DEALERS on this site. Our dealers will take good care of you.

Thanks for listening!

Jerry Reynolds, President
Car Pro Radio Network
Nena .
I have a gmc terrian with body damage. And high miles owe 15.900..looking at a Nissan I know I wont get the good condition value because of body damage. So how can I get a fair trade offer?
Jerry .
Talk to the Nissan dealer that is associated with me, you'll find them under CERTIFIED DEALERS. They'll only knock off the cost of the damage from what the Terrain would normally be worth. If the damage is 25% more than your deductible, I would make an insurance claim before trading it.

Hope this helps, thanks for listening to the show!

Jerry Reynolds, President
Car Pro Radio Network
dmc .
I have a 2014 grand Cherokee SRT. I paid approx 65,000 for the car. The problem is that the engine failed and has to rebuild for it to run....I didn't have car not even a year. I was looking into a ranger Rover sport. Do you think it's a good idea to trade in the SRT. I'm really over this car!!
Jerry .
Sorry to hear about the Jeep, that?s very unusual. I would get the engine repairs completely done and it running good before trying to trade it. It?ll bring more money that way.

The Sport Rover is awesome. Certainly I think you?d really love it, everyone does.

Let me know if I can help further.


Jerry Reynolds, President
Car Pro Radio Network
Wade .
Have a 2013 ram 2 dr express 5.7L has 23,000 miles owe $36,000 do you know any dealer in my area that could help me get in a Jeep Wrangler my zip code is 22960
Jerry .
No sorry, I only have dealers in the areas the show airs.

GOOD LUCK!

Jerry Reynolds, President
Car Pro Radio Network
Alan .
I have a 2010 Sebring with a trade in value of $7000.00. I still owe $10,736.00 on the loan.
I am looking to trade the vehicle in for a 2014 Dodge Avenger for $23,275 including GAP insurance. How much should the sales price be if the dealer pays off the remaining balance of the trade-in? I forgot to mention there is a $3500.00 manufacturers rebate to be applied as well.
Jerry .
Alan,

I need more info, please email me from the website, www.carprousa.com. I need to know where you listen to the show from. Thanks.

Jerry Reynolds, President
Car Pro Radio Network
Rosa .
Hi, I have a 2012 Jeep Liberty with under 10m on it, I bought it brand new, I find it very big for me, I feel like I'm driving a truck, I live in snow country so I need a SUV, I owe $12,000 on it but the trade in is as high as $16,000, I'm interested in trading it in for a Subaru Crosstrek, which is about $26,000,
Would these be like an even deal, I don't want my payments to go too much higher, Currently I pay $270.00..
Jerry .
Rosa, good to hear from you, thanks for listening to the show! If your numbers are correct, you'll be financing $22,000 or so plus the tax, title and license. That is going to result in quite a bit higher payment. You might consider a lease to get the payments down, doesn't look like you are driving many miles.

Email me from this website, if I have a Subaru dealer near you, I'll set you up to look at specific numbers.

Jerry Reynolds, President
Car Pro Radio Network
Jeff H.
Jerry,
I realize this post is a couple years old now, but wanted to chime in and say I appreciated it. I'm upside down on my current car, in a situation where I bought more than I should have AND my life situation has changed (now needing two cars rather than just the one). This blog post was really helpful in re-assuring me that I have a good idea what to expect when I go to dealers this weekend. So thanks for this!
Jerry Reynolds
[...] Evaluating Your Ability To Trade [...]
Sheryl .
I have a few questions. I have a 2001 Buick Park Avenue, engine v6,3.8L. It has the service engine light on and has been leaking fluids. (not oil) I was told it has a leak in the intake manifold and possible valve cover gasket leak. I was also told that if I did not repair it, there was a possibility it would leak into the engine and ruin the engine, is this true?

I am planning on selling the car myself and buying something else and was wondering if it is worth to fix though I won't be able to purchase another car for about a month?

I drive about 20-25,000 miles per year (realtor) and need a comfortable larger car but want good gas mileage as well (must have dual seat adjustments), do you have a suggestion what type of car might be suitable. I have really like my Buick but they no longer make it and it now gets bad gas mileage. (use to be great) Do they make a crossover vehicle that is a hybrid (not a plug in type)? If not, can you suggest any hybrids? I am concerned about giving up so much trunk space as I need it for signs,etc. I don't want to buy brand new maybe a few years old, have about $25,000 to spend.
Jerry .
Sheryl - Good to hear from you! None of the hybrid SUVS perform properly in my opinion. I would strongly consider the Buick Lacrosse as a great alternative car. It has a nice back seat for your clients, and it gets good fuel economy.


You might also consider Hyundai Genesis, it's a great car too.

If you need help with a dealer, go to the website and click CERTIFIED DEALERS. You'll be in great hands!

Jerry Reynolds ?The Car Pro?
President, Car Pro Radio Networks
maelyn h.
I have a 2004 E320 Mercedes 57000 miles and it is free and clear. I am looking for a small or

medium size suv. I want a car with a good warranty. and good gas mileage and some cargo space.
Do I lease or buy? I'm thinking of looking for a good used Lexus. I live in Corpus Christi with no Lexus Dealer.
Ron P.
I have a 2006 Hyndai Tiburon with all the works on it and it has 141,000 because I drive it to and from work in Houston at 150 miles/day. I have had it serviced every 5,000 miles with synthetic oil, had the brakes changed at 135,000 miles and the timing belt changed (book says to do it at 60K) at 90,000 miles along with one CV Joint and a tune up. It gets between 25 and 27 mpg. No other problems or repair. The car is paid for and I love it dearly but I'm 72 years old and really don't want to buy a new car if I don't have to at this age. There are no more Tiburon's, i don't like the Veloster and really can't afford the Gennises Coupe. Recommendations please.
Bob M.
Jerry: I have a 1996 Dodge Grand Caravan LE. It has 280,000 miles. The AC has a leak and is not working now, I just recharge it each summer and it works fine. It leaks oil around the rockerarm cover, and transmission fluid. I keep an eye on the fluid levels and refill it every other month, or so when needed. The heater only works on the drivers side, but the mechanics can't figure out why.

I have checked all this on KBB.com and they say the condition is GOOD with a value of around
$ 3,300.00, without being a trade-in. That seems very high to me, I would think closer to
$ 1,100.00, or less. I want to sell this myself, but how do I determine a true value, not too high, not too low?
susan .
I have a red Ford Heavy Duty Diesel F250 two door loaded 2009 with just over 17000 that I would like to trade for a long bed used Diesel Ford or Dodge hopefully for even exchange is that an option?? in the Phoenix area
todd a.
Jerry,
I am looking for a Honda Accord. I found one at a nearby dealer with about 70,000 miles on it. It looks good inside and out. I felt a little vibration in the front when I applied the brakes. The dealer said all used cars get inspected and repaired before going out for sale. The dealer also says Hondas are good for 300,000 miles. I've heard that this year model has repeated problems with the brakes and transmission. Can you give some advice to me about this car?
todd a.
That is a 2009 Honda Accord.
Carol M.
I have inherited a 1985 Mazda GLC 3-door hatchback. 92,000 miles and leaks some oil. I need to put a value to the vehicle, but Kelly Blue book and Edmunds only go back to 1991. Nada allowed me to put in a date, but came up with a low of $1,600 and a high of around $2,800. That can't be right can it? A 27 year old car that would sell for that much? I called the local Mazda dealership but they would not assign a value. Do you have any reliable resources that I can use to determine the value?
avinash .
When you purchase your leased vehicle, isn't the dealer supposed to get the smog test done? Or the customer has to pay? What else is done by the dealer before he sells your leased car to you? Please advise.
Leo V.
I am doing some leg work for by daughter. She has 2002 Dodge with 98000 miles in good shape. She wants a new Dodge Durango or see. Her car is clear, and is able to pay cash for the new car. Does this give her any help in nesgosiation?sp Woild it be better to take the 0 int
Jerry .
Hey Leo, thanks for writing. The new Durango is awesome, I really like it and gave it a SUPER review. Her timing is good, you always want to get rid of a car before 100,000 miles. It will bring more money as a trade.

Talk to my friend John the General Sales manager at John L. Sullivan Dodge Chrysler Jeep. He'll take great care of her and give her the Car Pro Show listener pricing. Cash or finance, it won't change the price.

I wish you the best!

John L Sullivan Dodge
529 5th Street
Marysville, CA 95901-5649

John Wood: General Sales Manager
johnw@marysvilledodge.com

Cell Phone: 530.933.4076


Jerry Reynolds ?The Car Pro?
President, Car Pro Radio Networks