Does a trade in count as a down payment?

Question

Does a trade in count as a down payment?

Answer 1

Your trade in will be determined at the dealership based off of previous auction sales by a guide the dealers uses called the black book or online with the manheim market report. Remember that the amount the dealer gives you as a trade in will only be applied if there is an equity situation. Your trade in can also have a negative balance that only rolls over into your next used car purchase. Just like the answer above make sure you know how much you are buying the next car purchase price before you show that you have a trade in. This will enable you to get the best price and then if there is money to come off because of your trade-in then the deal gets better for you.

Good luck on your next used car purchase. Please visit http://www.ValleyVehicles.com to find your next used car. There are thousands of used cars to search from, and lots of dealers have great financing options to help you get your next used car.

Answer 2

Yes it does.  If y the car is paid off or has equity in it that equity will be used as a down payment and reduce your balance due.

If you still owe on the car and there is no equity or negative equity then the car is going to increase your balance due.

Answer 3

yes. if you owe nothing on your trade in, it will count as your down payment. If you owe $1000 and they give you $1500 towards it, the $500 will count as the down payment. You should ask the dealer for more info though

Answer 4

just remember, do not tell him about the trade in until you guys settle on a price.

Answer 5

Yes, unless you have negative equity (you owe more than what you are selling it to the dealer).

In some states (like Illinois), you do not have to pay taxes the difference between the car you are purchasing and the value of your trade.

For example, if you buy a car for $15,000 and your trade is worth $2,000, then you only have to pay sales tax on the difference ($13,000).

Answer 6

It should as it is still money coming off the final selling price.