Help, I had a 2005 hundai elantra, with 33,000 klms, I went to buy a new accent 2008 ?

Question

Here is where I am confused....... I still owed $10,850

Here is what they caculated--- I end up (if I wish) a new accent sport with sun roof. for 24,000---- does anyone know how dealers caculate the end price with a trade in.......It is so confusing, Looks like the selling price was approx 13,000 ( the new accent costs about 22.000

Has anyone any insight?????

Answer 1

They are rolling the negative equity from your Elantra into your new payment.  

You need to find out what they are giving you for your Elantra. The difference between when they are giving you and what you owe is called negative equity (if you owe more than your car is worth) or equity (if your owe less than your car is worth).

New Accent for 22,000?  Why are you downgrading cars for a higher payment?

Keep the Elantra. It's a better car, anyways.  

Answer 2

(Price of new car) - (value of trade) + (balance of loan on trade) + (taxes and fees)

So if the new car is 24,000, the value of the trade in is 10,000, and you owe 12,000...

24000 - 10,000 = 14,000.  

14,000 + 12,000 = 26,000

The new price is $26,000 plus taxes license and fees