Is there a Toyota dealer that would accept trade-ins?

Question

I have a Toyota Matrix 2006 XR and I want to upgrade to the new 2009 base model. I'm still paying for the old matrix, would they let me me do the upgrade and then refinance it to a new contract? Please let me know. Thanks

Answer 1

Shouldn't be too much of a problem.  Is the car financed through the dealer/Toyota or is it through another lending institution?  If it's done through Toyota, it would certainly be much easier.

Answer 2

Yes. What they will do is offer you X-dollars for your current Matrix (lets say they offer you $12K for your Matrix). But if you owe more than that on the car (say you still owe $15K on your car loan) what they will do is tack the difference ($3K) onto your new car loan.

So, it'll look like this:

$12,000 (trade in value of 2006 Matrix)

$15,000 (Balance remaining on loan)

$3000 (difference)

$19000 (sale price of 2009 Matrix)

$3000 (pay off of old loan)

$22,000 (Amount financed)

This is called being upside down on your loan (owing more that the value of the car). Be very careful. Do not go too far.