Whether you are buying a new car or a used car, you can look into options for a vehicle trade in for great deals. A trade-in is a beneficial way to bring down the overall cost of your new vehicle, and consequently, your auto loan amount. However, before you begin negotiating, there are a few things you should be sure to do. It is important to enter into negotiating with your car dealer as prepared as you can be. Research Your Vehicle’s Current Value The trade-in value of your car is dependent on its blue book value on the open…
How to Negotiate for Auto Financing with a Vehicle Trade-In
Posted by admin on June 26, 2010 in auto loans with bad credit · 2 Comments
Can you negotiate an auto lease payoff when buying a new car?
I am looking to buy a new car, but my current lease is up this August. I WILL be under mileage and there is no excess wear and tear. Instead of trading in the leased vehicle when I buy the new car (and running the risk of adding money to my new car loan b/c the residual value is higher than the vehicle’s current ACV), can I negotiate with the new dealership to have them pay off my remaining lease balance owed until August? If the dealership does agree to this I assume I would pay the remaining balance owed to the financing company and turn the vehicle back into the dealership I originally leased it from?
It almost never makes sense to trade a leased car. If at lease-end your residual is higher than your ACV, then why would you trade with the negative equity? Simply return the vehicle to the lease company and let them eat the negative equity.
If you trade before your lease is up, you will have a large negative equity (or sum of remaining payments). Why trade and add all that into the price of a new car? And it doesn’t make sense to pay off the car early and then not have use of the car??? It’s like throwing money away.
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