Trading Vehicles, question

jmccracken1214

jmccracken1214

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With my current situation, trading is looking like a less dumb option with every passing day. I hate to eat up some negative equity, but i hate having a new truck that doesnt work as it should, and weekly trips to the dealer for no reason, more.

I just wanted to see if I was understanding this correctly.

If I owe $28,000 on my truck and trade in is $24,000.... Thats $4,000 upside down.... Now, if I want to get a truck, like a 2011 tacoma, that has more miles than my truck, but is only $20,000.... This would put me at owing $24,000 on the truck, if I traded.... correct?


This is just a thought running through my mind, as I have to take the truck back, for the 4th time today, since they cant/wont fix it.
 
Not always. When I got my Silverado a year ago, they told me the Jeep I was trading was worth 18,000. But I owed 23. They tried to tack that 5k into the price of the truck. They were asking 32,900 for the truck. They took my Jeep and I gave them 32,000 out the door, tax and tags included. Do t be afraid to talk some shit, and get up and walk out a few times. It still works. They may have still made money, but if I was that upside down in my Jeep, they didn’t make a lot. Helps to go somewhere and already have financing. That’s where they get you also. Been dealing with the same bank and same loan officer for 20 years. All I have to do is call her and tell her I want to trade, and she says bring me a bill of sale, and I’ll give you a check once you’ve made a deal
 
jmccracken1214 said:
but i hate having a new truck that doesnt work as it should, and weekly trips to the dealer for no reason, more.
Click to expand...
Did you buy it new? If so, or even if not, but especially if you did, I would look into lemon law statutes which exist both state and federal. I had a car that I bought that had a perpetual issue. The dealer and manufacturer kept throwing their policy at me about fixing it. I filed a lawsuit and the day they had to answer the complaint they first offered me a trade without penalty and I refused saying the law says they need to buy it back for everything it cost me, which they did.
 
To answer your question, you are correct. The amount you are "upside down" gets added to your unpaid balance when you either cut the check for it or finance it.

For lenders, many do not like to see negative values on a contract. The numbers get adjusted to correct that.
Example:
actual numbers:
Purchase price = $20,000
Trade in - 24,000
Trade payoff - 28,000
Net trade in - ($4,000)
Total price - $24,000
(note: since your trade in is valued more than the purchase price, no sales tax is due)

"corrected" numbers for the contract:
Purchase price - $24,000 ($20,000 + $4,000 negative equity)
Trade in - $28,000 ($24,000 + $4,000 added above)
Payoff $28,000 (same as above)
Net trade in - $0 (no negative number now)
Total price - $24,000 (same as above)

So, to make the numbers work, $4,000 was added to the sale price and also added to the trade in price.
It's a wash but no negative numbers appear on the contract.

As far as the Lemon Law (new vehicles only):
If the dealer fails to correct the same issue after 4 tries, they have to buy the vehicle back from you at the full purchase price.
If you have several different issues, the Lemon Law does not apply unless 1 of those issues hits 4 times.
You have to ask them to buy it back, they won't just volunteer it. However, they have to do it if you ask.
 
larryh1108 said:
To answer your question, you are correct. The amount you are "upside down" gets added to your unpaid balance when you either cut the check for it or finance it.

For lenders, many do not like to see negative values on a contract. The numbers get adjusted to correct that.
Example:
actual numbers:
Purchase price = $20,000
Trade in - 24,000
Trade payoff - 28,000
Net trade in - ($4,000)
Total price - $24,000
(note: since your trade in is valued more than the purchase price, no sales tax is due)

"corrected" numbers for the contract:
Purchase price - $24,000 ($20,000 + $4,000 negative equity)
Trade in - $28,000 ($24,000 + $4,000 added above)
Payoff $28,000 (same as above)
Net trade in - $0 (no negative number now)
Total price - $24,000 (same as above)

So, to make the numbers work, $4,000 was added to the sale price and also added to the trade in price.
It's a wash but no negative numbers appear on the contract.

As far as the Lemon Law (new vehicles only):
If the dealer fails to correct the same issue after 4 tries, they have to buy the vehicle back from you at the full purchase price.
If you have several different issues, the Lemon Law does not apply unless 1 of those issues hits 4 times.
You have to ask them to buy it back, they won't just volunteer it. However, they have to do it if you ask.
Click to expand...
Thanks but I didn’t buy new. I’m the 2nd owner and got it with 28k miles on it
 
How ‘bout calling Nissan to explain you’ll be filing a lawsuit in small claims court unless they either buy back or repair your UNDER WARRANTY vehicle by 10 days from now?
 
The value of a 2011 truck with more miles is probably much less too, so although you now owe 24k on this vehicle, you're likely even more upside down than you were on the Nissan too.
 
Last edited:
If you are the 2nd owner, the Lemon Law will not apply to you...
UNLESS
This is a vehicle that was bought back under the Lemon Law (maybe the previous owner had the same issues?)
If it is a buy back then it has to be disclosed to the next buyer (by law). However, if the last guy just traded it in
because of the same issues as you are having then you may be out of luck and continue to have it fixed under
the factory warranty. Be a pest and tell them you want a loaner each time it has to go back. Demand it.

Get the factory involved if they resist your demands. If under warranty, the factory can get involved. Be a persistent pest.
The squeaky wheel does get the grease. Next time it goes in, demand to see the Service Manager or dealer GM.
Let them know your history and how dissatisfied you are with their service department. Make them make it right.
A pain? Yes, but it's better than eating $4,000, IMO.
 
larryh1108 said:
If you are the 2nd owner, the Lemon Law will not apply to you...
UNLESS
This is a vehicle that was bought back under the Lemon Law (maybe the previous owner had the same issues?)
If it is a buy back then it has to be disclosed to the next buyer (by law). However, if the last guy just traded it in
because of the same issues as you are having then you may be out of luck and continue to have it fixed under
the factory warranty. Be a pest and tell them you want a loaner each time it has to go back. Demand it.

Get the factory involved if they resist your demands. If under warranty, the factory can get involved. Be a persistent pest.
The squeaky wheel does get the grease. Next time it goes in, demand to see the Service Manager or dealer GM.
Let them know your history and how dissatisfied you are with their service department. Make them make it right.
A pain? Yes, but it's better than eating $4,000, IMO.
Click to expand...
I just called Nissan hell again, I’ve already had a case # with them on this issue. I’m taking it back today for the 4tb time and Nissan is going to be calling the dealer today and said I’ll hear back from them by the end of tomorrow.
 
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