Hi,

First of all Thanks so Much for this website - it really helped us and we we did a good deal today. One small thing that got by us involves the trade in.

The dealer never gave our trade in a figure, instead we worked toward a "bottom line" number.

When the paperwork came out the trade in allowance was written up much higher than the vehicle really was worth and the vehicle price was higher than the advertised price. The bottom line was what we had negotiated so on the surface that's fine, the price I'm paying is the one I want to pay, but what we realized was that if lighting strikes and the trade in is in an accident in the day & a half before we pick up the new "previously owned" car then we would be on the hook for the difference because we won't be delivering on our part of the contract.

Maybe you covered this angle on the site, frankly there was so much great info I may have missed it... otherwise it might be worth adding.

Thanks again,
Lesley in Toronto

Hi Lesley in GTA, thanks for your kind comments, I don't fully understand what you're trying to say about trade being in an accident and you on the hook should you not be trading vehicle in same condition as time of appraisal, you're not on the hook for anything, the dealer however can refuse the trade and nullify the deal.

I appreciate your input as you have brought to light another side about trading a vehicle that I will add to website " being upside down "

Correct me if I am wrong, the vehicle you traded had a negative value factor that you did not want to pay, and the dealer added that amount to the selling price in order to get approval from a lender ?

This type of transaction is very common,a negative is the tax factor, in your case you paid 13% more in taxes on the added amount. also one must try to terminate the loan negative prior to next trade in, or will be upside down again big time.

however you did well as you entered a transaction being prepared with a bottom line number to work with, and got it, where as many consumers enter a dealership not being prepared and wake up the next morning and wondering what the hell happened looking at bill of sale, lol

I have added some facts related to the above question, you will find if you navigate to " whats my trade worth "