Getting a new car: Does this make sense to you???

misses625

DH and I picked out a used Honda Pilot last night, and the dealership is working on the numbers and everything today since they closed soon after we picked out the car last night. 

The sticker price is $22,995.  We have a trade-in that we owe $11,000 on, but they are giving us $9,000 for it PLUS we are putting $2,000 down on the Honda. 

They told my DH an hour ago that NO banks will help us out because we owe so much on my car...even though they are giving us a good amount for a trade-in and we are putting a couple grand down. 

Our credit is excellent, and they said that isn't the problem at all.

I can't even imagine that a bank would not help us out.  This is so frustrating.

femmegem

We have awesome credit and barely were able to refinance our house recently. So I believe it. Banks are being VERY stingy right now. It's extremely frustrating.

DaiLyght

You might want to try calling your own bank and asking them to work the numbers for you to see if they would give you a loan and what the interest rate would be. You might also want to ask if there would be any difference if you were to sell your current car yourself, and then put that much in cash as a down payment. Good luck!

rach&jay

misses625:

DH and I picked out a used Honda Pilot last night, and the dealership is working on the numbers and everything today since they closed soon after we picked out the car last night. 

The sticker price is $22,995.  We have a trade-in that we owe $11,000 on, but they are giving us $9,000 for it PLUS we are putting $2,000 down on the Honda. 

They told my DH an hour ago that NO banks will help us out because we owe so much on my car...even though they are giving us a good amount for a trade-in and we are putting a couple grand down. 

Our credit is excellent, and they said that isn't the problem at all.

I can't even imagine that a bank would not help us out.  This is so frustrating.

So would you still owe $2k on your old car then?  Would it make more sense to conduct the transactions separately and then take the $2k you were putting down on the Honda and pay off your old car? 

soontobemomma

Do you have a carmax near you? ?They will give you an estimate on what they'll buy your car for and it is good for 7 days. ?They may give you more than the dealer, they always do for me. ?Then you can handle them as two transactions.

?Also, make sure that your dealer is marking down the car you like at least 3 grand. ?Definitely don't pay sticker. ?I got one dealer to come down almost 6 grand on a used car without really trying.

?

Good luck.?

r9stedt

We just went through a similar transaction, we were very upside down on My car. Thankfully, MH truck that we traded in too helped even it out. It was a total pita.

joseysbride

Well, technically you are coming out behind on your current car by trading it for that price, even if you have the $2000.  Why not put the $2000 toward the payment on your current car first?

What is your current car really worth?  Many times the trade-in that they give you is less than what you could probably sell it for otherwise.  Could you try to sell it on your own?

michaeltrish

Dh is a GM at a car dealership and he said the banks are being extremely tight right now.  However, I think you should try to sell your trade on your own because you will always get more than what they are willing to give you, it just may take a little more time.   I have a Honda Pilot, btw, and love it.

Kelly Madonna

ditto everyone else, try to sell the car first. Go back to buy the Pilot as a separate transaction.

rach&jay

I also think that if you trade in the car, and still owe $2k on the car, the back may be worried about you defaulting on that loan.  They would no longer have a car to repossess.

ccm1203

So you are are putting $2000 down on the Honda and have a $9000 trade-in?  So really are asking to roll $2000 into the new car loan?  It makes sense that they don't want to roll that in. The banks are being tight right now.