How does trading in a car work?

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  • How does trading in a car work?


Answer #1 | 19/12 2013 15:28
When you trade, a dealer will give you credit for your old car against the price of a new car -- like a down payment. You pay the difference in cash or with a loan. However, the credit for the old car is based on its wholesale vaule, while the price of the new car is based on retail value.
Positive: 51 %
Answer #2 | 19/12 2013 15:49
"Trading in" is not really a trade. The dealer will give you cash for your car to be used for purchasing the Mustang. The difference in the price of the Mustang and the cash you get will be purchase price for the Mustang. Your parents or your guardian must be with you. Call your dealer for details. And ask your Mom.
Positive: 45 %
Answer #3 | 19/12 2013 17:05
Basically you will take your Honda Accord to a dealership, and they will give you a blue book value of what you car is worth after they do a performance diagnostic on your Accord. Then they will give you a price that will most likely be less than the cars actual worth. And you will have to put the given amount as a down payment for the mustang....the rest you can either pay it off with cash or finances it which is a loan. You will need your parents or guardian to do it all for you. Secondly, why would you want to trade a Honda Accord for a mustang? The accord is much more reliable and anyone with common sense will advise you not too. Insurance for the Mustang is much more than the accord. Your long run expenses with a mustang will make you curse the day you even thought of the idea to trade your accord in. I know you want to impress your friends with a fast sport model, but trust me kid your are not ready for an unreliable vehicle with ridiculously high repair cost.
Positive: 25 %

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