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New the the trading game:

Thinking about trading my 07 E90 for a '10 E92. Currently own about 17k from when I bought it as CPO for 29.5k. Say the car's KBB is 27k and they appraise for 23k (hypothetically), Would I get my $17k or would it be a percentage of that? 13-14k?
 

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New the the trading game:

Thinking about trading my 07 E90 for a '10 E92. Currently own about 17k from when I bought it as CPO for 29.5k. Say the car's KBB is 27k and they appraise for 23k (hypothetically), Would I get my $17k or would it be a percentage of that? 13-14k?
Hmmm do you mean you owe $17K?

Or do you mean you own $17K (equity) on it then it means you owe $12.5 on it based on the $29.5K cost. If this is the case then let's say they give you $23K then $12.5K goes to the bank first and you get the rest about $10.5K.
 

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I guess to be clear (and if I understand), if I owned 50% and traded then they would give me 50% of the value they stick the car at during the trade correct?
 

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Yes unless you owe more on it then it's worth.

For example, they appraise and give you $10K, but you owe the bank $15K on it.
 

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Based on his name, he may be underwater :).
 

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I guess to be clear (and if I understand), if I owned 50% and traded then they would give me 50% of the value they stick the car at during the trade correct?
The percentage you owe is not relevant, only the dollar amount. The car is sold and then you have to pay off whatever is left on the loan.

It doesn't matter if they offer you $25K or $5K, if you owe $10K before the trade-in, you owe the bank $10K. Subtract that from what the dealer offers you and you get to keep the remainder and apply it to your new purchase (or you owe the bank the remainder if it is negative).
 

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If you owe more than they will give you for it you will either have to cough up the cash or roll the "negative equity" into the new loan for the new car. If you owe less than they'll give you for it, you can use that as down payment money or if you want the dealer would cut you a check for the difference.
 

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The bottom line...you owe $17K. Doesn't matter how much you get as a trade in, you owe $17K. If they appraise it for $20K, the bank / finance company gets $17K, you get $3K. If they want to give you $25K, the bank / finance company get s $17K, you get $8K. As another poster said, percentages have nothing to do with it.....you owe $17K!
 
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