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Posted in Auto Loans
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mytazbug

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Trade in my vehicle for a new model
I currently have my auto loan with Ally Bank for 72 months. I have about 20,000 left on the current loan. I am thinking about trading my vehicle in for a newer model. Is it a good idea to do it now or should I wait a while longer.

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it depends on what your vehicle is worth right now and what it will be worth down the road. How much will they give you for your car on trade? Will it be enough to cover what you currently owe on this car. Do some reading on "underwater car loans". If you can get what you owe on the car now either by trading or selling, then now may be better than later to upgrade as your car will depreciate as time goes on, but what you owe will go down too. The thing is, dealerships don't like to give much for trades, they may want to give you five or seven grand less than what you owe for the car, which would add that five or seven grand to the price of the new car in addition to the depreciation when you pull the new car off the lot. You don't want to end up with a new car that you owe way more on than what it is worth.

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I would like to trade in my 2003 Dodge Grand Caravan SE for a newer one, not brand new. Maybe 2007 2010, How much would I have to put down or if at all.  I am on SSDisability so I need to be careful don"t want to go over my head. 

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