Question? I'm wanting to trade down on my vehicle?

Question:
I have a 2002 BMW 525i at $21,500 with payments monthly of $467.00
I'm wanting to trade this car on another car that's not so much money, price wise and monthly payments.
Can I trade down like that without putting money down or being upside down? What can I do?

Answers:

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A dealer is not going to want to let you trade down, so you will get soaked in a transaction with one. (they'll give you no break onthe price of the car you are buying and will give you a low trade in value).

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You're better off selling your current car on your own, paying off the loan, and financing another, less expensive car.

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The only way is to find a seller for the car. Otherwise they will roll the negative equity into your new car and you definitely be upside down. Based on the assumption of avg miles and good condition the car isn't worth more the 16,000 to a typical dealer on a really good day. Depending on where you live Carmax is a car dealer that will buy your car without you buying one from them. Good luck.

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Trade-in value on that is around $14,700. You're WAY upside down. There's pretty much no chance that you'll be able to trade down for a lower payment with $7k in negative equity.

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On a good day you might get about $18.5k on a private sale so you'd need to come up with $3k on your own to pay off the note and get out from under the car. That's your only realistic option at this point, assuming that you have the $3,000. If not, you're going to have to make around 2 - 3 more years of payments to get right side up.
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