What if my outstanding car finance is higher than the book value?

In many cases where long car finance periods or large balloon payments are selected initially, it makes the car more affordable but can become a problem when trying to upgrade your car. Trading in your car should at the very least should cover what is outstanding to the bank and if the difference is small most car dealers will offer you best online casino fast payout the finance difference in the form of a small discount to keep you from leaving the showroom.

Car book value and financing a new car

Book values of cars or blue book values as they known are used by the industry and not generally available to the public which gives retail price and a trade price of all vehicles. These values are used by car dealers to determine the trade in value of your car after it has been assessed by a mechanic.

When trading in and financing a new car you should remember that the car dealer wants to make a bit of money on both the sale of the new car, the sale of your traded in car and then somewhere along the line there are likely to be incentives for the dealer/sales person to place the car finance with a particular bank, the insurance with a particular insurer and perhaps an incentive to sell you an extended warranty policy.

With this is mind when financing a new car, don’t just accept the trade value, you can negotiate to somewhere in between trade and retail value of the car. If you are really unhappy with the trade in value being offered your other option is to sell it privately.

Now that you are armed with the knowledge of the trade and retail value of your car and have been made a trade in offer, you can make the decision to advertise it privately on one of the many platforms like best high roller online casino, OLX or gum tree. Selling your car this way will realize as much as 20% more and help you with your new car financing but like anything there are risks associated with selling a car privately.

If you do sell privately and can make a large deposit on your new car then the financing of your car will be made easier and you will be in a better position to negotiate a better price.

Frank Nadia
the authorFrank Nadia