Join Date: Mar 2010
Location: Palos Hills Illinois
You may have a trade worth 10k, but you owe 13k. You have no equity and the dealer has to pay your car off with 13k.
Think of it this way.
$30,000 new car
13,000 payoff on your trade to get a clear title
-10,000 the value of your trade
33,000 amount you will owe to get out of your old car, into new Impala.
You deduct your 3k cash down payment from there. The 3k cash is the only equity you will have in this new car.
You can't just deduct the 3k you are upside down because to get a clear title for your trade, the dealer has to pay the 10k also. You owe 13k on a 10k car.
It's simple math, the dealer is not hurting you.