Car Trade and Upgrade Programs

[Anonymous]

We have a car that is three years old and in good shape. We still owe a little money on it. The dealership has been calling us incessantly about their "trade and upgrade" program. I feel like it can't possibly be a good deal for us -- we definitely do not "need" a new car -- but I'm a bit curious. Has anyone ever done this? Does it ever make financial sense? Thanks!

[Anonymous]

The short version is the balance of your current loan into the loan for the new car and extend out the term of the loan which makes your monthly payments stay the same.

The only way it might possibly be a good idea is if you really abused your car during the three years you've owned it and expect it will require substantial repairs when the warranty expires. For 99% of people it will be a bad deal though.

[Anonymous]

It's bullshit I get these every few months. "They are looking for YOUR car etc..."

[Anonymous]

Anonymous wrote:We have a car that is three years old and in good shape. We still owe a little money on it. The dealership has been calling us incessantly about their "trade and upgrade" program. I feel like it can't possibly be a good deal for us -- we definitely do not "need" a new car -- but I'm a bit curious. Has anyone ever done this? Does it ever make financial sense? Thanks!

We just did this. They gave us $24k for our 3.5 year old minivan (paid $33k new) and we got a new $33k minivan. So $9k for 40 months of ownership. Cheaper than the best possible lease payment on the same car.