Cash Back - on a car trade-in, cash back onlinetrade

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"Cash Back" on a car trade-in?

"Cash Back" on a car trade-in?

Post by The Dark Knight » Sun Apr 15, 2012 2:51 pm

I will be looking to purchase a new car within the next month or so.

I have a trade-in worth about 15k (this is on the very low end of most of those online trade-in estimators, so I'm assuming I'll get around this or maybe 1-2k less). The finance deals are so good right now I'd like to finance and finance as much as possible.

If I trade-in my car, does anyone have experience or know of dealers giving you "cash back"? So say I purchase a 30k car. I trade-in my 15k car, so they apply 5k to the new car, I finance 25k, and I get a 10k check from the dealer. Would this be doable?

I know easiest/ best way would be to sell my car first, but want to see if the above would be doable.

Re: "Cash Back" on a car trade-in?

Post by Rusty123 » Sun Apr 15, 2012 5:41 pm

Re: "Cash Back" on a car trade-in?

Post by Mike143 » Sun Apr 15, 2012 5:54 pm

Re: "Cash Back" on a car trade-in?

Post by Jasonlitka » Mon Apr 16, 2012 12:48 pm

Re: "Cash Back" on a car trade-in?

Post by Edawg » Mon Apr 16, 2012 9:09 pm

Yes, the dealer will do it. I've been offered such a deal before as well as "cashed out" when I bought a used Honda to trade in a relatively new gas guzzler.

No, you shouldn't (assuming you're thinking of investing the difference given low rates on new vehicles). Aside from the usual advice that paying interest on a depreciating asset is a bad move, the risk of investing borrowed money is even more perilous. Now, if you can sell the $15,000 car and buy a $10,000 car that also costs less to operate so you can pocket the monthly savings PLUS invest the $5K, then you are being Bogle-ish.