Quote:
Originally Posted by itrocks4u
Dealer is not necessarily playing you but he's working out a deal that works for both of you. He needs inventory to sell so wants your car back. In return, he's letting you benefit from positive equity. It's sort of like you trading In a car, paying off loan and making a profit. With $50K market price, he intense to make $3K on the car.
Look at the math this way: $30K in residual plus $15K in remaining payments, your total liability today is $45K. With $2K equity, dealer is offering you $47K. Behind the scenes, he will take $45K and offset it against the liability by paying off the residual and $15K in payments. Upfront, he's giving you $2K to roll into the new car. You can choose to cash out and not get a new car and keep that $2K.
In order to figure out if $47K offered to you is fair, do a check with Carvana and Carmax to see what they would have offered you.
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OK you've finally done it for me, they are th enumbers I was struggling with. So OK, I see where they are coming from, i had sorta written off the owed monies on the existing term in place of pushing out for a further 2 years. But I see it now.
Definitely cheapest option for me is to pay $30K for a vehicle we can then drive another 5 years easily.