Negotiate the transactions separately. Begin with cementing the price of your new automobile. Then, work on the value of your trade-in. That way, you’ll know whether you’re truly getting a good deal (on both transactions) or if you’re being taken around the block.
One of the strategies that auto dealerships are using in order to entice people into buying new vehicles is offering a 7-year loan. At first, it sounds great; a longer loan means lower monthly payments. The truth is, longer financing terms translate into a higher cost for you and more profit for the dealer. In other words, they’re not offering it to be nice.
If possible, say no to the extra long loan. Instead, opt for shorter terms that allow you to pay off the loan more quickly. You’ll pay less interest and when the time comes to sell your car, you won’t find yourself owing more than it’s worth.