Free preview · from the dealership side of the desk
Most trades we see still have a loan on them, and the mechanics are the same every time: the dealer gets a payoff from your lender, pays the loan off after the new deal funds, and the difference between the allowance and what you owe either goes toward the new car or onto the new loan. Simple on paper. In practice, those three numbers (allowance, payoff, equity) are where a store can move money around without you noticing.
Here is how it works from the desk, in order, with the figures labeled so you can follow your own deal. Every dollar amount is an example.
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In the full guide
- Step 1: the payoff
- Step 2: the equity
- Step 3: what the dealer does with your loan
- Where the numbers get moved
- If you are badly upside down
- The checklist
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