need to understand how finance calculation work
We want to buy a fifth wheel, and we need to trade a travel trailer that has no equity. Is there a step i can follow so i dont get taken advantage of or tricked into a bad deal?
Forum Discussion
That puts you $6,388 upside down. If the value of the coach and the new lender will allow you to roll that 6k into the purchase you will then owe $73,900 + 6,388 + title + sales tax (6%? $4,434) - down payment (10%? $7,390) on the new coach. Debt could be $77,832 on a $73,900 coach. That is roughly how it works unless they add a warranty, undercoating, alarm system, glass etching, other BS at additional cost.
You can always put additional money down. If financing I tend to go with the max loan at best terms and then pay extra each month as long as times are good. And today times are good. If you have no way to pay extra then you should look deep into whether you should be making this trade.
Biggest issue is to be comfortable with the trade in value and the new coach price. And of course the payment should not be an overwhelming burden.
Good luck. Take a buddy with you if you think you may need to step away for a minute to discuss the deal before you sign. No cooling off period.
You can always put additional money down. If financing I tend to go with the max loan at best terms and then pay extra each month as long as times are good. And today times are good. If you have no way to pay extra then you should look deep into whether you should be making this trade.
Biggest issue is to be comfortable with the trade in value and the new coach price. And of course the payment should not be an overwhelming burden.
Good luck. Take a buddy with you if you think you may need to step away for a minute to discuss the deal before you sign. No cooling off period.
