need to understand how finance calculation work

Jetta03 wrote:

smkettner wrote:
That puts you $6,388 upside down.

$6388 upside down and looking to roll this into financing another 70k+ on another new unit? Your question is moot, you've already been taken advantage of.

With no other facts, why are you certain they are being ripped off? If their rig is really worth $6388 less than they owe, that is a fact that will not be changed by trading it in or keeping it. We have no idea if $70,000 for the rig they are looking at is a good deal or a bad deal. If it is a great deal (buying at say true wholesale value), then they are going to be $6388.00 upside down on the new rig after they finance in the negative equity. Most likely the deal is an average deal (paying somewhere around a fair retail price, which is what most people pay), so they might be another $4,000 or $5,000 upside down (in relation to wholes value) which isn't great, but isn't the end of the world. Personally, I would rather be $11,000 in the hole on something I want, that I like and that fits my needs rather then being $6388 upside down on something that isn't working for me.