Should I Trade In My Old Car At The Dealership?
Reader Question I am trading in my old Ford Mustang for a new one, but I owe some money still on it. I was told that I would get more money from the old car if I trade it in at the dealership and I could use that money to get a service contract on the new car incase something breaks down it would be covered under my extended warranty. Is this true?
Shannon,
New Orleans, LA
Dealers may have already greatly raised the price of the car that you are buying to offset the value of your trade-in. Also, any debt still owed on a trade-in will be added to your new loan. Dealers’ service departments routinely get notices about car defects from the manufacturers. These so-called “hidden warranties” often never find their way into the public knowledge.
