How to trade in a vehicle that is finaniced?

I have a 2001 Ford F-150 with 121K miles that is in great condition. Due to gas reasons, I’m considering trading it for a new 2008 Escape. The thing is that I owe around $7,700 on it but it is worth around $13,000 so how would it work on trading it in? This is the first time I have not been upside down on a car loan. Thanks for any advice.

How are you figuring the value on this truck. JMHO, but no way is an 01 F150 worth 13 grand on any day of the week; unless it’s a Lightning or Harley Davidson edition maybe.

The truck in excellent condition (near new) is worth about 7 and when a vehicle hits that magic 6 figure mark on the odometer the value takes a hit.

A guy down the street from me has an 02 I think it is with only 50k miles on it and it’s been for sale for months with a 10 grand asking price.

I’m sorry…but this is totally foolish thing to do. You will NOT be saving any money. In fact you’ll be loosing money.

Based on your mileage I calculated out that you average a little over 20k miles a year. Giving the BEST scenereo on the NEW Escort with the 2.3l 4 cylinder it will get at BEST 29 highway driving.

Your current F 150 epa ratings says it gets about 15 highway.

At 20k miles per year that would be a savings of about 644 gallons. At $3.50/gal that would be a savings of $2200 BEST CASE per year.

You owe $7700 on your current vehicle, yet you say it’s worth $13,000. difference of $5,300. A new Escape (cheap one) costs about $22,000. Now with all the possible discounts and the dealer giving you the best possible price for your vehicle it will add to your debt about $12,000.

Since you’re taking out a loan the $12,000 will cost you about $2400/yr in added loan payments.

My estimate was giving you BEST possible trade in and cost and gas mileage. So in all likelyhood it will actually cost you MORE. So your out of pocket expenses will be at LEAST $200/yr MORE then you’re paying right now.

The numbers may work in your favor if gas prices start hitting the $5 or more range.

Your truck may be worth between $3600 and $5000, depending on options. You will be upside the $7700 you owe, minus the trade in value. This amount can be financed into the new finance contract if you wish. That is generally how dealers solve the upside down problem. the other choice is to sell the car yourself, and pay the difference between $7700 and the price you get for the vehicle out of your own pocket. As indicated above, you may be better off keeping the vehicle until you are no longer upside down, or the truck is fully paid off. The economics appear to be working against you at this time.

I figured the 13k price from and I didn’t make it clear what my truck has…its a 4wd extended cab with the lariat option (loaded with everything) and the fact its in excellent condition with an automatic trans and leather seats. That may increase the value of the truck

I figured the 13k price from and I didn’t make it clear what my truck has…its a 4wd extended cab with the lariat option (loaded with everything) and the fact its in excellent condition with an automatic trans and leather seats. That may increase the value of the truck

If it’s not a diesel, it’s not worth $13K…

KBB and Edmunds are general guidelines and often do not reflect reality.

Check eBay. You will find a number of comparable '01s with less mileage, cheaper prices, and no one is buying them.

If you think the truck will bring 13k+ then your best bet is to sell it privately, then use the extra money as a down. This avoids the dealer numbers juggling game they play; one that a relative of mine who won’t listen is going through right now after being offered 3 grand trade on a 500 dollar car.

ok, logged out again, 4450

Go to the dealer and they can do all the figuring right there. They, and only they will tell you if the trade is possible, and how little value that they will assign to your OLD truck. They might give you what you owe on it, but you are probably upside down again. You are in a bad financial situation as far as trade ins are concerned, unless you have some cash that you are willing to put down. This quote came to me from a man at a credit union when I kept wanting a trade. “You can’t afford to keep taking beatings like this.” Your proposal is much more reasonable than mine was, but I think you should pay off the truck before doing another deal. You have some good advice from the other posters too.

Your excessive mileage will kill the value of your truck. Its likely an $8000 trade in. (check

That puts you back another $5k into the hole. I don’t think this is a financially wise move, mikeInNH did a good analysis.

They would love to finance you. Its pure profit and your ripe for the plucking with all the #'s they can manipulate into a palatable payment.

You might be confusing dealer value with trade-in value. You want to see the trade-in value. A car in excellent condition requires no work at all. The dealer can just put it on the lot and sell it as-is. Is your truck in that good condition? Be honest with yourself. It doesn’t matter what you tell us. And the mileage deduction is $1600. There’s no way you will get $13,000 unless you pay MSRP for the new truck. You’d have to give up the $3500 rebate and $1000 average under MSRP to get that price. And maybe $2500 more.

jtsanders, who hates agreeing to terms of service when Car Talk drops its users.

Isnt it best to wait on the trade-in until you finish making the deal on the new car? If you admit the trade-in they will swipe all of the offers they’ve made or am I totally incorrect?


Take the truck to a dealer and ask how much they would pay for it. It will be the same price whether you trade or sell the truck outright to them. I had great success selling a Windstar to CarMax. If there is a CarMax near you, see what they offer.

jtsanders wha was dropped again. I just love agreeing to the terms of service over and over agian, don’t you, Cyberbabe?

Given the low desirability of used American gas hogs these days, I’d say your best case scenario is that a dealership will give you the payoff amount in trade, and not much more, given the mileage on your truck. Most brand name dealerships will have to sell this one at auction, as they try to keep their used cars in the sub-70K mile range.

But if you’re just plain sick of it, and want to feel better about your petroleum consumption, they’ll be glad to take it off your hands when you buy a smaller, albeit likely more expensive, car.