Tips on Buying Cars: Paying too much, negative equity, elena

Question
Hello,


I have question. I was going over my contract and it says:

Gross trade in                        6900
less pay off made by seller  10000

equal net trade in (Minus)  -3100


Why is it the net trade in minus and positive? It seems trading in my car added to the price.

Thank you,

Elena

Answer
Elena,

It did not add to the price.  They deducted 6900 for the price of your vehicle.  If you had a clear title, the price of the vehicle would have been 6900 less because of your trade in.  However you owed 10,000 so they have to add that entire amount back in.  Net you only rolled 3100 in because that was your negative equity.

Hope this helps.

Thanks - Jb