Quote:
Originally Posted by ASAP
Yesterday, on one of the FB groups, there was some guy that posted he traded in a Civic Type R that he had negative equity on it for a new M4... he would then owe 107k on a car worth 91k...
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Nonsense like this has been going on for a long time, but I thought it was largely over? Apparently not.
Back when I was young ('70s/'80s), if you walked into a dealership with a trade, first thing they did was determine how much equity you had in it, and also establish whether or not you'd be putting any cash down in addition to the trade. If you were upside-down in the trade (like this goofball in the example above) and didn't have a fat wad of cash to make up for it and then some, you were quickly escorted out of the dealership - absolutely no way to finance a negative equity deal back then. As it should be.