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Tips on Buying Cars/trading in our finaced car


Hi! My husband and I recently financed a car and have come to realize our monthly payments are to much! It is our first car and we weren't very knowledgeable about the auto industry! We are just starting to establish our credit, so we have a 7.5% interest rate and we are paying $386/monthly. We would like to trade in our vehicle for something more budget friendly and reliable. We are not really sure on what steps to take, and we don't want to be just told anything by a sales rep. What steps should we take in making the decision to trade in our financed vehicle. Please help us!

car guy
car guy  

car dlr
car dlr  

You are in luck because I love to help people BEFORE they do something really dumb or expensive and if you let this car get repossessed for any reason then that is what you will be doing. Seriously.

Here is what I need to know from you in order to give you the benefit of my advice (and have it be correct)

1. What kind of car are we talking about ...I need to know tyhe yr, make, model, trim level "XLT" or "Si" etc, how many miles are on this car, is there any special aftermarket equipment on this car like premium wheels? a power sunroof? DVD? Navigation? A killer stereo? does it have power windows, locks, mirrors, seats etc. and is the upholstery leather or cloth if it's an SUV is it a 4x4 etc. I am going to book this car out and see what it's worth. If you have the VIN # and can send it to me then please send it to my personal email at't post it here.

2. I need to know what the approximate payoff for the car is ...if you have the original contract you signed then I need the amount that shows on line 5 of the contract along with the number of payments you have made and the term of the contract.

3. I really need to know if you bought an extended service contract or GAP insurance or credit life and disability insurance coverages and the amount for each one.

Once I get that info from you then I will come up with a plan to get you guys out of that rig and into something you can afford. Usually with first time buyers the banks don't put themselves in a position to get hurt too badly so I am hopeful that what you owe is fairly close to the cars value.

Lastly, just know that I am with you on this until it's done and if you do something I tell you not to do then you will be doing something that is not in your best interest. Also tell me when you made your last payment and when your next payment is due and if you are past due at all ....and just know that we have all been there and its ok to tell me the cold hard truth.

I will look for your response later this evening so we can have a plan ofaction in place before tomorrow

The Car Guy

Tips on Buying Cars

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Roger Alvey


I can answer any question about the car buying process. I am a recognized industry expert on all issues regarding auto finance, including sub prime and buy here pay here financing, I can answer questions about car lock out systems, GPS monitoring by your bank, and about auto recovery methods and defenses. I am a 20 yr car industry expert and can tell you what to look for in a used car, how to negotiate the deal, help with how to market your own car, and how to negotiate with the internet department of any car store. I can tell you every single way the dealer is set up to beat you and how to avoid those traps, I can discuss all aftermarket and extended service contract products you will be offered in the finance process, I have lectured extensively on "The Best Way to Buy a Car" to civic groups and university students. I am a credit expert and can tell you what the dealer and banks are looking for and the rate you can expect to pay. HERE IS THE LINK TO MY OTHER ALLEXPERTS CATEGORIES WHERE I HAVE ANSWERED LOTS OF QUESTIONS HERE IS A LINK TO MY BLOG


20 years industry experience in top management of dealerships and dealer groups. Recognized industry expert since 2004 in the Top 10 industry experts for The Gerson Lehrman Groups Auto Industry Council. I also do consulting work for Atheneum Partners, Expert 360, Expert Connect and Coleman Research. I have been a franchise owner and understand all facets of the auto industry from the time the car leaves the factory until it leaves the lot with it's new owner. I have written training materials for both the prime and the subprime sales and finance process.

NADA, OADA, NFIB, State Certified Used Car Appraiser

Special Finance Insider, Dealer, and Automotive News, Gerson Lehrman Group Auto Industry Council News (frequently)

Willamette University - Salem Oregon BA Economics Willamette University Graduate School of Business - Econometrics Statistics

Awards and Honors
GM's Award of (their most prestigious award) Given to Dealers who surpass their annual benchmark planning volume while also maintaining Top Box (top 5%) CSI

Past/Present Clients
Citadel Investment Group , Summit Partners US ,Broad Peak Investment Management, Nautic Partners, LLC, Hellman & Friedman Investors, L.P. and over 40 additional money managers, hedge funds and research groups

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