Confusing trade-in valuation listed as “negative trade-in” despite positive equity

[Mad_Yeti_]

You should be considering black book/auction values. Dealers don't pay blue book.

That noted, post a screen shot of what you're looking at and maybe we can be more helpful. I traded in a Model S on my Cybertruck so am familiar with the trade-in process.

it’s the amount due section. I indicated in my financing application that I would put $20,000 down. I’m not sure where the $66K number is coming from.

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[FitNess]

did you have Teslas trade-in/buyout price before the day of delivery? Mine still shows as pending.

Mine showed pending also for days.. The morning (on the way to pickup) it updated and showed that I no longer owed them but instead that they owed me. I talked briefly to the advisor on site and they said I’d get a check for the rest and it worked out.

 

[Mad_Yeti_]

Mine showed pending also for days.. The morning (on the way to pickup) it updated and showed that I no longer owed them but instead that they owed me. I talked briefly to the advisor on site and they said I’d get a check for the rest and it worked out.

Gotcha. Thank you.
Did you confirm financing prior to the numbers changing the day of delivery?

i’m hesitant because my trade-in is still pending and the financing paperwork says I owe $66,000 on delivery day lol

 

[FitNess]

Gotcha. Thank you.
Did you confirm financing prior to the numbers changing the day of delivery?

That one I can’t help with, I didn’t finance. It was just a trade.

 

[TrittMD]

You’re getting 40k credit for your trade and hence you owe an additional amount to your existing financed balance. 46K to pay off loan and being upside down and then your 20k down payment.

 

[Mad_Yeti_]

You’re getting 40k credit for your trade and hence you owe an additional amount to your existing financed balance. 46K to pay off loan and being upside down and then your 20k down payment.

I’m not upside down though.

 

[TrittMD]

I’m not upside down though.

You don’t determine if you’re upside down…the dealer does that makes the trade offer.

 

[TrittMD]

You don’t determine if you’re upside down…the dealer does that makes the trade offer.

Or your trade offer isn’t included.

 

[carsly]

Or your trade offer isn’t included.

I think that's it. The negative trade in is the loan balance outstanding at the time of their data pull.

No credit is shown as of yet for the trade-in, probably waiting for appraisal.

 

[Mad_Yeti_]

I think that's it. The negative trade in is the loan balance outstanding at the time of their data pull.

No credit is shown as of yet for the trade-in, probably waiting for appraisal.

Thanks everyone.

Ok that makes more sense but what a confusing way to list it on financing paperwork.

Should I wait to confirm / approve financing until I receive the trade offer?

 

[carsly]

Thanks everyone.

Ok that makes more sense but what a confusing way to list it on financing paperwork.

Should I wait to confirm / approve financing until I receive the trade offer?

That's up to you. You have to come up with the $66,388 on pickup - whether that's trade-in, cash or a mix is your choice. I'd probably sell the car separately and use that to pay off the old loan and keep it out of the transaction entirely. But I like things simple - keep each deal (purchase, sale) as it's own.

Yes, I did a trade-in with Tesla. But my vehicle was paid in full and I was covering the difference in cash so no loan. I did request one, but Tesla never got back to me on terms despite my 800+ FICO. so I cancelled the credit application Their loss.

 

[Late_Refustration]

Bottom line. Your going to have a hefty payment and experience rapid depreciation once the non-FS is available for purchase.

How is that relevant to his trade, right now?

 

[REM]

Tesla offers below the average market value because they aren't a dealership.

Every single one of those trade-ins go to auction to be sold at small used car dealerships.

 

[Mad_Yeti_]

That's up to you. You have to come up with the $66,388 on pickup - whether that's trade-in, cash or a mix is your choice. I'd probably sell the car separately and use that to pay off the old loan and keep it out of the transaction entirely. But I like things simple - keep each deal (purchase, sale) as it's own.

Yes, I did a trade-in with Tesla. But my vehicle was paid in full and I was covering the difference in cash so no loan. I did request one, but Tesla never got back to me on terms despite my 800+ FICO. so I cancelled the credit application Their loss.

So are you thinking Tesla is saying that they want $66k down from me instead of the $20k I listed on my finance application? Example: I said I’d put down $20k and they say “no, we want $66k.”

Or are you saying that if I leave my trade in attached to the deal somehow $66k needs to be covered between cash down, the vehicle appraising, etc?

Would it make sense that if i just removed the trade in from the application that they’d just say only the $20k was due on delivery day?

Just making sure I understand because this whole process is different than any car buying experience I’ve had in the past, and I usually buy something new every year between myself, my wife, and my business.

Thanks to everyone for the help.

I’ve emailed, called, and messaged Tesla both through the app and over text. No answer at my local showroom and no response over messages.

The only thing I received today was a clickable link over the Tesla app messenger that said “prepare for your cybertruck delivery by providing payment method details” and this followed my long message to them asking for clarification. Lol. The clickable link took me to the page to approve financing (and the $66k down).

 

[AnxiousInMO]

CT delivery tomorrow is my second Tesla purchase, and so far they are 2 for 2 at getting the Final Payment math wrong. From the perspective of both a customer and Tesla bull shareholder, this is a rework inefficiency that should be fixed.

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