If you have a trade will that count as a down payment?

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Michael Smith, Certified Financial Planner

@MichaelSmith1 • 02/17/16 This answer was first published on 02/17/16. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Absolutely! If you have a car worth $5k (according to the dealer, but remember.......their job is to give you as little as possible for your trade-in & charge you as much as possible for your next car) & you buy a $20k car, that $5k would be considered your down payment & you'd only need to borrow $15k. Know your values before walking in. Check out Kelly Blue Book (kbb.com) and NADA (nadaguides.com) so that you don't get lowballed on your trade in.

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