Dye Autos Denver Area Truck and Automotive Blog
Yes, when buying a car or truck, your trade in vehicle can serve as your down payment. However, there are factors to consider in that decision.
1. Dealers accept trade ins and cash down payments.
The amount of total down payment you’ll need is governed by two things:
- The amount that the bank requires in order to provide you with a loan. Your credit score is the driving factor.
- The amount of monthly payment that fits your budget.
2. Is your trade in loan paid off?
- If your trade in loan is paid off, the dealer will appraise your trade in and give you the price they’re willing to pay for your vehicle (actual cash value or ACV). You can use that amount as a down payment, or, in some circumstances, you can take part of it in cash back to pay for other important things in your life.
- If your trade in loan is not paid off, the dealer will get in touch with your bank for the pay off amount and compare it with the price they are giving your for your trade in (ACV).
- A positive difference (you owe less on your loan than your trade in’s ACV) means you can use the amount for your down payment.
- A negative difference (sometimes called “negative equity” – you owe more on your loan than your trade in’s ACV) gets a bit more complicated and #3 below explains more.
3. Does your trade in have negative equity?
Equity is the difference between your trade in’s actual cash value (ACV) and the amount you owe on the loan. For example, if your vehicle’s ACV is $5,000 and you owe $3,000, you have $2,000 in equity that can be used as a down payment toward the new car purchase.
If your trade in’s ACV is $3,000 and your loan pay off is $5,000, you have negative equity.
When faced with negative equity in a trade-in, you’ll need to weigh all of your options. There are three main courses of action you can take:
- Pay off the difference – This is ideal if your negative equity amount isn’t too high and you have the cash. Not everyone is in a position to do this.
- Roll it over – “Roll over” the negative equity into the new loan. Not all lenders are willing to do this, so make sure you ask if this is an option. The downside to rolling over negative equity is that you’ll be increasing the amount of your new loan, which will increase the monthly payment. However, in many cases, when it’s amortized over the full term of the loan, it is affordable.
- Wait it out – The last option is to wait until there’s no negative equity. Waiting until your trade-in is paid off or the loan reaches a point where there is equity could make your next car purchase easier – but it’s not a guarantee. Trade in values fluctuate and now may be the best time to buy.
The only way to know for sure on trading in your car or truck as a down payment…
…is to visit a trusted Denver dealer who’s got many years of experience providing seasoned advice and helping people get the best car loan.
Dye Autos in the Denver – Wheatridge area is ready to help you find the used car or truck of your dreams. Call us at (303) 286-1665 or complete our handy online form >>here<<. We’ll be in touch!
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There’s a lot of cool things a truck can do like haul your stuff, tow your trailer or boat, and be your work partner. But there’s a great way to “get off the grid” for awhile with truck camping.
Colorado has so much to offer and the best road trips happen in a pickup truck.
The mention of truck camping can elicit weird looks from some people but for those that have tried it, it’s pretty awesome.
If you’ve trekked the most challenging, beautiful trails out there and camped like nobody’s business, you might be tired of camping in the same camping tent all the time and want a change.
If you’re looking for something new and refreshing in the hiking world, it’s time to pack a pickup truck and hit the great outdoors for some truck camping.
For those unfamiliar with the benefits of truck camping, have no fear. We’ve got some compelling tips to introduce you to this new road trip option.
What is truck camping?
Truck camping is simply camping inside your vehicle instead of in a tent, be it a pickup truck with a topper or a simple SUV. Some people prefer roof top tents or pickup truck and canopy combos, but it all stems from your truck as the place you sleep.
Truck camping is super affordable.
Staying in hotels for any length of time can be expensive. Camping isn’t free most places but $25 per night is a steal compared to hotels. You can save your money for dinner and drinks!
The ideal sleeping setup.
There are different truck camping options ranging from a roof top tent, a truck bed camper, a pickup/canopy combo, or even a truck bed tent.
You’ll most likely have sleeping bags or a comforter but if you plan to sleep in the bed, you’ll definitely want something cushy underneath you. A tri-fold mattress is a good choice. It won’t take up a lot of headroom and it will let you sleep comfortably.
Unless the third person is a small child, two is the most you’ll be able to comfortably fit in your truck.
Truck camping beats tent camping.
When compared with tent camping, truck camping has many advantages.
- If the weather is challenging once you arrive, it’s not going to be fun setting up a tent. Your truck stays nice and dry and requires very little set up.
- No worries about animals visiting you during the night.
- Your truck bed is soft and even so you won’t be sleeping on a rock.
- Trucks are built to keep out noises so it will be more quiet.
Enjoy more time in nature.
Truck camping is one of the best ways to get out there on the road and have a good time. You’ll have experiences you’d never have if you stayed in a hotel or AirBnB.
Think of the adventures you’ll have…and the stories you’ll be able to tell!
Fresh air, rain and bugs.
Two bodies in a vehicle can get pretty warm when the windows are fully closed. If it’s already warm out, the added heat will make it too hot to sleep in. Two people breathing creates lots of moisture as well. The only way around this is to let fresh air in by having a window open, even if it’s just an inch. The problem is that an inch is a lot when it’s raining, and it’s enough to let bugs of all sizes in as well.
You can solve these problems by adding an Auto Vent Shade:
- It allows the windows to be cracked without letting the rain get in.
- It keeps the truck cooler when parked on hot days.
- The windows look fully closed because the vent shade hides the fact that they are open at the top.
- Bugs don’t seem to find their way in with the windows cracked, but if you’re particularly worried about mosquitos or spiders, you can’t go wrong with a Window Bug Screen.
Begin with the right truck for you.
Truck camping starts with a great truck that works for your lifestyle. If you’re like most people, you’ll be using your truck for lots of other things too and that’s where a truck expert can help you decide what works for YOU.
At Dye Autos, we have a huge assortment of affordable trucks that are ready to partner with you on your next trip – camping or otherwise. Call us at (303) 286-1665 or get in touch with us using our online form >>here<<.
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Colorado’s love affair with the pickup truck has only become more passionate.
Although total U.S. auto sales eased slightly last year, automakers sold 2.8 million full and mid-size pickup trucks in 2017, a 4.8% increase over the prior year. Pickup trucks now account for 16.4% of U.S. auto sales. That’s up from 15.3 % in 2016.
Used truck registrations in Colorado were up even more, at 17%.
Today’s pickups are safer and more comfortable, and sales to women and families are on the rise. Could one be right for you?
If you’re wondering about the reasons to buy a pickup truck, or you’re curious about the benefits of owning a pickup truck, you’ve come to the right place!
We sell a lot of trucks here at Dye Autos in the Wheat Ridge/Denver area and we’ve found that our customers really love their trucks, and are often surprised by how resourceful they are. Here are 7 benefits you’ll enjoy when you own a pickup truck.
1. Versatile
Pickup trucks support all kinds of activity.
All it takes is a couch or armoire that needs to be moved from “here” to “there,” and next thing you know, you’re thinking you really should own a pickup truck.
But there are so many other activities the a pickup truck is perfect for:
- Perfect weekend adventure vehicle.
- The power to tow whatever you need.
- Haul everything from groceries to lumber to tools.
- A camper’s dream.
- Pickup trucks help you work hard and when it’s time to relax, they help you do that too!
Think of all the incredibly cool things you could be doing with a pickup truck that are impossible with the car you’re now driving.
2. Safety.
While all vehicles these days are loaded with safety technologies such as airbags and side impact beams, driving a pickup truck is still a safer bet. Why? Sitting up high offers great visibility of the road and other drivers.
Most pickup trucks are heavier than a coupe or sedan and many SUVs. Physics will tell you that when two objects collide, mass does matter. Pickup trucks are the larger of the two vehicles, thereby increasing the chance that you’ll walk away unharmed.
There are studies to back this up. “In its studies, the Insurance Institute for Highway Safety (IIHS) has found that a heavier vehicle will typically push a lighter one backward during the impact,” explains Edmunds.com. “As a result, there is less force on the occupants of the heavier vehicle and more on those in the lighter vehicle, according to IIHS. The organization’s fatality data bears this out.”
3. Hauling and towing.
Most people think of hauling and towing things first when they consider getting a truck. It’s one of the biggest benefits of owning a pickup truck – the ability to throw a lot of stuff in the back or haul a heavy trailer. You can transport all your stuff and not have to bug someone else for help or rent a truck. It’s one of the defining arguments in the truck vs SUV debate.
To choose the best pickup for towing, truck shoppers should consider the factors that contribute to towing capability. Start by asking yourself two simple questions will help you narrow your choices:
- What do you plan to tow?
- How will you use your pickup when you’re not towing?
If you’ll often use your pickup without the trailer, you’ll want to choose a vehicle that suits those needs, too. You’ll want to choose a lighter or more-efficient pickup that’s able to handle your trailer but is also a ride that you can live with every day.
4. Respect.
It might seem funny, but people treat you differently when you roll up in a truck. If you don’t believe that, try renting one for a week and see for yourself.
People will treat you like a confident, self-assured individual who isn’t afraid to get your hands dirty. You’ll get called “boss” by random strangers, something they’d never say if you had just climbed out of a sedan.
Be warned that there’s a downside to all that respect, because people might respect you enough to ask for help moving.
5. Perfect weekend adventure vehicle.
Even though they’re a bit softer on the inside, pickup trucks are still designed to conquer difficult terrain. No matter what the road conditions, a modern pickup truck can push through and get you to your destination.
Whether you need to traverse an off-road trail to get to your favorite remote campsite or pound snowdrifts into submission to get to the ski resort, a good, properly equipped pickup can get you there.
6. Luxury.
Today’s pickup trucks come with all the creature comforts you see on luxury car models.
The benefit of driving a pickup truck is that if you have a family or want to take a group of people with you, you don’t have to contend with cramped rear seats. Models with cabs make it easy for adults to get in and out. The middle rear seat isn’t some pathetic cushion only large enough for a teddy bear – it can accommodate a full-grown adult.
Legroom, headroom and shoulder room are also ample, which is a luxury you just don’t get in many vehicles.
7. More bang for your buck.
Pickup trucks are affordable. Used pickup truck models are especially affordable and often retain their value. At Dye Autos, we’ve got a large inventory of affordable pickup trucks for every budget.
Are you ready to take advantage of all these pickup truck benefits? Call us at (303) 286-1665.
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Many consumers believe you can’t finance a used pickup truck or car. The fact is, used car dealers have some of the best financing available. They work with credit unions and banks to get the most attractive terms and pass them onto you. Like all loans, making a down payment is advantageous. But how much should you actually put down on a pickup truck?
A down payment isn’t always required for purchase, but it’s definitely a good idea.
Why?
- It will reduce the amount you’ll need to borrow.
- It improves your chances of loan approval.
- You may get better terms with a down payment.
- It will reduce your monthly payment.
First, let’s define down payment.
The phrase is actually derived from the old practice of putting money down on the table to show a seller good faith when negotiating a deal. Today, the down payment is simply a way of reducing the amount of risk a lender has to take when helping you make a substantial purchase.
Down payment isn’t always cash.
Your trade-in vehicle can serve as a down payment. If you still owe on that loan, the amount of “equity” you have can serve as your down payment. “Equity” is the difference between your trade-in’s loan payoff amount and the actual cash value of your car.
If you have a trade-in, and if you can swing it, any additional down payment – even a few hundred dollars – has a very positive effect in the long term.
For more pickup financing tips, check out our post: “Answers to Your 6 Biggest Used Car Financing Questions”
To determine the amount your down payment should be on a pickup truck, consider these two important factors.
1. Credit Score.
Before attempting to finance any purchase, you should always know your credit score.
Check your credit report as soon as you start thinking about buying a used car or truck, even if it’s months in advance. If you’ve got less-than-ideal credit, taking this action will help you even more…and save you tons of time and money.
By cleaning up your credit before applying for a loan, you improve your chances of being approved with decent terms. Cleaning up your credit will include paying off past due accounts, disputing credit report errors, and adding positive information to your credit report.
ProTip: You can obtain a FREE credit report.
When you check your credit score, be sure to focus on where you fall in comparison to other consumers, and what areas of your credit are strong — and what might need some work.
FTC (Federal Trade Commission) Website: You’re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. Order online from annualcreditreport.com, the only authorized website for free credit reports, or call 1-877-322-8228. You will need to provide your name, address, social security number, and date of birth to verify your identity.
2. Your Monthly budget.
The bigger your down payment the lower your monthly payment will be.
For a used pickup truck loan, you generally want to put down 10% or more of the vehicle’s sale price if you want to reduce your monthly payment. For example, if you want to finance the purchase of a $15,000 pickup, you should plan to put at least $1,500 down. Lenders may require more down payment depending on your creditworthiness.
Generally, for every $1,000 of down payment you apply, you can expect your monthly payment to drop by about $25 to $30, depending on the interest rate.
Depending on your credit score, current interest rates and the type of pickup truck you want to buy, you may not need a large down payment. Some people like to finance as much as possible and keep their cash for other things.
Where do I go to learn more?
Each vehicle sale is different but at Dye Autos, we’ve sold thousands of pickup trucks and we’ve helped a lot of people who thought they’d never be able to afford a vehicle.
Give us a chance to help you. Call us at (303) 286-1665 or use our handy online financing pre-approval form >>here<<.
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There’s a lot of talk in the news about self-driving cars and ride sharing. So much so that it’s easy to forget about our day-to-day realities as drivers. News outlets urge us to consider our environmental impact or spend less time behind the wheel. But that’s caused us to forget the #1 reason most of us buy vehicles today – practicality.
Want to know what’s the most practical vehicle out there? The pickup truck.
It will be years before self-driving cars will be safe on the road and while ride-sharing can work in certain circumstances, most of us need our vehicles to take us through our daily lives. There’s no better vehicle to handle all that life brings than a pickup truck.
If you’re in the market for a vehicle and you’ve only thought about a car, here are 4 reasons to buy a pickup truck instead.
#1: Pickup trucks support every activity
All it takes is a couch or armoire that needs to be moved from “here” to “there,” and next thing you know, you’re thinking you really should own a pickup truck.
But there are so many other activities that a pickup truck is perfect for:
- Trucks are the perfect weekend adventure vehicle.
- Trucks have the power to tow whatever you need.
- Trucks haul everything from groceries to lumber to tools.
- Trucks are a camper’s dream.
- Pickup trucks help you work hard and when it’s time to relax, they help you do that too!
Think of all the incredibly cool things you could be doing with a pickup truck that are impossible with the car you’re now driving.
#2 Pickup trucks are safer
It may seem obvious that larger pickup trucks are safer than small cars, but there are studies to back this up.
“In its studies, the Insurance Institute for Highway Safety (IIHS) has found that a heavier vehicle will typically push a lighter one backward during the impact,” explains Edmunds.com. “As a result, there is less force on the occupants of the heavier vehicle and more on those in the lighter vehicle, according to IIHS. The organization’s fatality data bears this out.”
Additionally, sitting up high gives a driver an excellent field of view. The ability to see over traffic enables the driver to identify potential accidents sooner and react with more time than passenger car drivers, whose vision is hindered by other vehicles.
#3 Pickup trucks are roomy
We know pickup trucks can haul just about anything, but people who haven’t ridden in a modern truck are always surprised by how roomy they are inside.
A four-door F-150 has a half-inch more rear-seat legroom than a Mercedes flagship luxury sedan—the $90,000+ S-Class—and much more head, shoulder, and hip room. Other full-size trucks offer similar space.
#4 Pickup trucks are affordable
Pickup trucks offer more bang for your buck than most cars:
- Enough power to tow or haul virtually anything
- More interior space than a luxury car
- Enough horsepower to get up and go
- Enough room in the bed for two people to sleep comfortably
- Surprisingly good fuel economy, given all the above
Combine all these merits into one vehicle and the result is surprisingly affordable.
Choosing the right pickup truck for you…
The only thing left to do is decide which pickup truck works for your lifestyle. We wrote a super helpful post about how to choose the best pickup truck for your needs >>here<<.
At Dye Autos, we’ve got a lot of pickup trucks – many under $20,000. We’re ready to help you determine which used pickup truck works for your lifestyle and your financial needs. Call us at (303) 286-1665 or fill out our handy online form >>here<<.
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