If you buy a new car that offers a rebate and use that rebate to make up for negative equity in your trade in is it possible to trade the new vehicle in within a month to get good deal on another car?

Answer

Technically yes, but count on the fact that if the vehicle you are buying has a high rebate amount, they will give you much less on the trade value. Check www.edmunds.com, www.nada.com and www.kbb.com and compare those trade values on the prospective vehicle first.

== Ans ==

First, regardless of what you used the rebate for, it really doesn't matter in a financial way.

Second, and more importantly - the used (only dealers call them pre-owned...but their still used) car you then have to sell, is worth MUCH LESS than the new one the dealer sold you. Even if it was the same day you got it. There is nothing special about it...it's even still available to anyone. Maybe for less than you paid!

Third - any and all costs of buying that new car...dealer fees, title fees, etc, and sales taxes, are not recovered when you sell the car used to someone else.

Fourth - Most dealers aren't interested in giving you a good deal to get an almost new car...it conflicts/competes with their selling new cars (in all the wrong ways)....and used car dealers would only want a slightly used car at a very, very much reduced price to what other dealers sell it for (and consider they can buy them inter-dealer at a discount anyway).

Fifth - The one who takes the trade needs to be able to market and sell it, in spite of the above challenges, for a good deal more than they give you...just to pay the commissions, lot fees, insurance, carrying charges, advertising, etc.

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