Car dealers dangle overtrades to ease downpayments
The "overtrade" is back.
The practice - in which motor firms offer substantially higher trade-in rates for used cars than market prices - was rampant in the 1990s when the Government first curbed car loans.
Now, as before, the overtrade is designed to help car buyers offset the high downpayment they have to make after new loan restrictions were introduced six months ago.
It works like this: A buyer of a new $100,000 car will have to fork out at least $40,000 for downpayment.