Calculating the actual cost:
Trade-in value: Subtract the trade-in value of your old car ($1,800) from the new car's sticker price ($19,750).
New car cost after trade-in = $19,750 - $1,800 = $17,950
Loan amount: Since the dealer's loan offer ($17,900) matches the new car cost after trade-in, you wouldn't be paying any additional money out of pocket.
Therefore, you're not actually paying anything beyond the trade-in of your old car.
Is it a good deal?
Assessing whether it's a good deal requires going beyond just the price and considering several factors:
Condition of the new car: Is it reliable, fuel-efficient, and meet your needs and preferences?
Interest rate on the loan: Are you getting a competitive rate?
Overall value and features: Does the car offer features and benefits that justify the price?