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Old 09-25-2006, 04:56 PM   #1 (permalink)
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Default How to trade a car that is still owed money on, for a paid-for car???

Hypothetical situation here.

let's say I'm looking to trade my SRT for something else. I still owe roughly $16,000 on the car, and right now it blue books in the $15,000-18,000 range depending on if sold to a private party or dealership.

I know I could trade it in at a dealership and they would just pay the loan and issue a new loan.

Now let's say I find a private party who has a car I want and they are interested in a straight trade.

Their car is fully paid off. Value's of the cars are similiar. How would I work a deal where I can get his car while still paying off my loan and he gets my SRT and gets the full title? Is there even a way to do this?
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Old 09-25-2006, 04:57 PM   #2 (permalink)
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If you owe that much and what not you would probably be better off to just keep the car or try and sell it in order to make some of the money back. also return the car to totally stock before selling it because that will help with your value....as far as the trading goes im not too familiar with trading witha lien.good luck though!
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Old 09-25-2006, 05:29 PM   #3 (permalink)
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get a loan on the rest of the money owned and use the new car as colateral (sp?)
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Old 09-25-2006, 05:34 PM   #4 (permalink)
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If you still owed money, you should just have to pay the remaining balance of whatever the difference is. Or if you want to get another car, you can have whatever the remaining balance is, added on to the new car loan. And yes, it can and has been done.
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Old 09-25-2006, 05:43 PM   #5 (permalink)
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Quote: Originally Posted by bast525
Hypothetical situation here.

let's say I'm looking to trade my SRT for something else. I still owe roughly $16,000 on the car, and right now it blue books in the $15,000-18,000 range depending on if sold to a private party or dealership.

I know I could trade it in at a dealership and they would just pay the loan and issue a new loan.

Now let's say I find a private party who has a car I want and they are interested in a straight trade.

Their car is fully paid off. Value's of the cars are similiar. How would I work a deal where I can get his car while still paying off my loan and he gets my SRT and gets the full title? Is there even a way to do this?

If the other party's car is paid off, they will have the Title in Hand.

You don't "techinically" own your car yet, the bank that issued the loan originally for your SRT-4 is the owner of the car, they hold the title. Since you don't own your SRT-4 yet, you can't trade it unless you pay your bank off your remaining balance of $16,000. Only then will they hand over the title so you can then do whatever you want with the SRT-4, trade it, sell it, burn it..whatever.

Now if this is a Dealer Trade.. it will be much easier.

Say the dealer has a car that cost $20,000 that you like and you want to trade your SRT-4 for it. Well sure thing, you go in, the dealer will give you "TRADE-IN - Good Cond" Value for your SRT-4, which is about $11,000.

Since you owe $16,000, and the bank won't release the title to the dealer unless they get paid in full, that is what you call being "upside down". Dealer values your car at $11,000, but you owe the bank $16,000. The dealer will write a check to your bank for $16,000, and tack on the difference of $5000 to your new car loan. So that new $20,000 car that you want will end up costing you $25,000.

Either way, you're fucked.

Last edited by WTF; 09-25-2006 at 05:51 PM.
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Old 09-25-2006, 05:45 PM   #6 (permalink)
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Old 09-26-2006, 11:31 AM   #7 (permalink)
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no I know... that's why I'd rather if possible, trade to a private party.


I think there was only one good idea there... get a personal loan in the amount I owe on the SRT, and use the car I'm trading for as collateral. Pay off the SRT then I have the new loan which is technically on the already paid off car.

I'll call around and see if my bank would even go for that sort of thing.

I've already been offered $15,500 as a trade in for my car at one dealership, when I was trying to trade in on a GTO. But in the end the payments were still way too high so I couldn't do it.

That was like 6 mos. ago... dunno what the trade in value is now but I doubt it's gone down that much. My SRT is an '05 with only 12,000 miles.
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Old 09-26-2006, 11:41 AM   #8 (permalink)
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Quote: Originally Posted by bast525
no I know... that's why I'd rather if possible, trade to a private party.


I think there was only one good idea there... get a personal loan in the amount I owe on the SRT, and use the car I'm trading for as collateral. Pay off the SRT then I have the new loan which is technically on the already paid off car.

I'll call around and see if my bank would even go for that sort of thing.

I've already been offered $15,500 as a trade in for my car at one dealership, when I was trying to trade in on a GTO. But in the end the payments were still way too high so I couldn't do it.

That was like 6 mos. ago... dunno what the trade in value is now but I doubt it's gone down that much. My SRT is an '05 with only 12,000 miles.

Prices change every week, but you should be able to get at least $15K. How much did they want for the GTO BTW?
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Old 09-26-2006, 12:17 PM   #9 (permalink)
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lol @ 15k. i work at a dealership... you will be lucky to get 12k
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Old 09-26-2006, 03:32 PM   #10 (permalink)
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Quote: Originally Posted by bast525
no I know... that's why I'd rather if possible, trade to a private party.


I think there was only one good idea there... get a personal loan in the amount I owe on the SRT, and use the car I'm trading for as collateral. Pay off the SRT then I have the new loan which is technically on the already paid off car.

I'll call around and see if my bank would even go for that sort of thing.

I've already been offered $15,500 as a trade in for my car at one dealership, when I was trying to trade in on a GTO. But in the end the payments were still way too high so I couldn't do it.

That was like 6 mos. ago... dunno what the trade in value is now but I doubt it's gone down that much. My SRT is an '05 with only 12,000 miles.

Dealers are not stupid, they don't offer you MORE for your trade in than what it says on KBB without a catch.

Most likely why they offered you 15,500 for you trade is because they will take less money off the MSRP of the GTO. They will get their money one way or another, they're sneaky as fuck, either by offereing you MORE for your trade-in to get the deal finalized and taking less off the MSRP of the GTO, or giving you less for your trade-in and taking more off the MSRP of the GTO get it? They can also fuck with the interest rate too. Hell you can get a GTO right now for about 7K off MSRP. Lets say you bring your SRT-4 in and the KBB value of it is 11,500 or 12,000. They offer your 3000 over KBB Trade in for your SRT-4, bringin the price to 15,000. You're like FUCK yeah! So you then negotiate the price of the new GTO, they will be like, hell we'll even take off 2000 off the MSRP of the GTO! You think this deal is too sweet to pass up and you sign the papers.

But in reality, you got fucked. Because if you were to walk in without a trade, you can negotiate 6-7000 off the MSRP. Now that you have a trade-in, you might have gotten more for your trade ~15,000, but you got way less of a deal on the new GTO. Get it? Hell they can even offer you 19,000 for your SRT-4, but sell the GTO to you at MSRP + TTL with a high interest rate. Like I said before, the dealers will fuck you either way.
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Old 09-27-2006, 01:17 PM   #11 (permalink)
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okay KBB trade in value for my SRT which is an '05 with 13,000 miles in GOOD condition is right about $15,000... where are you guys getting such low trade in value numbers?? Even the lowest trade in value, "fair", which is if the car has mechanical defects or whatever, is listed as $13,600. That is the trade in value, not the private party or retail value.

I"m not necessarily trading for a GTO since I have not found a dealer that will go any lower than $30k which is retarded considering I could have bought a brand new one for $25k last year (and kick myself that I passed on that and bought the SRT instead).

I'm just trying to figure out if it is possible, if I found a PRIVATE PARTY selling a car I wanted, and they were willing to trade their car for my SRT which I still owe money on, if that is possible and how it would work. I know I could take it to a dealership and trade in for some other car and they would take care of it and just give me a new loan.
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Old 09-27-2006, 02:58 PM   #12 (permalink)
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Quote: Originally Posted by bast525
okay KBB trade in value for my SRT which is an '05 with 13,000 miles in GOOD condition is right about $15,000... where are you guys getting such low trade in value numbers?? Even the lowest trade in value, "fair", which is if the car has mechanical defects or whatever, is listed as $13,600. That is the trade in value, not the private party or retail value.

I"m not necessarily trading for a GTO since I have not found a dealer that will go any lower than $30k which is retarded considering I could have bought a brand new one for $25k last year (and kick myself that I passed on that and bought the SRT instead).

I'm just trying to figure out if it is possible, if I found a PRIVATE PARTY selling a car I wanted, and they were willing to trade their car for my SRT which I still owe money on, if that is possible and how it would work. I know I could take it to a dealership and trade in for some other car and they would take care of it and just give me a new loan.

Most dealers don't use KBB when determining trade-in values, they use Galves which is usually right around or at wholesale.

As for your original question, the easiest way of doing this would be to have the other person take out a car loan in the amount of your payoff. You then take out a car loan for his car in that same amount. Exchange checks, you pay off the SRT-4 and he pays off the loan he just took out for the SRT-4. You could always just get a personal loan and pay off your car, but the apr will be higher.
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Old 09-27-2006, 07:24 PM   #13 (permalink)
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Just another anecdote, I went to a local dealership because they were selling a 330Ci here for 5 grand under KBB. They wanted to give me 9500 for my car since the Beamer was so cheap. I said screw that and weeks later they have a 2004 SRT-4 for about 16,000. Bastards I wonder how much they would have tried to sell mine for.
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Old 09-27-2006, 08:21 PM   #14 (permalink)
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It's exactly what I did. I owed $5,000+ on my last car ('03 Lancer EVO -- I owed $5,000 MORE than trade-in was worth). They gave me a trade value, and just financed the rest + the cost of the SRT ($19,000), and gave me the car.
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Old 09-27-2006, 08:27 PM   #15 (permalink)
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Quote: Originally Posted by binky
lol @ 15k. i work at a dealership... you will be lucky to get 12k

Damn, I was getting ready to go in and talk to ford about getting a powerstroke. guess ill have to sell the car private party.
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