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.