Wanting to downgrade my car

Blackjack200 · 12-19-2012, 12:07 PM

So I have a 2011 Prius, and while I love the gas mileage, I hate almost everything else.

I'd like to get rid of it and replace it with a much cheaper car, I'm probably a little bit upside down on the loan (I owe just shy of $24k) but I can easily cover the difference. What would be the best way to get rid of it? Trade in at a dealer for a cheaper car? (would they even do this?) Sell it back to the dealer? (would they even do this?)

What about a private party sale? How would that even work with the bank? I can cover the entire note if it would be easiest/best to just get the title free and clear from the bank first.

MixMasterTang · 12-19-2012, 12:39 PM

What do you hate about it that you think a cheaper car is going to fix?

Blackjack200 · 12-19-2012, 12:44 PM

Mainly paying the note.

Fritzo · 12-19-2012, 02:24 PM

You would have to pay it off first, or you would have to have the buyer take over payments + cash.

Blackjack200 · 12-19-2012, 02:37 PM

Quote:

Originally Posted by Fritzo

You would have to pay it off first, or you would have to have the buyer take over payments + cash.

The lender (Toyota Financial Services) would allow that? Or are you saying do it under the table? I don't know if I'd be comfortable with that, if the buyer stops making payments that leaves me holding the bag, right?

mvbighead · 12-19-2012, 02:48 PM

Pretty easy, really.

Depending on what you can get for it, you work it out with your buyer that they meet you at your bank to work on paying it off through the bank. If you have to add to that, you need to have the money available at the time you sell it. Get it paid off at the bank, and hand the buyer the keys when the transaction is clear (IE - don't take a check that hasn't been validated).

When done, the bank will send you the title, and you can later transfer that to the buyer.

I've purchased a vehicle of lesser value this way. Just make sure the buyer's payment is confirmed at the bank before you hand them the keys.

Now, there may be a way to hand over the loan to someone else, but I've done the above with little trouble.

Mermaidman · 12-19-2012, 02:58 PM

Two big hurdles for you:
-Dealers will buy your car, but they will pay you less than if you sell it on your own to another private buyer, but

-Selling a new-ish (expensive) car on your own can be difficult because people want financing, and it seems like many of these people don't grasp the concept of getting loans at a bank or credit union. (They're used to getting loans through a car dealer.)

Luckily for you, the Prius is in high demand, so it will sell fast, but you're going to lose lots of money. Not only do you need to pay the balance of your loan, but then you'll need to buy another car!

Hopefully this is not too painful a lesson.

(Don't ever let someone "take over payments!")

mvbighead · 12-19-2012, 03:33 PM

Quote:

Originally Posted by Mermaidman

Two big hurdles for you:
-Dealers will buy your car, but they will pay you less than if you sell it on your own to another private buyer, but

-Selling a new-ish (expensive) car on your own can be difficult because people want financing, and it seems like many of these people don't grasp the concept of getting loans at a bank or credit union. (They're used to getting loans through a car dealer.)

Luckily for you, the Prius is in high demand, so it will sell fast, but you're going to lose lots of money. Not only do you need to pay the balance of your loan, but then you'll need to buy another car!

Hopefully this is not too painful a lesson.

(Don't ever let someone "take over payments!")

Actually, you have the ability to ignore whatever offers you don't like. It's craigslist afterall. So, shoot for a number you can live with, and wait it out.

You don't have to lose LOTs. You'll likely lose if you're upside down, but that's what you get with new cars. And generally speaking, if you can work the deal right, you can get your loan payed off on the spot of the sale. It's generally more comfortable for all parties involved to meet at a bank.

Blackjack200 · 12-19-2012, 03:55 PM

So the bank acts as the title company? Would the bank need to be my lending bank (because they hold the title) or could it be his lender? I'm asking because my lender is Toyota Financial Services.

dbk · 12-19-2012, 04:04 PM

Replace "bank" with "Toyota Financial Svc"

Blackjack200 · 12-19-2012, 04:17 PM

Quote:

Originally Posted by dbk

Replace "bank" with "Toyota Financial Svc"

This is what I'm confused about. How do I "meet at TFS"? The dealership? If so, would it have to be the dealer I bought the car at? I'm asking because I bought the car 50 miles from my house and that would be a PITA.

edit: I'm comfortable buying and selling a house, but have no clue how to sell a car to a private party. Fail.

boomhower · 12-19-2012, 04:34 PM

Run it by Carmax. I've been shocked at what they will pay for in demand cars. As mentioned private party buyers can have trouble getting financing buying from an individual.

power_hour · 12-19-2012, 09:47 PM

Just pay it off now and then put an Ad up.

Prius will sell very fast for asking unless you destroyed it.
Don't dealer trade as you will get ripped.

And make sure you demand a bank transfer. Lots of scammers and phony cert. checks.

Downgrading from Prius is basically a used Corolla or Civic.
Unless cash is the issue, I really don't see how this makes any sense.

Mermaidman · 12-19-2012, 11:30 PM

http://www.cars.com/go/advice/Story....bject=how_sell

http://banking.about.com/od/autoloan...ith-A-Loan.htm

NutBucket · 12-20-2012, 01:12 AM

Quote:

Originally Posted by power_hour

Just pay it off now and then put an Ad up.

Prius will sell very fast for asking unless you destroyed it.
Don't dealer trade as you will get ripped.

And make sure you demand a bank transfer. Lots of scammers and phony cert. checks.

Downgrading from Prius is basically a used Corolla or Civic.
Unless cash is the issue, I really don't see how this makes any sense.

I think he means he can cover the value/loan difference, not the entire loan amount

Blackjack200 · 12-20-2012, 08:35 AM

Hmm, don't know if I'm going to do this after all. I was assuming I could get ~22k since I bought it for 24 and it had a sticker of $26k. But I looked on Craigslist and people seem like they're only asking $18-$19k for 2011 Priuses. Damn, I thought they held their value better than that.

It's not a huge deal, I can afford it, I just want to spend the money on other things. /shrug

mvbighead · 12-20-2012, 09:56 AM

Quote:

Originally Posted by Blackjack200

So the bank acts as the title company? Would the bank need to be my lending bank (because they hold the title) or could it be his lender? I'm asking because my lender is Toyota Financial Services.

From my dealings with this sort of thing, the bank with the loan possesses the title. If you stop paying the loan, they have the right to repossess your vehicle to try to recoup some of their loss.

That being said, the title is generally the last thing to change hands, and in my past dealings, it has always been mailed to the purchaser after the payment has been verified and the title is received. In fact, I've left insurance on vehicles until payment is cleared, even if the other guy has taken possession.

Basically, you get payment direct from their bank in the form of a check. IE - You go in and the teller at the bank hands you a cashier's check from the bank. You give the keys to the buyer. You go to your bank and put that check and any necessary additional funds against your loan. (If you can, go to your loan office in advance and get a loan payoff "ticket." This tells you the exact amount you need to payoff your loan by X date.) Then just pay it off, and they'll send you the title. You fill out the title, and send it to the buyer.

Pretty easy really.

jagec · 12-20-2012, 11:13 AM

Quote:

Originally Posted by Blackjack200

Hmm, don't know if I'm going to do this after all. I was assuming I could get ~22k since I bought it for 24 and it had a sticker of $26k.

You can generally knock 10% off of the price you paid the second the car drives off the lot. No way your car would have depreciated by only $2k in 2 years. Priuses are no longer the limited commodity that they were when they first came out.

mvbighead · 12-20-2012, 12:20 PM

Quote:

Originally Posted by jagec

You can generally knock 10% off of the price you paid the second the car drives off the lot. No way your car would have only depreciated by only $2k in 2 years. Priuses are no longer the limited commodity that they were when they first came out.

This, and it applies to pretty much ANY new car.

If my option, as a buyer, is 22k for a gently used one, or 24k for a brand spanking new one... I am buying new every single time and not ever thinking twice about it. Gently used is great, but only when it nets me 75% of the retail purchase price of new. Elsewise, brand new for an extra 10%... easy decision, IMO.

Blackjack200 · 12-21-2012, 09:56 AM

Yeah, but it really was a $26k car (Prius III). I got it for $24k because it was a one year old model (2011 and bought it eight months ago) and I searched the area for the lowest cost Prius.

Anyway, it's pointless for me to argue, the market is what it is, I just thought it would hold its value a little better than that.

halik · 12-21-2012, 10:02 AM

Did you buy it new? If so, ouch.

deadken · 12-23-2012, 03:48 PM

I must really need some sleep. After reading this thread title, the first thing that ran through my head is that the OP should put on some of those stupid chrome fake vents, scoops, turbo emblems, etc...

I guess I just read "Wanting to downgrade my car" in a completely different way than intended.

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