Best way to end auto loan?

[Insomniator]

We have a 2014 Evoque with 28k remaining. Private sale the car might be worth about that much, or only a few grand less.

We have no issues with the car or continuing to pay it monthly, but we now may have an opportunity to take advantage of a better car deal through work.

Should we try to sell the car for as much as we can and take the hit? Basically do the calculation to see if its worth it to sell for say 26k and how long it would take to recoup the 2k hit?

The car through work would be for my wife. I'm actually interested in a used sports car maybe for around the 28k we have left. Can you trade cars you still money on to a dealer? I'm guessing they'd screw me over totally that way. Say I found some car I liked that cost 28k -- is there any process to moving my loan over?

 

[repoman0]

A bank chose to finance you for that specific car -- they own the car, they have the title, I doubt there's a process for them to change the loan over to a new asset. You should be looking at paying the loan off and getting a new one. A dealer or car buyer like Carmax will take down your loan information and pay it off, with the difference paid by you on the spot or extra given to you on the spot, whatever the case may be.

Carmax will likely offer you a pretty decent price, by the way, it could be worth it to get their offer first and foremost. It will almost certainly be more than the trade in value.

 

[Insomniator]

Yeah, an easy offer might be the best way to go. Even if it cost me a few grand.

Here's another question, kind of estimating. I'm paying 600 a month for the car -- what do we think about the payments as being faster or slower than depreciation? Like in 4 months we'll have driven only another... 2k miles but will owe 2500 less on the car. If its worth 26k now is it worth only 23.5k in 4 months?

 

[jlee]

Yeah, an easy offer might be the best way to go. Even if it cost me a few grand.

Here's another question, kind of estimating. I'm paying 600 a month for the car -- what do we think about the payments as being faster or slower than depreciation? Like in 4 months we'll have driven only another... 2k miles but will owe 2500 less on the car. If its worth 26k now is it worth only 23.5k in 4 months?

How much are listed cars similar to yours? How much are listed cars similar to yours but with 2k more miles? Or last year's model with 10k more miles? That should give you a rough approximation of your future value.

 

[Dr. Detroit]

CarMax has 27 2014 Evoques on various lots -

CarMax will probably give you $3K less than they are selling for.

https://www.carmax.com/search#Dista...r=2014&Page=1&PerPage=20&SortKey=14&Zip=95050

 

[deadlyapp]

You can absolutely trade in your vehicle and have them roll whatever amount of the loan that is "extra" over the value of the car into the new vehicle, however you'll be heavily underwater on the new loan and you may not even get it approved.

Usually, I would recommend paying off the loan however you can, then selling it privately, however most people don't have the liquidity you need. You could try to sell the car privately and raise enough value to pay the loan off, however some people wouldn't be OK with the amount of time it would take to do that.

In this case, you may be screwed and might have to eat whatever underwater cost you have.

At some point, yes you'll hit a break even point, but as you say, your car may depreciate faster than you pay it off. This happens quite often with new cars that depreciate very fast, like range rovers.

Edit: I'd avoid carmax however you can. They'll totally fuck you on value. Expect 6-7k less than it blue books for.

 

[repoman0]

Edit: I'd avoid carmax however you can. They'll totally fuck you on value. Expect 6-7k less than it blue books for.

False. I've had them offer $1.5k under all the way up to blue book value for different vehicles. They don't even use book value as their metric.

 

[deadlyapp]

False. I've had them offer $1.5k under all the way up to blue book value for different vehicles. They don't even use book value as their metric.

We'll then you're luckier than me. I had them offer 8k for my Ranger which I then turned around and sold for 15k.

 

[Chess]

CarMax has 27 2014 Evoques on various lots -

CarMax will probably give you $3K less than they are selling for.

https://www.carmax.com/search#Distance=all&ExposedCategories=249+250+1001+1000+265+999+772&ExposedDimensions=249+250+1001+1000+265+999+772&FreeText=Land Rover Range Rover Evoque&MaxYear=2014&MinYear=2014&Page=1&PerPage=20&SortKey=14&Zip=95050

Yup @Dr. Detroit is right, and they wont haggle, its this price.. take it or leave it

 

[NutBucket]

False. I've had them offer $1.5k under all the way up to blue book value for different vehicles. They don't even use book value as their metric.

Blue book is crap. IMHO they probably rely on current auction prices which are pretty depressing usually LOL.

That said, a dealer will generally give you a good price if your car can easily be sold on their lot. Otherwise all bets are off.

 

[soulcougher73]

Yeah id hit up a carmax. They will give you what they will offer within 15 mins usually. And i believe the offer is good for like 3 days to think about it.

 

[ondma]

A bank chose to finance you for that specific car -- they own the car, they have the title, I doubt there's a process for them to change the loan over to a new asset. You should be looking at paying the loan off and getting a new one. A dealer or car buyer like Carmax will take down your loan information and pay it off, with the difference paid by you on the spot or extra given to you on the spot, whatever the case may be.

Carmax will likely offer you a pretty decent price by the way, it could be worth it to get their offer first and foremost. It will almost certainly be more than the trade in value.

Technically, I think that the buyer "owns" the car, but the bank has a secured interest in it. The end result is the same though, if you dont make your payments, the bank gets the car. It could also vary from state to state or in different countries.

As for the best course of action, it is really hard to say. Trading it in will probably be the worst financial choice, but will be the least hassle. Personally, I have never looked at selling a car to a dealer, as I assume they are going to lowball you. Selling to a private party usually will give the best price, but requires more time and effort. Obviously, the best financial course is to explore all the options and choose the one which costs you the least out of pocket.

 

[mizzou]

Somewhere, Dave Ramsey is crying.

 

[Zivic]

Somewhere, Dave Ramsey is crying.

sometimes it makes me feel better about myself that people out there are asking these kinds of questions and making worse financial decisions than me

 

[Scarpozzi]

sometimes it makes me feel better about myself that people out there are asking these kinds of questions and making worse financial decisions than me

Used car prices are a total mess. I always reference how car companies will purposefully inflate their MSRP with full intention to offer rebates. This is a scam to get people to bite on the sale, but serves as a secondary means to boost used car prices for their brand. That helps them two ways...1. Promotes more asking price for used cars based on the MSRP minus depreciation instead of MSPR minus rebates minus depreciation.... 2. Creates less of a gap between late model and new car prices....which boosts new car sales which earns more for the dealership. Basically, car salesmen and dealers always make money and they provide very little service/value overall.

 

[Meghan54]

Blue book is crap. IMHO they probably rely on current auction prices which are pretty depressing usually LOL.

That said, a dealer will generally give you a good price if your car can easily be sold on their lot. Otherwise all bets are off.

What's even more disingenuous is dealers advertising how far below "Blue Book" values they've priced their vehicles when the Blue Book is meaningless to car dealers.....they use the Black Book, released weekly, and is a reflection of auction prices from various auto auction houses, esp. Manheim.

https://www.blackbook.com/

https://www.manheim.com/

 

[NutBucket]

I wish I had a friend with access to those auctions....for nothing else just to have price info.