Trading in Old car that I owe money on.

[SketchMaster]

I bought a used 2003 Suzuki Aerio SX with 75K over eight months ago and in that time I grew to hate it. MPG wasn't great for the HP, loud on highway, seats arn't comfy if you have to drive more than an hour, auto transmission is annoying and so on.

But it did what I bought it for, it got me to and from work and helped build my credit. Now with 81K miles on it I've broke even with the car, I owe what it's worth for trade-in ($5,000) so I started looking around. I found a car and we started talking numbers.

What they want to do it tack the payoff into my new loan, making the payments too high. What I was hoping I could do was basically have them take the car and pay the loan but I get no trade value for it and be done with it. I know they can sell the car for at the very least $6k but most likely it will go for $7k, for some reason Aerios got really popular around here in the past few months. So they will make back their money plus some and sold a new car.


What are the odd that I could talk them into this? I would try selling the car myself but I'm really geting sick of driving it and just want this to be done with.

 

[dainthomas]

Why would you give them a car, and still have to pay it off?

 

[mcvickj]

No idea. Tell them that this is a deal breaker. Either they accept the Aeiro and pay off the loan or you walk out the door and find someone else who is willing to deal. Be prepared to walk.

 

[Mermaidman]

Originally posted by: dainthomas
Why would you give them a car, and still have to pay it off?

Because the OP is not aware that the dealer is giving him squat on the trade-in.

 

[SketchMaster]

Originally posted by: dainthomas
Why would you give them a car, and still have to pay it off?

No, I would give them it if they promised not to add the payoff onto my new loan. I don't gain anything but I don't lose anything, I just want the car gone.

Edit: I've looked up KBB on the car and I know what it's worth, Mermaidman.

Squat.

 

[Mermaidman]

Look at the proposed deal and tell us what they have offered you on the trade-in. The dealer has either jacked up the price of the car you want to buy, or low-balling you on the trade-in.

 

[DougK62]

Originally posted by: SketchMaster

Originally posted by: dainthomas
Why would you give them a car, and still have to pay it off?

No, I would give them it if they promised not to add the payoff onto my new loan. I don't gain anything but I don't lose anything, I just want the car gone.

Edit: I've looked up KBB on the car and I know what it's worth, Mermaidman.

Squat.

Then why not sell it privately? You'll even get more money. You said that the cars are popular in your area so it should move quickly.

Or are you lazy?

 

[Dirigible]

If you owe $5k, and the car has gotten popular and sells for $6k - $7k, why wouldn't you sell it yourself and put the proceeds towards your new car? Yeah, private sales go for less than from dealer, but if they also go for more than trade in value, which you say is $5k. So you'd come out ahead.

 

[Dirigible]

Dang. DougK62 beat me to it.

 

[Mermaidman]

. . . Now with 81K miles on it I've broke even with the car, I owe what it's worth for trade-in ($5,000)

In your original post, you say you owe $5000--that's a sizable amount.

 

[SketchMaster]

Not so much lazy, DougK62. More or less impatient. the car has been a pain since the first month I've owned it, I really would like to see it gone. Though I have given thought to selling it.

 

[SketchMaster]

The other thing that is making me hold back on selling is the car does have mechanical problems. The transmission feels like it's starting to go and for a while it would randomly down shift when it was cold outside. also, the engine will sometimes bog when you give it more than 1/4 throttle.

I don't know if I like the idea of selling a car with problems, for one I won't get as much for it (because I would tell the would-be buyer about it) and two I would worry about who ever I sold it to would try giving it back or calling me all the time. If I gave it to the dealership they would be the ones that have to deal with it.

 

[huberm]

you may have just misunderstood how the dealer showed you the deal on paper. Typically if you have a trade in, this will equate into the new loan under "trade difference". So it would appear thatthey are just tacking that onto your new loan, but that isn't the case if they offer you 5k and you only owe 5k.

If you trade it in, the dealer will pay off the old loan for you with the proceeds. They cannot sell your car without title in hand.

 

[chairbornrangerx]

just flat out tell them, like hey... if you can make this happen I'll get a car from you, otherwise I'm walking out the door and I will find someplace that will, its that simple.

 

[SketchMaster]

No, huberm. I asked them why the payments were so high and he said because the payoff for the trade was being tacked onto the new loan.

 

[dainthomas]

Originally posted by: SketchMaster
No, huberm. I asked them why the payments were so high and he said because the payoff for the trade was being tacked onto the new loan.

The only way this is correct is if they're giving you $0 for your trade. I'm almost positive you can find a better deal than that. :roll:

 

[waggy]

Originally posted by: dainthomas

Originally posted by: SketchMaster
No, huberm. I asked them why the payments were so high and he said because the payoff for the trade was being tacked onto the new loan.

The only way this is correct is if they're giving you $0 for your trade. I'm almost positive you can find a better deal than that. :roll:

I'm not sure.

they can tell when they have someone that can't/won't demand a better deal.

 

[jlbenedict]

Originally posted by: SketchMaster
No, huberm. I asked them why the payments were so high and he said because the payoff for the trade was being tacked onto the new loan.

They are giving you less trade-in value than what you owe on your current loan. Then, the deficiency balance is carried over into the new car loan.



Shop around.

To help with a vehicle trade-in that you owe on:
1) The potential new vehicle that you are looking to finance should offer a rebate and/or incentives. This would help you if the dealer gave you less on your trade-in than what you actually owe.

But, if you truely believe your vehicle is worth $5,000, then find a dealer that will give you $5k as trade in.

 

[SketchMaster]

So I just got off the phone with the guy and it turns out I misunderstood what he said. It will be a wash, I won't get anything for it but the loan will be paid in full and gone forever.

And now they are playing the "we can get you an awesome deal" game. Turns out they are moving their store and they want to get rid of some cars so they have all sorts of incentives going on. But I'm not signing any papers unless my bro-in-law who is an accountant is there to look over all the numbers, because I know they will try and shaft me some ware in the deal.

That and I suck at math...