Aug
13
Where can I find answers to a car loan that I currently have?
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I got a new car with a loan from my bank , but I need to trade the car in for a cheaper one. Can I?I got the car in November and had to use an auto loan from my bank rather than the dealership. I’ve come into some issues and might need to get...
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4 Comments
August 14th, 2009 at 1:49 pm
This is kind of an open ended question but I would say talk to the finance manager where you purchased your vehicle. Tell him you want a lower payment and ask him if you traded in your current car would it worsen your situation (way upside down in it, which means you owe more than it’s worth) or help your situation by allowing you to get into less car and a cheaper payment. Hope that helps, I think that is what you were asking.
August 17th, 2009 at 1:56 pm
The answer would be that you would have to pay off the $23,500 loan first, how you do that is up to you, you could pay it straight off or you could sell the car to someone else for the same amount and pay it off. Then you would go back to a dealership and look at a good used car for half the amount. You could go back to the same place you bought the other car.
August 19th, 2009 at 8:08 pm
Call the lending institution who carries your loan. Ask for the pay-off amount and how long it’s good for.
Now armed with this info, walk into the dealership, work your deal, when asked if you have a trade and if you hold title, you tell them the truth, “no, but I have the pay-off number and this is the bank that has the note” then work from there.
The loan does not magically disappear, it gets rolled into your “cheaper” car.
I’ll try to break it down.
New car price + payoff – what old car is worth in trade= new amount to be financed.
Hopefully you are not too far upside down in your first loan.
August 22nd, 2009 at 9:34 pm
Your loan company can provide your current payoff amount. If you are upside down on your loan (you owe more than your car is worth), don’t trade your vehicle to a dealer. The dealer will roll your negative equity into a new loan. Even if you buy a cheaper car, your payments will likely be more than your current payments — because you’re essentially paying off two loans at the same time.