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Message
Will a dealer cut me a check if I want to finance more than my trade in value?
Posted on 7/7/16 at 10:27 am
Posted on 7/7/16 at 10:27 am
I have a truck worth around $26000 trade in. I owe $9000 on it. So, i have $17000 equity.
My wife has a $10000 personal loan @ 7%
If i wanted to finance an extra $10k on truck, due to low auto rates, and pay off the personal loan; would the dealer allow this?
Also, are sales taxes paid on total purchase price or total minus trade in/down payment?
My wife has a $10000 personal loan @ 7%
If i wanted to finance an extra $10k on truck, due to low auto rates, and pay off the personal loan; would the dealer allow this?
Also, are sales taxes paid on total purchase price or total minus trade in/down payment?
6
Posted on 7/7/16 at 10:37 am to LSU6262
I got cash on a trade once when I was in college. Dealer made me wait until they sold my trade. Took about 3 weeks to get the check.
Posted on 7/7/16 at 10:45 am to LSU6262
quote:
I have a truck worth around $26000 trade in. I owe $9000 on it. So, i have $17000 equity.
My wife has a $10000 personal loan @ 7%
If i wanted to finance an extra $10k on truck, due to low auto rates, and pay off the personal loan; would the dealer allow this?
Also, are sales taxes paid on total purchase price or total minus trade in/down payment?
While I have never taken out a second on a vehicle I would assume a bank is where you need to be headed not a dealership. While it would certainly be possible the bank would most likely pay off the original debt then lend money with the vehicle as security in one loan containing the full amount (19,000).
You are not going to beat the 7% by much in this scenario IMHO, certainly not by enough to make this worth it after fees.
Trying to borrow oneself out of debt rarely works out in the end.
Posted on 7/7/16 at 10:58 am to LSU6262
Why wouldn't you trade in the truck for $26K, paying off the $7K remaining on truck & your wife's $10K loan, and then find a 0% or very low interest rate on a new, more modestly priced vehicle? Something you can finance for 36 mos or less, so you'll get some driving years w/o a car loan.
Put the difference between your current higher-dollar car note & your new lower-dollar note in the bank, along with whatever monthly amount your wife was paying on the $10K. In a couple of months, you'll have a cash reserve....plus you'll still be driving a new car that will be paid off relatively quickly.
As the prev poster said, borrowing your way out of debt is not generally a good idea.
Put the difference between your current higher-dollar car note & your new lower-dollar note in the bank, along with whatever monthly amount your wife was paying on the $10K. In a couple of months, you'll have a cash reserve....plus you'll still be driving a new car that will be paid off relatively quickly.
As the prev poster said, borrowing your way out of debt is not generally a good idea.
Posted on 7/7/16 at 11:21 am to hungryone
quote:
Why wouldn't you trade in the truck for $26K, paying off the $7K remaining on truck & your wife's $10K loan, and then find a 0% or very low interest rate on a new, more modestly priced vehicle? Something you can finance for 36 mos or less, so you'll get some driving years w/o a car loan.
This is exactly what I'm wanting to do. I think yall are misinterpreting my OP. I must not have been clear
Posted on 7/7/16 at 11:53 am to LSU6262
quote:
If i wanted to finance an extra $10k on truck, due to low auto rates, and pay off the personal loan; would the dealer allow this?
sure, but word it a little different, instead of financing an extra 10K, say that you are trading in a vehicle but not applying all the proceeds to the new vehicle
quote:
Also, are sales taxes paid on total purchase price or total minus trade in/down payment?
in Louisiana, sales tax is paid on purchase price minus trade in.. Down payment does not affect sales tax
Posted on 7/7/16 at 11:56 am to LSU6262
Not saying this is smart, didn't really read the details but if they do i,. (I know some or most credit unions will) be prepared to wait until they get the title (a couple weeks). I traded in an almost paid off car on a car i was leasing for my biz, had a bunch of equity and the dealer tried to make me wait until they got the title in before they would pay me $30k they owed me.
Posted on 7/7/16 at 2:00 pm to LSU6262
quote:
This is exactly what I'm wanting to do. I think yall are misinterpreting my OP. I must not have been clear
You mentioned financing an extra $10K, so it sounded as though you were borrowing additional funds over the cost of the new vehicle.
Consider looking seriously at fuel efficiency re: your new vehicle purchase. Then you can be saving additional $$ with reduced fuel costs.
Kudos to you for deciding not to be car-poor. Too many ppl drive WAY too much car, while economizing in other areas. They'd enjoy a better quality of life if they could be convinced that a fuel-efficient, modestly priced car will get them to the same places as a gas guzzling SUV/truck.
Posted on 7/7/16 at 3:57 pm to hungryone
Absolutely! Done it a few times in the business, you will get check within a week or deal, to person who 'owned' traded vehicle.
Posted on 7/9/16 at 12:57 pm to cave canem
quote:
Trying to borrow oneself out of debt rarely works out in the end.
Posted on 7/9/16 at 1:31 pm to LSU6262
quote:
I have a truck worth around $26000 trade in
Were you offered 26, or just looked up a value?
Posted on 7/9/16 at 2:53 pm to LSU6262
Probably smarter to sell the vehicle outright as a completely separate transaction and not as a trade in. Pay off the loan and use the remaining cash as a down payment.
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