The car I own now is being financed by my mother. I want to trade it in and get a new car. My question is, can I trade in this car and have them pay it off even though the new car I am purchasing will no longer be in her name? I want to put it in my name now.
2006-07-06 08:38:56 · 11 answers · asked by *♥*fabulous fab*♥* 3 in Business & Finance ➔ Credit
Yes I have good credit now.. I didnt 3 years ago when she took the car out for me.
2006-07-06 08:45:04 · update #1
She is available to sign paperwork too.. but I dont want her on the loan anymore!
2006-07-06 08:46:02 · update #2
THE CAR IS STILL BEING FINANCED. THE LOAN IS IN HER NAME.. title is in the lien holderss name.. in this case.. the bank we still owe the money to
2006-07-06 10:11:42 · update #3
I'm pretty sure that the bank (or dealership) will have to get your mother's signature at least once. We (the bank I work for) would have your mother sign a payoff amount request form that we would send to the original lender in order to obtain a current payoff amount. This just shows the original lender that we have your permission to obtain that account information.
2006-07-06 08:44:17 · answer #1 · answered by inaccord18 3 · 3⤊ 0⤋
Here is what you will need:
1. Don't tell the sales rep you are looking to trade. Negotiate the best price you can and let them think you are going to pay cash for it. This is especially true for used cars. After agreeing to a cash price, THEN you can talk about financing and trade-in.
2. You will need good credit to qualify for the new car loan. Try to get qualified at a bank or credit union first. Although they may not offer as low of a rate as the manufacturer's finance company, you will often still save because you will have to borrow less. Many car company's offer incentives such as "Zero Percent OR $1500 off".
3. The dealer will need a power-of-attorney letter signed by your mom. This will tell the current finance company to send the title for the old car directly to them. They will give you the form when you close the sale.
2006-07-06 08:54:03 · answer #2 · answered by Michael W 3 · 0⤊ 0⤋
If the car is not under your name, your mother will have to be there for paperwork and such. I just bought a used truck and
I was in a similar situation with my dad. My credit wasn't good enough to get a decent interest rate, and I've regreted high interest rates in the past.
If your mother has good credit, and you don't mind being under her wing a little longer, I would try a joint ownership loan with you as the primary owner. Not only will that put you mostly in charge, but you will build your credit as well, provided you make all of the payments. Also, loans at credit unions are often lower than the ones at the dealer, so shop around--You'll be happier in the long run.
Good luck!
2006-07-06 08:47:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes that is definitely possible, as long as your credit is good enough to get qualified on your own. Basically the dealership will buy your car on the side of the paperwork for the car you will buy. If they offer you more then what you owe to the bank they can apply that difference as down payment on your new car. Whatever price you agree to sell your mom's car they(the dealership) will send the payoff check to the bank to close your mom's account on that car. The problem would be if your car is not worth what you owe to the bank, then you will be still liable to pay the difference. But either way its possible.
2006-07-06 11:19:31 · answer #4 · answered by fasb123r 4 · 0⤊ 0⤋
Is the vehicle titled to you with your mother as the lien holder? If so, she'll need to give you a notarized statement that the lien is released, and you'll need to apply for a clear title. This can be rolled all into a single transaction by the dealer. Any outstanding balance can probably be rolled into the new loan if you have a written loan agreement with your mother.
If the vehicle is titled to your mother, she's going to need to title it to you first (and probably take it on faith that you'll pay her the balance still owing) before you will be able to trade it in. You'll probably have to work out how to handle the outstanding balance with your mother in this case -- or if you don't have a written loan agreement -- as you won't be able to roll it into the new loan.
2006-07-06 09:06:21 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You might be able to have her as a co-signer, but I am not sure how that works since the car is being financed in her name. You may have to purchase the new car under her name and then have it transferred after the fact, BUT you could end up with a much larger APR. Do you have any credit?
2006-07-06 08:41:39 · answer #6 · answered by Girl 5 · 0⤊ 0⤋
Purchase means you buy the car outright. If the car is $15,000 after tax, tags and fees, and you give the seller $15,000 you have a clean title. The car is your property. When you finance a car, the finance company gives you a loan. The vehicle is the collateral. Their is a lien placed on the title by the finance company. Once you pay the loan off, you get a clear title. In the mean time, the car is legally the property of the finance company. That's how come they can re posses a car for non-payment of the loan.
2016-03-27 06:45:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, you'll need your mother present to sign the necessary papers for the car you are trading in. Just because she's on the title to that one doesn't mean she'll need to be on the next one though, as long as your credit is good enough.
2006-07-06 09:09:18 · answer #8 · answered by purpleama456 4 · 0⤊ 0⤋
Yes, you should be able to do that. Your mother will have to sign off on the car, of course. The dealer should not have a problem with that, as long as you have good credit.
2006-07-06 08:41:43 · answer #9 · answered by Okkieneko 4 · 0⤊ 0⤋
All you mother have to do is sign over your old car to the dealer and you can use that cars payoff to purchase a new one. You don't have to have her on the new car loan.
2006-07-06 08:54:24 · answer #10 · answered by RG 2 · 0⤊ 0⤋