Hi everyone. I am financing a car that I got the end of June and havent made the first payment yet(its due in a couple of days). I was intrested in trading it in already but wasen't sure how soon a person can trade in a car or if you have to make some payments before hand etc....I financed my car for $14,500 but a couple of the cars that I am intrested in are around $13,000. Can I even consider a car around this price or will it "default" my loan? I want't to be able to go in knowing a little about this so the dealers don't think that I am absoultly cluess.
2006-08-15 15:26:38 · 15 answers · asked by jennifer7472@sbcglobal.net 1 in Cars & Transportation ➔ Buying & Selling
All of these people are technically right, but there's a bigger picture to consider. It seems to me like you're having buyers remorse which is when you buy something that even you know you can't afford, and so now the little $13,000 model looks appealing. Again since you don't "Own" the car you can pretty much do anything with it, for a price. It is unlikely that the loan people are going to be OK with you changing your mind! Also, it may be harder going forward to get credit, because you would have traded before your first payment.. In my business we call that a lapse. It's not as bad as "we tried to get her to pay but she wouldn't", it's saying your first payment came due and rather than paying you went and got another car, thereby "Lapsing" in your first car loan.
I would advise you to pay for your current loan for 10 months, then see what you can do for your new car. The reality is 10 days or 10 months off the lot are not that different when it comes to car value. but it will look better on your all around history
2006-08-15 16:55:48 · answer #1 · answered by Sidoney 5 · 3⤊ 0⤋
1
2016-12-23 22:29:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Trading In A New Car
2016-11-08 08:56:41 · answer #3 · answered by jesni 4 · 0⤊ 0⤋
well first off you do not own the car you are driving. Whoever is financing your $14.5 owns it because they have a lien on it. You are paying off the lien with your monthly payments.
Now the question becomes who is financing your loan? Auto company through their financial arm? Bank? Credit union? ETCETC?
Contact them see what they can/will do for you.
Is the car you desire to purchase from the same manufacture? If so, you might be able to quickly work something out with the finance arm.
BE AWARE that your car is NOT worth now what you paid for it---it is a used car. It has depreciated.
Be prepared to swallow the probable difference. You can trade a car basically at any time, easiest if you own the car outright: like now the financing must be cleared first or you will have severe legal problems. Talk and listen to the dealers you want to deal with, after first talking and listening to your leinholder. They will give you a payoff figure on your present car.[DO NOT be surprised if it is more than you think] Good luck.
2006-08-15 15:58:23 · answer #4 · answered by tjdepere2003 6 · 0⤊ 0⤋
We trade in a car as soon as we used them after a year breaking
2006-08-15 15:39:15 · answer #5 · answered by desiree gersaniba 3 · 0⤊ 0⤋
You can trade it in as soon as you like but you will take a tremendous loss in value and may still end up owing on the loan and not have the car. Check out www.kbb.com for trade in values on your type of car.
2006-08-15 15:32:49 · answer #6 · answered by therego2 5 · 1⤊ 0⤋
Immediately, if you want to. But keep in mind depreciation. You drive the car off the lot, and it loses 20% of its value immediately. That's not counting tax, title and license fees. And it continues to lose 15 to 20% a year, until it's worth zero. So the only way to not lose money is to continue to drive the vehicle beyond the 5 year mark.
You buy a car for !4,500 (your figure) and before you make the first payment you trade it in. You owe $14,500 and it's worth $11,600. You are already upside down for $2,900, plus you get to pay tax, title and license again.
2006-08-15 15:37:48 · answer #7 · answered by oklatom 7 · 0⤊ 0⤋
It really does not matter because you financed the car so you really do not yet own the car. The money backers do not really care what you do as long as they are satisfied. If you find someone to take over the loan no problem. Or you can cut a deal to trade the car but you may have to kick in a few bucks.
2006-08-15 15:39:56 · answer #8 · answered by I R G _ H I Q 4 · 0⤊ 0⤋
Normally one month or thirty days you can back out of financing. To late you own it and you will only be offered 8,000 to trade to the less expensive car. No equity. And did you ever hear you loose five thousand dollars by just driving the car off of the dealers lot? Salesman pay dealer mark-up all lost. Good luck, I would learn to like that car you purchased. And learn from it.
2006-08-15 15:37:22 · answer #9 · answered by John Paul 7 · 1⤊ 0⤋
You can trade in the car before you even leave the lot - you will have one problem with your new car (unless you had a trade-in) you have not equity involved in the vehicle you wish to trade - doesn't hurt to check it out though!@
2006-08-15 15:36:52 · answer #10 · answered by nswblue 6 · 0⤊ 0⤋