If I sell my car for $5000, I could pay off a credit card that has 21% interest rate. Then I would get a loan for $5000 to buy back the car. The loan would have a finance charge of 9% or so.
Can I do this?
2006-09-05 11:37:04 · 8 answers · asked by anonymoususer987876 3 in Business & Finance ➔ Other - Business & Finance
I have someone already who is willing to do this. He will be handing me the $5000 that the loan company pays him after the deal is made, so there will be no actual transfer of car just transfer of title.
2006-09-05 11:51:34 · update #1
of course. there really is no legal issues. however, you will face the following issues:
1. will you really have a buyer for $5,000?
2. will that person really sell it back to you for $5,000?
3. is your car worth $5,000 (in the bank's eyes)?
not bad for creative refinancing.
2006-09-05 11:45:40 · answer #1 · answered by loveholio 5 · 1⤊ 0⤋
1
2016-09-26 11:39:18 · answer #2 · answered by ? 3 · 0⤊ 0⤋
It's legal, but good luck finding an auto dealer who will buy your car for $5000 and then sell it back to you for the same price. Also, you'll have an up-front loan fee. So you're going to be paying more for your car.
2006-09-05 11:47:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes. If the car is worth it, and your income justifies the debt. Go see your bank first, and ask if you would qualify for a $5000 loan, and what parameters they would have...ie loan to value...
2006-09-05 11:48:22 · answer #4 · answered by scott n 2 · 0⤊ 0⤋
who not make it easier on yourself and if you have made payments faithfully contact the company you currently have the loan with about refinancing, or requesting a lower interest rate.
2006-09-05 11:43:55 · answer #5 · answered by allrightythen 7 · 0⤊ 0⤋
Banks do this all day long, Dealers do this all day long,
the mafia made this famous by laundering money
its absoulutly legal
2006-09-05 11:48:02 · answer #6 · answered by nunofyobiznit 3 · 0⤊ 0⤋
sure you can, but why did you get $5k in debt. Do you own a home? If yes get it that way. Or buy a cheaper car. BUT WHAT EVER YOU DO GET YOUR MONEY RIGHT
2006-09-05 11:46:52 · answer #7 · answered by Anonymous · 0⤊ 0⤋
to me i would think it was fraud but i don't think its fully illegal check with your local law enforcment to find out for sure.
2006-09-05 11:45:51 · answer #8 · answered by cory 2 · 0⤊ 0⤋