Loan questions

[Tractor]

Last summer I bought a car and since then a lot of things have changed and one of them is that I work for myself and a large cargo van would be a much better vehicle at this point for hauling things like ladders and the various IT gear I tote around.

 

Since I've only had the car 6-7 months I owe a lot of the value still, what type of options do I have? I know I could sell the car straight and get a van, but hoping there's some type of trade I could do to avoid some of the time delay, etc.

[Not Brian]

Trade through a dealership and roll that negative equity into the new loan. If you bought the car new, soap up for that bath. If not, it won't be as bad, but it'll still sting a bit.

[Cordell]

You simply need to determine how upside down you are. If it's not horrible maybe you could sell it yourself and save some of the hit you'd get trading it in. I've been in this situation a couple times myself. One time I rolled the negatives equity into the next vehicle, that sucked. The other time I sold the car and coughed up the $1k extra to cover my payoff, much better financially.

[STEVE-O]

Yep either call and pay up the difference in value or roll the negative by trading it in on something else

[Otis Nice]

Step 1) Talk to Mitch, CR's resident short auto owning expert.

Step B) Talk to Jordan.

[Tractor]

Its a used Caddy CTS that is in near perfect condition and I got an amazing deal on it and been paying the loan down since last August so I actually could sell it for about 1-2K more than I paid. Dealer would probably give me 1-3K below what I still owe which isn't bad I guess. I'd rather not deal with selling it myself due to time restrictions and the general BS that goes along with it.

[jerrodh]

Its a used Caddy CTS that is in near perfect condition and I got an amazing deal on it and been paying the loan down since last August so I actually could sell it for about 1-2K more than I paid. Dealer would probably give me 1-3K below what I still owe which isn't bad I guess. I'd rather not deal with selling it myself due to time restrictions and the general BS that goes along with it.

 

Hit up a few dealers and walk in telling them that you do not want any negative equality on your trade. If it's "really" within $1,000 of your payoff they can bump the trade value if you get infront of the right dealer/salesman. Once there explain your situation and get the van you need. It might take 2-3-4 dealers but someone will give if your payoff is that close the cars value it won't be that big of deal.

[Tractor]

Thanks guys. I'll see what I can do.

[street pilot]

Before you talk to the dealer with the van take it to Carmax. I've heard their buying process is straightforward and the prices they offer are reasonable. At least you'll then know how bad the other dealer is trying to screw you.

[Cordell]

Hit up a few dealers and walk in telling them that you do not want any negative equality on your trade. If it's "really" within $1,000 of your payoff they can bump the trade value if you get infront of the right dealer/salesman. Once there explain your situation and get the van you need. It might take 2-3-4 dealers but someone will give if your payoff is that close the cars value it won't be that big of deal.

 

The reality of this scenario working is that you have to find a dealer with a big profit margin on whatever you're buying. Not necessarily easy to find, and in most cases means they spent little to no money prepping it for sale. I've worked at places like this, and it usually means you have pissed off customers when the check engine light comes back on, or the brakes are worn out at their first oil change. Of course this is the time of year for that crap, shady sales managers are saving all the money they can to make those "tax refund dreams" come true.

[RS69]

Take it to Carmax, I know some folks that walked out ahead due to low miles.

[jerrodh]

The reality of this scenario working is that you have to find a dealer with a big profit margin on whatever you're buying. Not necessarily easy to find, and in most cases means they spent little to no money prepping it for sale. I've worked at places like this, and it usually means you have pissed off customers when the check engine light comes back on, or the brakes are worn out at their first oil change. Of course this is the time of year for that crap, shady sales managers are saving all the money they can to make those "tax refund dreams" come true.

 

Just going off what the original poster has claimed. If the dealer really is offering 1-3K less than what is owed if they need or want the vehicle they are trading in its a no brainer.

 

I too work at a dealer we are down to less than 50 used cars and literally today saw my sales manager pay $1500 over clean retail to get a deal done on someones trade. It's not unheard of for dealer to pony up for a desirable trade. Keyword desirable, not sure what you are trading in.

 

But shopping multiple dealers be will help your cause if you don't mind putting in the time and effort. I hate it as a salesman but as a consumer its in your best interest to shop as much as you can.

 

Walk right in know your payoff, get a value for your car at carmax, private value, etc. And talk your trade up until you get what you want.

 

In your situation your as much if not more of a salesman than the actual dealer salesman. You need to be prepared and ready to "sell" your trade so you can work out some of that negative equality.