Overhaulin'

I owe $15000 but car is worth $8150 trade in, can I sell with lien?

The trade in value is $8150 but private party value is $9550. I'd like to sell and find something more economical but I'm not sure I can do it if I still owe money on the loan. How does that work?

Public Comments

1. You have to pay off the loan before you can transfer ownership of the car. The bank (or whoever loaned you the money) requires you to own the car so they can take it from you if you don't pay back your loan.
2. When you go to buy the new car they will give you a certain ammount for your trade (say your $8150, but in reality it will be like $8000 that they offer you) They contact the bank that has your loan for the car you now have to find out the actual payoff (you say about $15000) The dealer finances you for the price of your new car plus the difference between the payoff and what they give you in trade ($6850 if they give you $8150 for your car). So if your new car price is say $10000 you will be financing $16850 (the price of the new car plus the difference). You are what they will call upside down in the loan and it leads to you paying a large payment for your next "more economical" car (the payment on $10000 would be between $200 and $250, but the payment on the ammount you have to finance will be over $300 a month). Your best bet would be to just ride it out with the car you now own and pay it off then actually put money down when you buy your next car, that way you wont be upside down.
3. You will be upside down and it will become a cycle w/ each vehicle you purchase. You can sell it but you will still have to come up w/ the difference to pay off the loan. Or, you could trade it in but you would be upside down that way also b/c the difference would be added to your new loan.
4. Ok, pj10 was close. Now your payoff is 15 and you think its trade in value is 8150 thats a $7150 upside down ( car talk) negative equity. If you really want to get out of your car. Either you buy a new one with a large rebate. Lets say $5000 rebate your still $2150 hooked. Now at $7150 a new car cant caring that much neg. equity, but $2150 it can. bootom line is the Math does not lie.They can move , over allow, etc.. the numbers, but you still have $2150. to add to the price of the new car. Try a lease short term(24-36 mo.) it can caring that much and when the lease is up walk away. You'll be fine . P.S were are you getting the trade in value? I hope not Edmunds or Kelly or even N.A.D.A Dealers use Black Book One more thing , if you own a( Example) Chevy , go to a Chevy lot . The maker will put more into your trade. versus a Toyota or Dodge .
5. YOU WILL HAVE TO PAY OFF THE COMPLET LOAN BEFORE YOU CAN DO ANYTHING.
6. if you trade it in the dealer will roll whatever they dont give you in on trade over to the new loan and since your about 7k in neg equity its hard to find a vehicle that banks will loan on due to the LTV (loan to value) your best bet is to get into a lease if you can and at the end of the lease all the negative is gone. But since the dealer probably wont give you 8150 for trade your payment will be high since more negative is being rolled into something else. And if you sell it to a private party you will either have to get the amount you owe for it or come up with the rest yourself, the person who buys it cannot put it into their name and get plates etc, if there is a lien on the title. If your payments arent too high you may be able to sell it to someone and have them make the payments, call your loan company and ask, sometimes they charge an application fee to the new owner and as long as he/she meets their criteria for an auto loan they can assume your payments. They will probably charge a paperwork fee for all of this and it takes a couple weeks for everything to be finalized. I've seen fee's upwards of $595.00 and you can choose to pay half or all of it or work something out with the potential buyer.
7. Allot of good answers here. I agree leasing is a good way to get out of negative equity. but then at the end you owe nothing and you have nothing. A fresh start. Only you credit will determine if you qualify for this option. plus they don't like to roll in too much negative equity into leases. If you really have to have a new car you have to get the most for yours, while paying the least for theirs. I am an Auto Negotiator, recently I saved a guy about seven thousand dollars, factoring in what they wanted to give him for his trade and the price of his new van. If you would like I could put my skills to work for you, and it will not cost you anything. You have nothing to loose and savings to gain.