Overhaulin'

I have a $14,000 balance on my car; wanting to sell for $10,000 then refinance balance+cheap used car. Tips?

I'm just not sure how to handle the title to the car if someone buys my car. Can I get the title to the buyer maybe a week after they buy the car? That would allow me time to pay the $10,000 toward my original car loan then get a refinance loan for the rest plus just a little more to get a cheap used car. How should I go about doing all of this?

Public Comments

1. you will only be able to refinance the balance if you take out an unsecured signature loan. Otherwise, you will not be able to do this, because the bank will not be able to sign off on the title until it is completely paid for. If you buy a cheaper car, it would have to "book out" at $4,000 more that what you are paying for it in order to roll that extra onto this new loan. Good luck.
2. Sounds like you might have to look for your new car at a dealer. Their financing dept. will be able to roll over the remaining balance into a new loan/car.
3. Not sure what kind of "refinance" loan you are talking about. After you sell the car, there is no collateral for another loan, unless you can get a personal loan from a bank, or have a home that you can borrow against. Otherwise, you might be overestimating your ability to come up with a $4K unsecured loan. Only a very trusting buyer would allow you a week to come up with the title to the car. Most such transactions take place at the bank who holds your loan. The buyer would be there and write his $10K check. You would be there with $4K to give to the bank. The bank would then give the title directly to the buyer. As another answerer suggested, you could trade your car at a dealer, who would roll your negative equity into a new loan. But your new "cheap" car wouldn't be so cheap anymore since you would essentially be paying off two loans at once. Besides the dealer will only give you wholesale price for your car, not the $10K you might expect. If possible, it would be better to simply keep your current car and keep paying until you are no longer upside down. Then you'll be able to anything you want with your car. Good luck
4. sounds like a plan but what makes you think you can sell your car for $10,000? your heading for a dealership and will come out upside down. this is always a bad idea unless your new loan has a significantly lower APR