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My 350z has approximately $12k in loans left. I have had several oppy's to trade but I was unsure if when the owner titles change, do I still assume the monthly payments? Or does the new owner? And, what occurs if I trade-in with a dealership?
since you have a loan on the car, your loaner owns your car, technically. how are you going to give a new owner the title if you don't own the car?
they aren't giving you the title unless you pay off your current loan. simple as that.
a dealership will give you a trade in offer that may or may not be more then what you owe for your car. if it's less, you'd have to roll over the balance onto the new car loan etc..
since you have a loan on the car, your loaner owns your car, technically. how are you going to give a new owner the title if you don't own the car?
they aren't giving you the title unless you pay off your current loan. simple as that.
a dealership will give you a trade in offer that may or may not be more then what you owe for your car. if it's less, you'd have to roll over the balance onto the new car loan etc..
aka: upsidedown on your loan / into the red
It is a bad financial decision to sell you car for less then the value of the loan, unless you can pay off the difference from out of pocket. You always want to be on the positive side of your loan when selling a car. Meaning the value of the car is worth more than the loan.
apply this reasoning to other financial decisions as well
In your situation if you can sell the car for more than the 12k loan, do it. But if its a private sale you will have to inform the buyer that the title is not in your possession ( there is paperwork to do to transfer it to the new owner ). If you go the dealership route it will just be a simple trade. Since most Z are worth more than 12k it shouldnt be a problem
Last edited by omegamanex; 09-03-2009 at 12:12 AM.
My 350z has approximately $12k in loans left. I have had several oppy's to trade but I was unsure if when the owner titles change, do I still assume the monthly payments? Or does the new owner? And, what occurs if I trade-in with a dealership?
Any info is much appreciated.
The answers depend on how much you are able to sell the car for or how much the dealership will give you for your car.
As stated the loan will have to be paid off before the bank will release the title. Therefore, there will no longer be a loan to pay on by you or the new owner.
What year Z do you have, and how much have you been offered by a dealer?
Private Party sale you need to contact you lending financial institution 1st. They want their payoff amount of the loan so that they can clear the title to the new owner.
For instance, if your loan was through Wells Fargo you and potential buyer can go and do the transaction right there. Meaning, you have the payout balance ready to hand to the bank. You have the cashiers check from the new owner, title ready to be signed over.
I say call 1st because they may new a few days to arrange this before you go into the branch.
Dealer Trade-in they handle all the paperwork for you and pay off your previous loan. If you owe on your loan they are going to ask more of a down payment or roll that amount into the new loan.
You will get "Auction" price on your trade-in which is 1-4K below NADA and Kelley Blue Book.
Car Trade question
