auto financing help

Hello, another question for u guys that i need help with. Couldn't find what to do in this situation. Say u want to trade ur car (still financing/dealership), for another car (paid off/private party) and both had exactly the same price, how would you go about doing it? Thanks again in advance for helping out, its much appreciated.

Well I believe you would still wind up paying sales tax on the private car when you go get the plates/tf it over to you, wouldn't you?
Also, are you saying that what you OWE is exactly the same price as what someone is selling their car 'private sale'?

yes to both. I guess I shoudn't do it. Just not a very smart thing to do. Thanks though

Call your bank/financing institution and tell them the situation and see what the will do.

You'll need to pay your car off, or acquire financing on the new one. The tradee is gonna want a clear title.

So you want to trade you car you still owe on for anther guys car that is paid off? The value of the two cars are the same? Some dealers will handle all the paperwork and financing for you but will likely charge you for the assistance. Whether a dealer fee or a higher interest rate. Not unheard of though.


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If it's something you really want to do and you think it's the SMART decision by all means, at least look into it. Like someone else said, call up your financial institution and they should be able to give you some advice on this. I can't imagine it being that bad as far as the taxes and what not, I just think the one thing you want to make sure you do is that the car you are purchasing is not going to be sold out from under you if you do trade in your vehicle.

What car are you thinking of going with?

A Sti hatchback, a generation before this. And I know the guy selling it. I'll probably pursue it, since that was one of the cars I was looking to get into before this. I love my GTI, but I couldn't get mine with 5 doors. The price for the MkVI R was still out of my price range when I was shopping. Oh, and did I say my car had to be a hatchback? Not too many choices for a hatch.

I understand what you are trying to do but it seems you need to be forewarned about a few thing. Here are my reasons; Vehicle A will be your car and Vehicle B will be the one you wish to purchase.

For the sake of numbers, lets say Vehicle A and B both have a price of $20,000. Vehicle A has a lien and Vehicle B is owned outright.

Issues for Vehicle A:

1. Vehicle A is being sold for $20,000, but how much is it WORTH? $18,000? $15,000? Vehicle A needs to be appraised. In today's used car market it's all about value. I would recommend going to a VW Dealership, CarMax(if one is local to you), and another random Dealer to get some written quotes. Ask each Used Car Manager or Appraiser what they rate the vehicle's condition as. They will use the words Excellent, Very Good, Good, or Fair.

2. How much is OWED on Vehicle A? Vehicle A might be going for $20,000, but that's because that's the remainder of the loan, but if it's worth only say, $16,850 a prospective buyer isn't going to pay much more than that. Do you have the money to cover the gap?


Issues for Vehicle B:

1. Again, how much is it WORTH? Don't make a poor investment by overpaying.

2. Tax, Tag, and Title. Since you're purchasing from a private party you will have to handle this all on your own. Some states let you list the bill of sale for $1, but if you have pay Personal Property Taxes most likely they will come and appraise the vehicle for tax purposes. Make sure you have the money to cover these expenses.

3. Financing. Unless you have the money in cash you will need to get approved for the purchase of the vehicle. Again don't make a poor investment if the rate and or payments are too high.

Thank you, J R Dub. I needed that.