Trading with a lien and a prospect buyer to new 2012 HL

[Symple]

Hi,

I have already a deal to the dealer and trading in my old car with a lien of $15,000. They appraised my trade in around $6,000. They told me i can still sell my old car that is why im wondering what others have to say about this. Im selling my old car around $12,000 and my buyer agree to it.

Im not sure if the difference of the lien will carry over to my new HL and the old car will be lien free.

Any feedback is much appreciated.

Thanks.

[TheBum]

I can only speak on US law. Canadian law may be different, so all or part of this may not apply to you.

If you sell, you'd probably have to get the lien off the title before signing over the title to your buyer; I doubt your buyer will want to assume the remaining $3000 of the loan after spending $12000. That means coming up with $15000 out of your own pocket, or from some other type of loan, before you get paid the $12000 from the buyer.

If you trade it in, you may be able to roll the balance of the old car's loan to the new car and get the lien lifted off the old car. Doing so will probably raise the interest rate because there will be no collateral for that $9000 balance.

[grandpapa]

Don't think your old lien will have anything to do with your new purchase.
Sounds like a 2 deals so not sure why this is an issue.

You sell your car for $12000. You still have to pay the bank $15000. So $3000 different. Now let say your new car is $40000, I don't think you can ask them to add that $3000 into the loan since it is not related.

[TheBum]

Originally Posted by grandpapa

You sell your car for $12000. You still have to pay the bank $15000. So $3000 different. Now let say your new car is $40000, I don't think you can ask them to add that $3000 into the loan since it is not related.

It was just an idea I threw out there. It would only work if the financing for both vehicles was through the same finance company. It would be worth bringing up with the dealer; the worst they could do is say no, which is the answer I'd expect.

Oh, and it would be $9000 rolled into the car loan, since the dealership was only offering $6000 in trade. $9000 in unsecured credit would not be cheap.

Your best bet is selling it, even if you have to temporarily reduce your life savings by an extra $12000 between the time you pay off the loan and sell the vehicle.

[Symple]

Im kind of worried because my old car ext warranty will be voided if not sold privately. I have talked to the manufacturer of my old car and have to pay $100 for the transfer. The lien will be paid by the dealer and they will carry over the difference to my new HL. Im was glad to know about it and hopefully my buyer is still interested.

Thanks guyz.