USed vehicle trade in question

[CharityLynn]

Ok so we bought this minivan in 2007 (Kia Sedona) we are $800 away from paying it off and have been having tons of issues with it. We are scheduled to drive to Disney World with it in October but obviously are a bit nervous about it (its currently in running order) we have considered trading it in for a newer van. Can you do this when you still owe ($800) on it? Would you have to purchase the newer (still buying used) from the same place you have the other car loan?

Also so you know of a website to look at cars in the areas?

 

[BellePrincessBelle]

You can trade it in owing money on it but what you'll get depends on year, mileage, condition , etc. You may have to roll that $800 into the next loan if it's not worth the $800. No you do not have to purchase from the same place. Try autotrader to look for a new car.

 

[Jennasis]

a 3 year old van having that many issues? Is it still under warranty?

 

[CharityLynn]

The van is a 2003 we bought it used in 2007..I'll try autotrader

 

[Jennasis]

The van is a 2003 we bought it used in 2007..I'll try autotrader

Ah! I would pay it off and then trade it in for something else. Unless the issues are fixable, in which case I'd get it fixed and have a payment free vehicle.

 

[rwdavis2]

edmunds.com can help you with a trade-in price. It may be worth more if you donate it and take the take deduction on what the charity eventually sells it for (they notify you).

 

[bettymae1121]

That's tough, it be a shame to get rid of a paid-off vehical but at the same time, if it's a lemon you may as well have a car payment if it's going to nickle and dime you to death. Personally I'd lean towards keeping it and once paid off, putting what I used to spend on the car payment towards a "car savings fund". If the van breaks you pay for repairs out of it, if it doesn't break then you'll have a nice down payment saved when it does eventually need to be replaced.

But that's me, this is one of those situations where there aren't any really good answers, at the end of the day you'll just have to do what you think is right for your family.

Oh, and to answer your question, yes you can trade in when you still owe, they can roll what you owe into the new loan, or deduct what you owe from the trade in value (which basicly amounts to the same thing). You could also scrape up $800 now and pay it off early, then trade it in free-and-clear.

 

[tvguy]

Well, barring rust or a crash, it's always cheaper to fix a car than replace it.
I bet the sales tax on a new one is more than it would cost to fix the old one.
And KIA warranties are for 10 years, so it should still be under warranty.

 

[golfgal]

Have you considered renting a van for your trip? It might be an option and allow you to keep your current van for a while.

 

[BellePrincessBelle]

Well, barring rust or a crash, it's always cheaper to fix a car than replace it.
I bet the sales tax on a new one is more than it would cost to fix the old one.
And KIA warranties are for 10 years, so it should still be under warranty.

Actually only new Kia's are warrantied for 10 years. A 2003 would have had a 3/36. Plus on new Kias the 10/100k is non transferrable to a second owner.