Vehicle buying question

[grinningghost]

Has anyone ever bought a new vehicle and had the dealer cut you a check to pay off another vehicle at the same time? A friend of ours says they'll do that. We'd like to replace our truck, but we still owe a little on my car. Before I go and ask about that at a dealer, I'd like to know if there's any truth to this check cutting thing. It sounds too good to be true to me, and this guy doesn't always know what he's talking about.

 

[Toby'sFriend]

It sounds too good to be true to me, and this guy doesn't always know what he's talking about.

Yes they will do that. But what you are proposing is in effect extending the term of your current loan for an additional 5 years (or whatever term you are looking at for the new car). In the end, it will cost you much more in interest and most likely that old car isn't even going to last an additional 5 years. In effect, you will at the end of 5 years, still be paying for a car that you don't even drive any longer.

It really isn't too good to be true at all.

 

[Dizz-knee-whirl]

the answer to your question is yes and no. The check will not go to you. But the remaining balance on your trade in will be paid off. lets assume that you owe more on your car than its really worth....when yout rade in your car the balance of the ammount owed minus the value will essentially be added to the price of the new car. there fore extending the remaining balance throught the term of the new loan and getting charged interest on it, probably not the best situation, but often times people have no other choice,( family expands, must get a larger vehicle etc.)

you say you owe little on your trade in so there is a possibilty that you owe less on your trade than its worth..you are in an equity position. then you will recieve the balance of the value minus the loan balance for use as downpayment or anything else you see fit.


I sold cars, both new and used, for a long time. I know it can get confusing and stressful. I left the business to go back to college though. I would like to help you in any way. PM me or e-mail. good luck. i can rammble abou the car buying experience forever.

 

[Mskanga]

I don't know if I'm not understanding correctly but you said you want to trade in the truck but you still owe some money on your car. If the truck is paid off and you want to trade it in, whatever amount they pay you for the trade in will be deducted of the purchase price of the new vehicle. If you want to trade in your car and you still owe money, they will add what you owe to the loan and then pay the lender off , but you will pay interest on that money for 5 years.
I have never seen anyone being 'cut a check' other than to pay off the lenders , but I don't know if that's one practice I'm not aware of.