Fsunoles06

Assuming I would get around what kbb.com is valuing my car for (as a trade-in), I'm not sure what the process of a trade in is. I would like to trade in my car from the same dealer I bought it from. I dont know if there are any advantages to this or not. But i may just go with the dealership that values my trade in the highest. Kbb.com says, i would get about 20,800 for my 8. I owe about 22.5k on the car still. I know, alot. My understanding is that the dealership pays off the remaining 22.5k on the car and I begin making new payments on the car I traded in for. Is this how it would work?


If I were to sell my car myself, would I simply transfer the title and the current payments to the buyer? I would want to sell for more (like 23k) than what I owe on the car (about 22k) to make a small profit. But if I am transfering the title and payments to the new owner, how would I recieve any profit. Would they have to pay the 23k in full for me to recieve that 1k profit?

Scrapula

You're most likely not going to get KBB value for your trade. There are a glut of RX-8's out there. You are upside down in your car. If you trade it in, the amount of money you still owe will get added to the loan of your new car. This will make you even further upside down, which is not a good thing.

If you sell the car yourself, the buyer must obtain his own financing. You can't transfer your existing loan. You can get the title work done at the tag office. You should try to sell your car and at least get what you owe on it. The new finance company will pay off your loan and return any overage to you. If you don't sell it for your payoff balance, you will have to come up with that money on your own, otherwise the new buyer cannot purchase the vehicle.

You are going to take a financial hit. Why are you trading? I would recommend that you keep driving your car until it is worth more than what you owe on it.

Fsunoles06

So assuming I owe about 22.5k and the "new" car is selling for 22k, I would end up oweing 44.5k? Doesnt seems like much of a trade in.

From what I understood, if I owe 22.5k on the car and I get about 21k as the tradein value, I would owe 1.5k.

That 1.5k would be added on to the new car (22k). Totaling about 23.5K.

Am I just crazy? cuz this is how it was explained to me before.

Scrapula

That is correct. You add the difference between what you owe and what you got for your trade to the new loan. It is not a good thing to do. You may have to purchase gap insurance to cover the difference in case of an accident.