Trade question
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Staging Lane
Joined: Feb 2006
Posts: 79
Likes: 0
From: Missouri
Trade question just out of curiosity....if i were to trade somebody cars straight up.....what would come of the loans..... ive never traded a car before but i am looking to....lets say i owe 12000 and the other guy owes 20000 on his car.....when we trade would he transfer his loan to me or would i just be stuck with paying my original loan....i didnt know if when you traded the other person was responsible for the car recieved loan rather than the one they took out in the first place....make any sense? basically....
when i trade a car.... do i ....
pay off MY loan?
Take over other guys loan?
when i trade a car.... do i ....
pay off MY loan?
Take over other guys loan?
Staging Lane
Joined: Aug 2006
Posts: 52
Likes: 0
normally, when you trade cars, both cars are paid off .... makes life much easier.
if you were to trade cars. essentially, you would have to get a loan for $20K for his car and then "purchase it" and he would have to take out a loan for $12K and "purchase" yours .... Then he would owe $12K and you would owe $20K
Hope that clears some stuff up for you
if you were to trade cars. essentially, you would have to get a loan for $20K for his car and then "purchase it" and he would have to take out a loan for $12K and "purchase" yours .... Then he would owe $12K and you would owe $20K
Hope that clears some stuff up for you
On The Tree
Joined: Jul 2004
Posts: 105
Likes: 0
From: Midland, TX
Originally Posted by CaSHMeRe
normally, when you trade cars, both cars are paid off .... makes life much easier.
if you were to trade cars. essentially, you would have to get a loan for $20K for his car and then "purchase it" and he would have to take out a loan for $12K and "purchase" yours .... Then he would owe $12K and you would owe $20K
Hope that clears some stuff up for you
if you were to trade cars. essentially, you would have to get a loan for $20K for his car and then "purchase it" and he would have to take out a loan for $12K and "purchase" yours .... Then he would owe $12K and you would owe $20K
Hope that clears some stuff up for you
That is kind of how it works.......but you would really want his and your creditor to show it as a trade because, you will only have to pay taxes on the amount above the $12k you owe because you are trading up. So, basically what I am saying is that you have already paid taxes on the $12k when you bought your car, so when you trade it for another worth $20k, then you will only have to pay taxes on the difference of $8k. Therefor he will not have to pay any taxes since he is trading down in value.
I can explain more if need be, I have been around this kind of stuff since my mother has been in Banking for almost 30 yrs.
