Chupa

Due to the massive end-of-year price cuts, I'm seriously thinking of trading my TA in for a GTO. I'd hope to get 11-12.5k out of the trade in value. However, I still owe 10k on the car. Would the dealer talk with the bank (fortunately it's GMAC), or would I have to do the legwork to get it paid? How does that situation work out? For some reason I'm having a really hard time wrapping my mind around it.

cyphur

iTrader: (10)

Usually the dealership will ask you the name of the company you financed through, they will call for the exact payoff number, and if they agreed to give you more then what you owe, they will pay off the car note and put the rest of the settled trade-in value towards the car you are purchasing. Unfortunately if they only offer say 9k for your car, then the extra 1k that you owe, will roll over onto the new car note as negative equity.

baddogz28

iTrader: (6)

I sell cars. You will need to negotiate the price first, then the trade value independently. Tell them that you are willing to give them a couple hundred dollars over invoice, which is right around $30k. Make sure they appraise the TA after you see the invoice price. The trade allowance will come off the TOP LINE SELLING PRICE. They will then add a doc fee of probably $50. They will then add the sales tax onto that number. ONLY the value after the trade is taxable along with the doc. They will then add the cost of transferring the plates. They will then add your bank payoff (they'll call the bank to find out what it is.) After that, they will SUBTRACT the rebate and you will get your net cost (if you don't want any warranties, paint protection or any other ****).

Customer Rebates and Incentives: 0.9%/1.9%/2.9% APR up to 36/48/60 mos. plus $3,500 GMAC Bonus cash


Here's approximately how it will go:

Sale price: $30,000
Trade Value: $12,000
Balance: $18,000
Doc fee: $ 50
Balance $18,050
Tax (I'll use 5%): $902
Balance $18,952
Plates (IL): $ 80
Balance: $19,032
Payoff: $10,000
Balance: $29,032
Rebate: $ 3,500
Final Balance: $25,532

Payment X 60 mos @ 2.9%: $457.64


Keep in mind this is with no $ down, and is off because of your tax rate and the individual fees of the dealer.

As far as your trade, you just give them the keys- they will pay it off for you. You will not be carrying any negative equity over to the new loan if you get more for your car than the payoff.

Hope this helps.

Chris

Chupa

Awesome, thanks a lot, that's a huge help. It also answered my question of whether it would be better to put extra money into my next car payment or use it as extra downpayment.

I guess it would also be best to completely demod the car first, as well? Maybe it would be better to sell the car privately, but then I'm lost on what to do again. Say I find a private buyer who offers $15k. I call GMAC and tell them that I'm selling it to so-and-so. Do they transfer it to his name, then he pays them what is owed, and gives the difference to me?

baddogz28

iTrader: (6)

Yes, return it to as close to stock as possible. The parts don't add value on a trade in basis.

What the private buyer would have to do is pay you the cash, then you immediately need to send the bank the $. They will send you the title, then you transfer it to him. That should be it. Keep in mind that you will pay the extra tax on the $12,000 trade value.

Tax on 30k- 1502
Tax on 18k- 900

Also keep in mind that 5% is pretty low for tax- mine is almost 7%.

JHTZ28

Selling to a private party can be handled a few different ways. I'll try to help you out on the easiest. First you will want to call GMAC to get your payoff balance. They will usually give you amount through a specific date, due to interest and timing of monthly payments, it will vary with time. Now that you have the amount you can have the buyer cut a check to you for the full 15k and you pay GMAC what is owed and keep the rest. Also some buyers are more comfortable cutting two checks, one to GMAC for the payoff amount and then one to you for the difference. Here in Texas you and the buyer will have to fill out a Bill of Sale or the new buyer can not get the car registered into his name. You will also have to fill out one other form ( I forget the name) that basically promises the buyer that you pay off the loan and get the title of the car to him within a reasonable amount of time, usually less than a month. GMAC will probably directly mail the title to you once funding has cleared. You have to sign the back and front and then the buyer will sign and take that and the Bill of Sale to get the car registered. I hoped I covered everything, good luck.

JHT