Car Financing Question

[zod96]

I have a question on the financing. If I were to get another loan threw Capital One Blank Check program how would it work exactly? I mean I owe 23K on my car. You have offered me 17K for my car. The car I want out the door is say 27K. When applying for the capital one loan would I finance only say something like

Car=27,000 My Pay off=23K Trade in=17K difference would be about 16K. Would I only ask for a loan of 16K then from Capital one for the new car? Your interest rate was 8% capital one is 3% big difference. That is why I am asking.

 

[DesiPower]

I don't think that's gonna work. I don't believe Capital one will cover the under water portion of the current car. You might have to take the 6k hit yourself and then take the loan 10k.

That 16k loan things works when you go through dealer's loan agents, now if the dealer's agents can take you through Capital one then it can work. You can tell the dealer that you are getting 3% and ask them to match

 

[Lifted]

Car=27,000 My Pay off=23K Trade in=17K difference would be about 16K. Would I only ask for a loan of 16K then from Capital one for the new car?

Your math is off.

You owe 6k
New car 27k
___________
New loan 33k + taxes, fees, etc.

 

[DesiPower]

Your math is off.

You owe 6k
New car 27k
___________
New loan 33k + taxes, fees, etc.

1. New car = 27k
2. OP owes 23k on the current car, dealer will only give him 17k for the car = 6k (under water)
3. new car 27k - current car traded for 17k = 10k

add 2 and 3 = 16k

 

[drinkmorejava]

1. New car = 27k
2. OP owes 23k on the current car, dealer will only give him 17k for the car = 6k (under water)
3. new car 27k - current car traded for 17k = 10k

add 2 and 3 = 16k

You want to check that again. He can't have 17k to pay off his old loan and 17k deducted from the price of the new car.

 

[Jumpem]

Your math is off.

You owe 6k
New car 27k
___________
New loan 33k + taxes, fees, etc.

This.

 

[DesiPower]

You want to check that again. He can't have 17k to pay off his old loan and 17k deducted from the price of the new car.

you are right in a way, this cannot happen exactly like that. That's why I said if OP get the whole thing financed through the dealer selling him the new car, they can roll in the amount into the new loan.

 

[MomentsofSanity]

1. New car = 27k
2. OP owes 23k on the current car, dealer will only give him 17k for the car = 6k (under water)
3. new car 27k - current car traded for 17k = 10k

add 2 and 3 = 16k

New car = new debt of 27K. Old debt is 23K. Total 50K. Dealer gives 17K trade leaving 33K

 

[waggy]

1. New car = 27k
2. OP owes 23k on the current car, dealer will only give him 17k for the car = 6k (under water)
3. new car 27k - current car traded for 17k = 10k

add 2 and 3 = 16k

lol

 

[jagec]

You want to check that again. He can't have 17k to pay off his old loan and 17k deducted from the price of the new car.

You probably could have made a few bucks off of him if you had kept your mouth shut and played your cards right. Instead, you have nothing.

 

[dbk]

nice 10k upgrade!! ok only 4k but paying 10k for it!

 

[DesiPower]

OK, faceplate's on me, lol, sorry Lifted, I did not read the last line of you post thinking it was your signature... so it didnt make sense to me.. not to mention how much I failed at my math. Now I recall, a friend of mine got a car from drivetime and same thing happened to him...

 

[ZaneNBK]

1. New car = 27k
2. OP owes 23k on the current car, dealer will only give him 17k for the car = 6k (under water)
3. new car 27k - current car traded for 17k = 10k

add 2 and 3 = 16k

Maths is hard?

 

[cbrsurfr]

Why are you digging your debt hole deeper? Rolling over debt from the old car is never a good situation. Stop the cycle.

That's how my renters have a $600 month payment on a used Jeep Compass.

Will the rate difference savings outweigh the negative equity?

 

[ZaneNBK]

Why are you digging your debt hole deeper? Rolling over debt from the old car is never a good situation. Stop the cycle.

That's how my renters have a $600 month payment on a used Jeep Compass.

Will the rate difference savings outweigh the negative equity?

I used to do that kind of crap when I was young, never to this degree though. It's bad and just snowballs the debt.

Hell, you're already $6K underwater and wanting to buy a $27K car? If you can afford to pay off the $6K you owe, right now in cash, beyond what it's worth (in trade anyway) then sure, go for that $27K car. If not, you're just screwing yourself.

Right now I'm looking at a ~$37K car (Hyundai Azera Limited w/ some addons) and I feel like that's a shit ton to spend on a car even though the payments would only be about 5% of my after tax income.

Being car or house poor is a shitty way to live.

 

[CurrentlyPissed]

What you are trying to do is called "rollover". It's possible, if your credit is good enough. Granted, 6k is a lot to roll over for a 27k car. I don't think even with good credit your going to get that much. Most bans with good credit will do 115% car value. With outstanding and immaculate credit you can push to 120% of the cars value.

That's also assuming the 27k car, books, for 27k. And not 25k. Can go the other way too, with rebates. Car may be priced at 27k but values at 29k, due to rebates it's 2k less.


When doing rollover the best thing to do is get a vehicle end of year, and get as many rebates on it as possible. This way rebates help eat some of your rollover.

For example

6k roll over

Car is normally 30k, books for 30k. But has 4k in rebates. So paid value is 26k. Bank loans roll over, total cost of car 32k. So that way you technically only roll overed 2k, and not 6k.

 

[Kroze]

Your math is off.

You owe 6k
New car 27k
___________
New loan 33k + taxes, fees, etc.

:biggrin:
Debt for life yo!

 

[ZaneNBK]

On top of all these replies, if you're that bad at math, you need to be saving as much as possible.

 

[RossMAN]

LOL at the replies, this is why I keep coming back.

 

[Soundmanred]

I went threw the math, it seams correct.

 

[zod96]

The reason is. My current car is a gen coupe 3.8 track. Manual transmission. I have a bad back. Its getting worse with age. Its very difficult to drive the car now. When pushing in the clutch it hurts. I also feel every bump on the road with the super firm suspension which hurts the hell out of my back. That is the only reason why I am looking into a car. I need something higher off the ground and an automatic and a soft suspension. I will be having back surgery probably within the next month. So its either drive my current car and be in pain while doing so and making my back pain worse, or look for something else...

 

[boomhower]

The reason is. My current car is a gen coupe 3.8 track. Manual transmission. I have a bad back. Its getting worse with age. Its very difficult to drive the car now. When pushing in the clutch it hurts. I also feel every bump on the road with the super firm suspension which hurts the hell out of my back. That is the only reason why I am looking into a car. I need something higher off the ground and an automatic and a soft suspension. I will be having back surgery probably within the next month. So its either drive my current car and be in pain while doing so and making my back pain worse, or look for something else...

Why not get something comparable in value to what you have? No need to spend even more. Sounds like you bought the wrong car to start with. Get a 17k car and eat the $6k if you can, no need for another new car.

Do not roll in new debt if you can help it. I had to on my wife's car and have a $400+ payment on a Camry. Her old car started dying and had to get rid of it before the motor blew and it was worth nothing. But she's set for the better of a decade so I can deal with it.

 

[TwiceOver]

For 33k it better be a damn nice car.

I don't know if math fail is enough for ownage of the year.

 

[dbk]

Get a used Camry $17k ...ez. So numb driving that appliance - you will feel less pain.

 

[drinkmorejava]

What condition is it in. I'll give you $17,500 and pay to ship it to MA.