Edmunds Answers

Voted Best Answer

  • avatar mechinc1 02/25/10 12:32 pm PST

    "6 of one.....half dozen of the other" is the old saying isnt it?

    I would also look at paying it off and selling it privately. You should make a lot more than what the dealership is willing to give you on a trade in. I know it might be a little more work, taking calls and dealing with tire kickers but if the car is decent shape you may make some good coin and use that to put as down payment.

Answers

  • mechinc1 02/25/10 12:32 pm PST

    "6 of one.....half dozen of the other" is the old saying isnt it?

    I would also look at paying it off and selling it privately. You should make a lot more than what the dealership is willing to give you on a trade in. I know it might be a little more work, taking calls and dealing with tire kickers but if the car is decent shape you may make some good coin and use that to put as down payment.

  • mojoe2 02/25/10 12:47 pm PST

    That was my question. I didn't know if, from the financing perspective, it mattered to have the inflated down payment, or if the dealership would get some kick-back from paying off the loan. Just wondering if there's an edge either way.

  • texases 02/25/10 2:23 pm PST

    I'd pay it off, just to keep the new car purchase as simple as possible. Every complication is an opportunity for the saleman or finance man to confuse things and get extra money out of you. I'd also check into outside financing (bank or credit union) just to have an alternative.

  • dboe 03/06/10 2:23 pm PST

    Great adivce about paying off before trade-in. You don't want to complicate things beyond what a salesperson might present.
    If selling privately, it should not be a big deal in any case. Unless you get some big roller ready to throw a bunch of cash on you. In CA we still have to get smog checked on any cars sold used, so there is likely a day lost right there. You could have that done beforehand also (smog check is good 6mos on a resale).
    If it is just a matter of signing over the title after that, no problem.
    The last car I sold privately (the best way to go) I still had a loan on. The buyer had his bank send the money to my bank, my bank (not local) paid the loan off and issued the title (in less than 48 hrs) and we met at the buyers bank to sign everything off. During the waiting time I had the car 'smogged' and cleaned up for the buyers. When we went into sign all the paperwork was on the table.
    Nice way to ensure everything was done correctly.

ADVERTISEMENT

Top Car Selling Experts View More

Rank Leader Points
1. MrShift@Edmunds 1270
2. Stever@Edmunds 905
3. texases 535
4. morin2 435
5. karjunkie 275
6. knowledgepower 235
7. isellhondas 205
ADVERTISEMENT