Dealerships that pay off current loan if you buy vehicle?
 

Anyone know of dealerships in the 757 area that have payed off current auto loan if you buy a vehicle from them?


Thinking it's mostly just a pick up line / shady behavior but, just wondering if anyone in the area had a good experience with this...

Re: Dealerships that pay off current loan if you buy vehicle?
 

Yea the ones that just add the loan you have on top of the price of the car your buying. Lol


J/K but seriously who is advertising this?

Re: Dealerships that pay off current loan if you buy vehicle?
 

Get it in writing. I can't stress that enough.

Re: Dealerships that pay off current loan if you buy vehicle?
 

The honda dealership on battlefield was advertising that, when I showed up with my truck no one would talk to me, no one would give the time of day. Not even the manager. So, I made a scene, which just got them to make up a bunch of excuses and not give me a straight answer.

Re: Dealerships that pay off current loan if you buy vehicle?
 

Correct me if I'm wrong but i believe the way that works is the amount that your loan is, is taken off the sale price of the vehicle you buy, meaning the person who sold you the car gets less commission.

Re: Dealerships that pay off current loan if you buy vehicle?
 

I use to sell cars at HONDA of Tysons Corner up in 703

How it works is they take over your existing loan from the bank that you have the loan through, and add it on to the price of their car. They don't just pay it off, otherwise I could walk in with a car I owe twenty grand on buy a car for 15 grand and be on my way. It would be sweet if it worked that way but if its to good to be true it is. You have to read the fine print.

Although, some dealerships may offer a better deal on their car if you do the deal and switch financing to them and they take over your old loan. But thats because they are making the money and then some on the back end. Its all a way of shifting numbers to get excited buyers to buy and not think about the whole picture.

hope that helps

They always tought us that if its to good to be true it probably is. We had to explain this to customers all the time that had the WRONG idea about all that.

Re: Dealerships that pay off current loan if you buy vehicle?
 

Because they knew you wanted to trade in your truck, and they don't want a car they know they won't move for 6 months, or will have to lose money on it at auction.

Re: Dealerships that pay off current loan if you buy vehicle?
 

lol, you ever heard of the term "negative equity?"

If the dealership offers to buy your car for $12K and you owe $14K, that add the remaining $2K on TOP of your new loan. So if you buy a $20K car, you will be financing $22K.

negative equity is a bad thing. it hinders you from selling your car in the future without having to add large payments to your loan.

But then again, you could always buy the car, add the gap insurance, then "mysteriously" total the car when your sick of it. but I don't approve of that! ;)

Re: Dealerships that pay off current loan if you buy vehicle?
 

+1 on the gap insurance LOL.

Also, it isn't the dealership that pays off your loan, it's the bank. Dealers that offer loan payoff are still going through either a bank or their own financing company(i.e. GMAC). Most banks will finance up to 125% of the value of the car you are buying, so if you owe too much on your current vehicle, you will either have to come up with a big down payment to knock out some of that negative equity, or wait a few more months to buy that new car.

Re: Dealerships that pay off current loan if you buy vehicle?
 

Yup.

A deal like this is how I wound up with $10,000 in negative equity that I had to transfer into a personal loan.

Shit sucks, 10K down the drain.

Re: Dealerships that pay off current loan if you buy vehicle?
 

I had $3400 in negative equity on my Trans Am when I traded it in toward the V. Thankfully I got a good deal on the V, so I really ended up buying it for right around market value anyway. Plus my interest rate was nearly cut in half so my payments actually went down with the new car. Where I really lost money was the eight grand in parts and time installing them(myself) on my TA.

Re: Dealerships that pay off current loan if you buy vehicle?
 

Very few banks will go 125% loan to value anymore... most are 110% and some not even that any longer.

LOL at people who think the dealer will actually pay off your car... you're simply rolling your negative equity into the cost of the new car.

Re: Dealerships that pay off current loan if you buy vehicle?
 

yea i wouldn't do it unless you really needed a new car. i traded my 05 F150 for my 06 after i got promoted and had to payoff a shitload of neg equity. but i really wanted out of that stripped out truck.

ford did family pricing 2 weeks after i bought my 05, i got my 06 in april 06 for like 6k under sticker, but i had to cough up alot of money since the bank wouldnt let me finance over 26K at the time.

I'll never cough up several G's and finance close to sticker like that ever again!!

when i traded the 06 for my 08 GT i only had to cough up 1700 bucks.

I want a 2010 stang, but most likely won't do it unless i can sell my 08 for a decent amount.

Re: Dealerships that pay off current loan if you buy vehicle?
 

I don't understand how you guys can stomach trading cars and pissing away so much money so often.

Re: Dealerships that pay off current loan if you buy vehicle?
 

DONT GO TO RK CHEVY THEY WILL FUCK YOU.