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...

 

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?

 

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

 

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.

 

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.

 

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.

 

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.

 

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!

 

+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.

 

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.