Still owe money on a car but want to trade...

[daftphunk]

Okay, so here is the situation.

This guy hits me up with a very clean IS300 5spd that he wants to trade for my S14 that I have up for sale. However, this guy still owes... wait for it... $10,000 on the car. Hearing that, he probably hasn't paid more than a couple thousand of it off. Anyways, I don't want to take payments over on that obviously, why would I trade my car and continue to make payments on something like that.

He insists that there is a way to make it so that he keeps making payments, but as far as I am concerned, the bank owns the car and I wouldn't even be able to get a title in my hand.

Anyways, so what I want to know, is he bullshitting me or what? Cause I mean I could somehow 'trade' him my car without taking over any payments, than I would rather have his car at this point, especially because it's black with black interior AND 5 spd.

[Kuma]

The only way I could see that being possible is if the bank agreed to trade cars... Which is more than unlikely... Since your car is old and bluebook is nowhere near $10k

This is what will happen:
Yall trade cars,
Even if owner has good intentions at first, he misses a payment,
IS300 gets repo'd,
You walk to work and get passed by kid in your 240.

[collegekid]

Hell to the no. Fuck that guy, keep your car

[brndck]

Question. Are you a sucker?

[Om1kron]

Question. Are you a sucker?

Obviously since he made the thread.

[jdizzy204]

1.He gets a loan to pay off his car.

2.He pays off his car.

3.trade.

4.???

5.Profit

[fliprayzin240sx]

He can get another loan to buy your damn car...tell him to go kick rocks if he thinks he can trade cars without the title in his hands.

[tricky_ab]

1.He gets a loan to pay off his car.

2.He pays off his car.

3.trade.

4.???

5.Profit

THIS! Anything else and you're flippin' CRAZY...

He doesn't own the car, the bank does.

[daftphunk]

Question. Are you a sucker?

Lol is this not a legitimate question? If you owe money on a car you can still trade it in to the dealership. And the guy isn't trying to coerce me into trading him cars even though he still owes a lot of money on it, he just mentioned that his friend did something similar and we should research it and see if it would be possible.

Like someone else mentioned, I went to the bank and asked if something like this was possible, they said that if the bank would be willing to 'trade' the cars it would be possible, but since kbb of an 95 240sx isn't nearly the same as the kbb of an 03 IS300 it would be very unlikely.

Would have been a nice car to have though lol

[WanganRunner]

Mkay.

1.) He gets short term unsecured Prosper.com loan to pay off his car (not tied to collateral, so year/value/whatever is irrelevant, he can get up to $25k)

2.) He trades his car for your car

3.) Profit

4.) He goes out and gets another normal used-car loan at a lower rate to refi out of the Prosper loan (no prepay penalty), and he's back to having a loaned car and you're back to having an owned car, but you now own each other's.

Why is this hard?

[RiversideS13]

don't do it, it is a scam

[z32boy]

I did a trade with a guy for his 240, I owed $6000 on my car. He gave me $7500 and his car for it. I just sent the money to bank to pay it off then signed over the title when it came.

[Kuma]

^ Thats super.

[Highway Riding]

LOL
diggin further - First off what year IS? 10 year old cars are almost impossible to finance unless they have under 60K and even then it is a risky loan meaning the loanee will be paying a higher rate as the loan is deemed risky! So in short sounds like scam where you trade he gets car and stops paying and they repo it from your location. Now your out of 2 cars.

[fliprayzin240sx]

Lol is this not a legitimate question? If you owe money on a car you can still trade it in to the dealership. And the guy isn't trying to coerce me into trading him cars even though he still owes a lot of money on it, he just mentioned that his friend did something similar and we should research it and see if it would be possible.

Like someone else mentioned, I went to the bank and asked if something like this was possible, they said that if the bank would be willing to 'trade' the cars it would be possible, but since kbb of an 95 240sx isn't nearly the same as the kbb of an 03 IS300 it would be very unlikely.

Would have been a nice car to have though lol

You're not trading cars in a dealership when you still owe on it. You go under by alot. Basically, the dealership is basically buying the car you have for what is owed on it and adding that shit on top of whatever car you're trying to buy from them. So effectively, you're paying off 2 cars for 1 car. I got an idiot troop who did this. He still owed $6k on a Ford Focus that he swapped in for a brand new V6 Mustang. He's paying more per month than what it would cost to buy a GT with all the trimmings (almost $600 a month).

I did a trade with a guy for his 240, I owed $6000 on my car. He gave me $7500 and his car for it. I just sent the money to bank to pay it off then signed over the title when it came.

That doesnt count, he basically bought your car since he gave you $6k to get the title from your bank. If you're trying to trade straight up, is he still gonna make payments on a car he doesnt have anymore? Also, how do you get the title when the bank wont release it until it's paid for? No title, cant register it under your name.

[WanganRunner]

LOL
diggin further - First off what year IS? 10 year old cars are almost impossible to finance unless they have under 60K and even then it is a risky loan meaning the loanee will be paying a higher rate as the loan is deemed risky! So in short sounds like scam where you trade he gets car and stops paying and they repo it from your location. Now your out of 2 cars.

Untrue.

Lots of credit unions will finance anything you have title to. I've financed 30+ year old cars with mine, which actually works out great since they don't depreciate so, at ~1.99%, there's no reason not to finance one. Old cars actually make better collateral than new cars, I'm not sure why most banks don't lend on older stuff.

[Phlip]

I'm not sure why most banks don't lend on older stuff.

Because 12 times out of 10, they’re no longer covered under a warranty that is worth a shit, and the increased age/wear on them enhances the chances of a cripplingly expensive maintenance issue, which then enhances your chances of just saying “fuck it, come take it, it don’t work anyway” and leaving them stuck with a car they can’t even shift ownership of at auction.