E46 BMW Social Directory E46 FAQ 3-Series Discussion Forums BMW Photo Gallery BMW 3-Series Technical Information E46 Fanatics - The Ultimate BMW Resource BMW Vendors General E46 Forum The Tire Rack's Tire Wheel Forum Forced Induction Forum The Off-Topic The E46 BMW Showroom For Sale, For Trade or Wanting to Buy

Welcome to the E46Fanatics forums. E46Fanatics is the premiere website for BMW 3 series owners around the world with interactive forums, a geographical enthusiast directory, photo galleries, and technical information for BMW enthusiasts.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact contact us.

Go Back   E46Fanatics > Everything Else > The Off-Topic > General Off-Topic

General Off-Topic
Everything not about BMWs. Posts must be "primetime" safe and in good taste. You must be logged in to see sub-forums.
Click here to browse all new posts.

Reply
 
Thread Tools Search this Thread Rating: Thread Rating: 9 votes, 5.00 average. Display Modes
Old 10-19-2009, 08:59 AM   #1
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
Trading in a car with a lien

Say I don't want to bother with the hassle of selling and would rather take the hit and trade.

I'm not upside down on the car, but I do owe ~$7500. (01 330ci 105k) If I wanted to trade it in at a major dealership for something else, how does the transaction work?

Do they take the car, pay off the lien and sell the car?

Are they going to give me a hard time if it has a lien?

Ideally I'd like to trade it in and use any left over equity (I know, horrible term to use when talking about cars) of whats left vs. what I owe as down payment...if that makes sense.

Any salesmen out there that could give me some info on what to expect?

Thanks
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 09:07 AM   #2
Jack_Smackus
Knight Rider
 
Jack_Smackus's Avatar
 
Join Date: Dec 1969
Location: Calgary, Canada
Posts: 427
My Ride: 1993 BMW 320i
The amount owed on the car gets thrown into the price of the new car.
__________________


Real Programmers Don't Document - If it was hard to write, it should be hard to understand.
Jack_Smackus is offline   Reply With Quote
Old 10-19-2009, 09:09 AM   #3
Elefant
Banned
 
Join Date: Jul 2005
Location: Cedric is smelly
Posts: 1,183
My Ride: and hes hairy too
why r u trading? you are gonna get raped on a trade. just try to sell the car. for ex if the dealer wants to give you 4k, just try selling it for 5k firm. you still take a loss but thats an extra 1k in your pocket
Elefant is offline   Reply With Quote
Old 10-19-2009, 09:15 AM   #4
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
Quote:
Originally Posted by Jack_Smackus View Post
The amount owed on the car gets thrown into the price of the new car.
Can you explain a little more?

So I owe $7500, I buy a car for $10,000, the loan becomes $17,500?

I don't follow. They get the car but I still pay for it?
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 09:27 AM   #5
T-MC-G
Registered User
 
Join Date: Dec 2004
Location: Austin, TX
Posts: 368
My Ride: Range Rover Evoque
If you walk into a dealership I'll bet you it will go down something like this...

-Find a new car for lets say...oh...$18,000

-They take your car to have a mech. look at it and tell you they will give you $3,500 in on trade

-They will call the bank you have a loan under and get the pay off, if you are correct and it is $7,500 then they will break the news to you that you need to come up with the extra $4,000 to get out of your BMW clean.

-You will tell them you don't have $4,000

-They will "talk with the manager to try and help you out because you seem like a good guy".

-They will come back and say they will take the hit and "up" the value of your trade in to $4,200 from $3,500 then drop the price of the new car by $300. At that point they will already have all the paper work done up for you to sign where they pay off your $7,500 loan for you and then have a bill of sale and loan approved for $21,000 on a car that is worth prob around $14,000...
__________________

Tell me what you don't like about yourself...
T-MC-G is online now   Reply With Quote
Old 10-19-2009, 09:31 AM   #6
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
^Yikes.

So the only real option is to sell?
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 09:32 AM   #7
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
What about "flipping" with my current bank financing the car?
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 09:52 AM   #8
T-MC-G
Registered User
 
Join Date: Dec 2004
Location: Austin, TX
Posts: 368
My Ride: Range Rover Evoque
What part of salem are you from? I used to live in Manchester, and then Portsmouth... Anyways, what do you want? Just a new car or to save money?
__________________

Tell me what you don't like about yourself...
T-MC-G is online now   Reply With Quote
Old 10-19-2009, 09:55 AM   #9
SLVR JDM
Registered User
 
Join Date: Nov 2005
Location: Work
Posts: 1,526
My Ride: reclining rear seats
sell it outright
__________________


** Removed **
SLVR JDM is offline   Reply With Quote
Old 10-19-2009, 10:00 AM   #10
ROOFLESS
Registered User
 
Join Date: Feb 2006
Location: Toronto\Jupiter FL
Posts: 2,158
My Ride: has a 3.2L bag now
Quote:
Originally Posted by Sam 330ci View Post
Can you explain a little more?

So I owe $7500, I buy a car for $10,000, the loan becomes $17,500?

I don't follow. They get the car but I still pay for it?
no. it works like this....

Cars price = $17500 -(minus) trade value $7500 (based on dealers appraisal)

Net difference = $10000 + dealer fees + taxes (approx $12300 incl taxes{in canada anyways})

You still owe the bank $7500 for the trade so it gets tacked on after everything

$12300 + $7500 = $19800...

You can then choose to finance the difference or pay cash...

hope this helps
__________________
ROOFLESS is offline   Reply With Quote
Old 10-19-2009, 10:03 AM   #11
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
I just want a new car, something bigger.


The part I dont understand is that if I trade the car, then the dealer takes it and resells it. How come I am still paying the $7500 if THEY have the car?
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 10:06 AM   #12
ROOFLESS
Registered User
 
Join Date: Feb 2006
Location: Toronto\Jupiter FL
Posts: 2,158
My Ride: has a 3.2L bag now
Quote:
Originally Posted by Sam 330ci View Post
I just want a new car, something bigger.


The part I dont understand is that if I trade the car, then the dealer takes it and resells it. How come I am still paying the $7500 if THEY have the car?
because YOU owe the money...not the dealer...
__________________
ROOFLESS is offline   Reply With Quote
Old 10-19-2009, 10:11 AM   #13
T-MC-G
Registered User
 
Join Date: Dec 2004
Location: Austin, TX
Posts: 368
My Ride: Range Rover Evoque
basically if your car is only worth $5000 as a trade in. They will pay the whole $7,500 to your bank to get you out of the loan, but that extra $2500 that they forked over to pay off the loan gets added onto the new loan you get. so you sorta "over pay" for the new car to make up for what you are upside down. If you are not upside down then yes, the dealer ship will trade in your car and straight up cut a check out to the bank for the balance due on your car in exchange for it as a trade in.
__________________

Tell me what you don't like about yourself...
T-MC-G is online now   Reply With Quote
Old 10-19-2009, 10:23 AM   #14
BeRzErKaS
Registered User
 
BeRzErKaS's Avatar
 
Join Date: Oct 2004
Location: LI, NY
Posts: 324
My Ride: 330ciC; Boosted E36
Send a message via ICQ to BeRzErKaS
Quote:
Originally Posted by T-MC-G View Post
basically if your car is only worth $5000 as a trade in. They will pay the whole $7,500 to your bank to get you out of the loan, but that extra $2500 that they forked over to pay off the loan gets added onto the new loan you get. so you sorta "over pay" for the new car to make up for what you are upside down. If you are not upside down then yes, the dealer ship will trade in your car and straight up cut a check out to the bank for the balance due on your car in exchange for it as a trade in.

This is the simplest explanation.

Also note that even if you are not upside down on the car the dealer will still lowball you so that they can turn a profit when flipping your car. They are not out to do you any favors. They are running a business. If your car is actually worth $7500 and you owe $7500, be prepared for them to offer you $5000 and not a penny more.

Your best bet is to sell your car outright.
__________________

BMW 3 Series - "Welcome to the club."

Supercharged E-dIrTy-6 325is 5sp
Drop Top E-sPorTy-6 330cic Step
BeRzErKaS is offline   Reply With Quote
Old 10-19-2009, 10:36 AM   #15
ZimZimma328Ci
Registered User
 
ZimZimma328Ci's Avatar
 
Join Date: Jul 2004
Location: Columbia, SC
Posts: 2,209
My Ride: Mopar
Send a message via AIM to ZimZimma328Ci
Sell the car for what you owe. It seems like you could get $7500 for it. The dealer isn't going to pay your loan off just because they bought the car from you, although they will probably sell it for at least double what they give you for it. How many miles are on it? Weren't you having trouble with it??
__________________
ZimZimma328Ci is offline   Reply With Quote
Old 10-19-2009, 10:52 AM   #16
wrighterjw10
Registered User
 
Join Date: Dec 2006
Location: Palmyra (Hershey), PA
Posts: 459
My Ride: 2002 330ci
Amt of loan - value of vehicle = Net (can be + or -)

Net + value of vehicle = new sales price.

Example:

Amt of loan = $7500 Value of vehicle (per edmunds) = $7200

This means you owe the dealer an extra $300.

Price of new vehicle, $18,000. Plus the outstanding $300 for your old car = $18,300.
__________________
wrighterjw10 is offline   Reply With Quote
Old 10-19-2009, 11:02 AM   #17
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
Thanks for all the insight.

Also love how I got facepalmed by a canadian car salesman. Thats a new low for me. I didnt get how they could take the car AND have me still paying for it. No need to get personal, "eh?"

I had issues when I bought this car in April, but I since solved all the problems and its running smoothly now. Reason im considering a switch is I need some
more room, 330ci isnt the ideal hauler.

With the recent replies about the dealer paying off the loan in mind, Im gonna go look at some
small SUVs this week. Thinking perhaps a Jeep Liberty LTD or a 4 Runner. Anyone have suggestions? Wanna stay around ~$12k.
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 11:03 AM   #18
Sam 330ci
Registered User
 
Join Date: Nov 2006
Location: Salem NH
Posts: 3,574
My Ride: 03 530i
Send a message via AIM to Sam 330ci
Thanks to Berzerkas and Wrighter for the clear explanations.
__________________
Sam 330ci is offline   Reply With Quote
Old 10-19-2009, 11:05 AM   #19
dniper71
Registered User
 
Join Date: Jul 2005
Location: Earth
Posts: 46
My Ride: A car
pretty much what tmcg and nobagbimmer said... they'll just incorporate the difference of what you owe on the car and what your car is worth into the new loan. Pretty crappy situation and not much you can do besides selling the car and hoping to break even. The only upside to trading in is that you'll save the trade in value of your car in taxes... besides that, you'll get bottom of the barrel value.
__________________
** Having a single animated non-BMW image in your sig it not allowed - Tim330i **
dniper71 is offline   Reply With Quote
Old 10-19-2009, 11:27 AM   #20
mindofarock
Registered User
 
Join Date: May 2008
Location: Los Angeles
Posts: 221
My Ride: 2001 330ci
Quote:
Originally Posted by Sam 330ci View Post
The part I dont understand is that if I trade the car, then the dealer takes it and resells it. How come I am still paying the $7500 if THEY have the car?
So you want them to payoff your car so they can keep it then credit you for $7500
or the 1k or 2k you've put in so far?

The financing company or bank owns your car. You've merely been putting in payments to acquire it and you've barely put a dent into it. Just because the dealership physcially has the car doesn't mean they won't have to incur your debt and pay it off.

Even when they do sell it, they are doing all the work..and you don't even own half the car so how can they offer you any value for it. If you want the most money for your car, sell it on your own. Or pay a friend to help you sell it.
__________________

Last edited by mindofarock; 10-19-2009 at 11:31 AM.
mindofarock is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Censor is ON





All times are GMT -5. The time now is 06:50 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
(c) 1999 - 2011 performanceIX Inc - privacy policy - terms of use