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Your Money Now
Your Money Now , Securities Consultant
Category: Finance
Satisfied Customers: 18
Experience:  30 years experience in financial services. Banking, investments, mortgages, and retirement accounts. Appear frequently in media.
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Hi there, I currently have a car loan that has about $8,000

Resolved Question:

Hi there, I currently have a car loan that has about $8,000 left on it. My Kelley Blue Book value of the car is about $9,500. If I want to sell this car myself, would I just take the money I make and pay back the bank and then pocket $1,500? Then I would just reapply for a new car loan?

And if I wanted to trade it in to a dealer how would that work? I would probably just break even with the dealer value of the car so what would I do? Trade it in and then they'll just pay off the bank and then get a new loan? Thanks!!
Submitted: 3 years ago.
Category: Finance
Expert:  Your Money Now replied 3 years ago.

Your Money Now :

Hi there. Generally, you will be better served selling the car yourself. A dealer has incentives that can be offered to you with or without a trade in vehicle.

Customer:

Ok, but how does it work then?

Your Money Now :

Hi there. Generally, you will be better served selling the car yourself. A dealer has incentives that can be offered to you with or without a trade in vehicle. Further, look up the best offer on the car you want online BEFORE you shop. Get a bid in print from a dealer on line without the trade-in.

Your Money Now :

Also, I assume you have decent credit enough to qualify for the new car loan anyway, right? New rates are at historic lows.

Customer:

Yes I do. I'm just wondering how that works. Do I take whatever I make from selling the car and pay off the loan and keep the left overs and then reapply?

Your Money Now :

Even if you do not get the top dollar in a private sell, I would probably recommend selling your car car straight out to autotrader.com or similar, and then dealing with the dealer on your new car for the maximum benefit.

Your Money Now :

Yes, pay off your old loan with revenue from the sale.

Customer:

Ok and then what if I do want to trade it in due to a really good incentive or knowing someone?

Your Money Now :

What rate is your current loan at?

Customer:

1.99

Your Money Now :

That is a good rate, but you will likely secure a similar rate on your new purchase.

Customer:

Ok.

Your Money Now :

I would still sell the car separately. It gives you more leverage and a better negotiating position.

Customer:

Ok thank you for the help!

Your Money Now :

If you have difficulty breaking even on the sale, or simply cant be bothered..... then give it to the car dealer. Not before.

Customer:

Ok I will definitely try to privately sell it first.

Your Money Now :

Please rate me positively if you feel well informed. Thanks for asking. JP

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