Financing and Trade-In's

[cyclonic]

Hey guys,

The idea has just flashed into my tiny little brain that maybe i'd like to trade in my Corsa on a Astra CD Coupe. However, i'm concerned about the whole Trade-In process, espcially with the car under finance.

Is it just a case of asking for the trade, applying for the new finance with the payout figure and remaining trade in price built in? Is it hard to do? Will my missus kill me?

As much as I love my little Corsa, the Coupe's style is so attractive.

Any thoughts appreciated, be aware, i'm NOT SERIOUS at the moment.

[shoey85]

nope its not hard to do, all you need is to make sure your trade is worth more than the payout fig, eg: sold my veccy to my m8 for 21k pay out is only 19k im left with 1 k to use as a deposit, if you owe more than the trade then my advice is save the gap in cash first, finance companys generally dont like to give you more than the car you will be buying is worth. the dealers make it so easy to do, any one could do it..
as for new finance the yard will help you out, my uncle works @ rockingham holden and would look after ya if ur interested.
GOOD LUCK

[MK]

i believe Crispy had few issues when doing something similiar...check out previous posts

[pred8r]

When i bought my van we decided to sell/trade our Getz in.

The place i was buying from offered $8500. We also offered it to the place we bought it from as an outright sell their offer was $10550 (we took this offer).

Unfortunately the payout figure on the loan was $14500 which meant I had to come up with another $3.5k before they would take it.


What we learned;

When disposing of a car;
-Check redbook for your cars value (it is only a GUIDE for pricing)
Shop around for buyers (even dealerships), get a second opinion even if pressed for time.
-Target who you will sell it to (eg. a getz in Melbs E wont be as attractive as in the W, hence higher buy prices in the west)
-Know your payout figure, and be able to access money for the shortfall(if there is one) if you NEED to sell
-$100 is still $100 (think of it as however many hours it takes to earn it)

When buying
-DONT roll accessories/tint/magicfairypolishingstainremover into your finance (It comes back to bite you, we did with the getz - READ ABOVE)
-Be vague about what you want to the dealer, even if you know exactly (when I got my SRi there was only 3 on the market, 2 dealers knew, the 3rd (one i wanted) didnt know this, $2k price drop)
-If its something 'special', colour/features etc know how many are available to you.
-$100 is still $100 (think of it as however many hours it takes to earn it)

Knowledge is your friend, use carsales for that.

No your Mrs probably wont be happy ;) (MOST women dont understand men and their passion for cars. Kinda like us with handbags and shoes.)

[platypus]

i've done it - easiest way ring your finance company - tell them what you want to do, they will refinance you for new car and un-encumber your vehicle (if the car was mortgaged) then transfer the encumberance to the new vehicle.

but organise the finance FIRST - can take a little while to iron out the wrinkles sometimes, then your set to resign the loan

[pred8r]

i've done it - easiest way ring your finance company - tell them what you want to do, they will refinance you for new car and un-encumber your vehicle (if the car was mortgaged) then transfer the encumberance to the new vehicle.

but organise the finance FIRST - can take a little while to iron out the wrinkles sometimes, then your set to resign the loan

The bad thing about doing this is if the car you are buying is new, the loan increases by the shortfall and you will just lose a LOT more on the next trade-in - unless you pay the whole loan out first.
At least with a 'bargain' 2nd hand one you can 'hide' the loss on the next trade and may not lose as much long term.

If OTOH there is no shortfall just do a comparison on the fees/interest rates you are being offered to what you are currently paying.

[platypus]

thats true, but if coming out ahead were the question, then you wouldn't do it, as you also extend the initial loan by an extra 3-6 years... thats not sensible at all, but there are times that we need to move up

[Mainframe_Module]

im planning to do this in two months or so when i get an astra coupe too.

im trading in my 06 (well built in 05 but 06 compliance plate as i got it in january last year) toyota yaris auto in order to get a cdx coupe manual.

i currently owe around 15k i believe on the yaris and working to get that down, i get a bonus in june so ill slap that onto it and im hoping to get aroundt hat when trading it in...i know im taking a loss though, as i paid alot more than that for it when new, but i plan to keep the astra for allllottt longer so hopefully i wont have to go through this process in another two years.

im changing finance companies too though, ive found either sutherland credit union or westpac have pretty good car loans and i think im going to try going through them if i can get a good rate.
im with toyota finance at the moment at around 8.5% over 6 years.

but yeah, it can be done...and is done on a regular basis from what ive heard. the main thing is making sure you dont end up in negative equity, its not worth it if your financing a car for more than its worth, because as it is it will depreciate heaps...let alone having even more ontop of that.

[CJB]

i believe Crispy had few issues when doing something similiar...check out previous posts
Indeed I did!


I have negative equity built into my loan, and I also have a balloon, so chances of me ever actually owning the Astra outright are slim to none, I will probably have traded the car in for another before the end of the loan anyhow.

They will just give you a trade in amount, pay that off your loan and refinance you with whatever is owing on the loan into the new car. However, some finances companies wont do this if it's a certain amount of negative equity (i.e more then $3000) because it's a risk for them, but most will.

It's not really a good thing to do, it's better if you can get the whole car paid out, or, have your loan equal to the amount the trade in will be, i.e they offer you $10k, and you only owe say $10k, or there abouts on your loan. That would be the ideal situation, otherwise you just bury yourself into debt, and always owe more for the car then it's worth.

IMO, if you're going to do this, which is fine, up to you, at least go the CDX. You might be lucky and be able to locate an 06 one which would be discounted, or just work a good deal.

I say, make it worth it if you plan to go down that road!

Easy as to do, just discuss it with the Business Manager and make sure there is no residual on the loan whatever happens, state you do not want that!

[cyclonic]

Thanks guys!
All your input was once again invaluable, and very much appreciated.

Well as much as I want to, i'm going to wait before trading. The price difference between the payout figure and the trade-in price on the Barina is far too high right now. Plus, the boss has also canned it.

I think i'll hold onto it for another year or so and then check it out again. Kinda of a pity really - woulda been nice to turn up to a cruise in a brand spanking new car!

[Shaun]

If you can try to get what you owe on your Barina. They have whats called Over Allowance . Meaning that if you owe for arguments sack $7,000 on your Barina and they offer you say $5,500 on the Barina they will give you less discount off the New Car. Meaning they use they margin to cover the other if you ask for them to give you what you owe. Its a better way of doing it. Just means less discount on your new car.

For Example if i took the trade offer of $1X,000 for my SRi T on a VXR i would have got the VXR for arround $44k. But when i needed to get my pay out figure the VXR Became a $47K car again. they were using the extra to cover the trade and they still had the same margin. They work on wholesale prices nothing else nothing more and they look at the Age and KM of the car. dont matter if its still in showroom condtion or not. The only look at it as a small factor.

If you can sell the Barina Private. you will get more money for it.