2nd Auto loan/Traded in...

[pip3man]

Alright so I traded in my car I bought last November for a newer ride and ended up with about $8k in negative equity. I'm just wondering - for those who's been through this process how long does it typically take a dealership to send the payoff check to the lender? Same creditor is financing this 2nd loan (NMAC). Also what happens to the original tradeline on my credit report after trade in? Does it get deleted or remains on my report as closed and PIF? I ask cos the 2nd auto loan is already reporting alongside the first so right now it seems like I have two current open auto loans at the same time and it's killing me. Any advice, thanks

[faze2988]

I have quite a bit of experience with this process. I've been through it a couple of times. It really varies and can depend on the dealership but I strongly advise you to stay on them and keep checking up because they will procastinate if you let them. Usually within 1-3 weeks they will overnight a check to the bank. Also be reminded that you are still responsible for monthly payments on the old loan until they pay it off. As for the reporting of the old loan it will report as closed and PIF. 

[pip3man]

---

@faze2988 wrote:

I have quite a bit of experience with this process. I've been through it a couple of times. It really varies and can depend on the dealership but I strongly advise you to stay on them and keep checking up because they will procastinate if you let them. Usually within 1-3 weeks they will overnight a check to the bank. Also be reminded that you are still responsible for monthly payments on the old loan until they pay it off. As for the reporting of the old loan it will report as closed and PIF. 

---

Thanks alot you've pretty much answered my questions. In regards to being responsible for the payment what if I pay and they later receive the payoff check, do they like refund me and also should I cancel the GAP on the traded vehicle or wait till pay off is confirmed? 

[Hoya08]

It can take 7-10 business days for the check to clear the financing institution.

If you don't bank with the financing institution, you will have to request a refund for the extra payment made.  If you bank with them, they will automatically credit the extra payment to your checking/savings account.

Once you've sold the vehicle, there's no need keep GAP insurance or any insurance on it.  You should have a copy of the paperwork to prove you're no longer the legal owner of said vehicle.  Of the 3-cars I've sold, I've always cancelled insurance after finalizing the sale.