Questions about trade-ins

Anonymous · ‎08-20-2009

Hubby and I are wanting to trade-in our 2006 Miata GT and get something that has more room. (The Miata was fun but we are thinking about getting a dog and there isn't any room for me, hubby and a dog in the Miata ) We're not upside down on the loan. Loan is through Capital One Auto. My question is, how does the trade-in work in regards to paying off the original loan from Capital One? Does the dealer pay Capital One and then the tradeline will update on my CR as being paid in full? How long does the process take? We only have the one car, so will I have to wait for them to clear everything with Capital One first or would I be able to drive the new car off the lot same day?

Thanks in advance!

Anonymous · ‎08-20-2009

When they submit the deal to the banks there is an indicator if the deal involves paying off/trading in your existing Auto trade line.

If you cannot support two Auto trade lines at a time, Deal apporoval is then granted on that stipulation

Anonymous · ‎08-21-2009

The dealer will assess your current car's value and offer a trade in amount. When you sign the contract it includes this transaction. Once you drive off in your new car, they process the new loan and pay off the old loan. This can take OVER 30 days.

Be sure to verify payment in full on the trade in before skipping the next payment. Some people have just assumed it was paid off immediately, not made another payment and then got slapped with a 30 day late.

The last time I did a trade in I had to make a car payment...but once the dealer pays it in full they would cut you a check back for the overage.

Anonymous · ‎08-21-2009

Thank you both!

I have autopay set up on the current loan, so I will leave it in place to make sure I don't get dinged for a missed/late payment.

I've prequalified for a loan from Chase (guestimating the trade-in value - amount still owed ), so now I guess it is just time to find the best deal.

Thanks again!