Buying a new car - to use trade-in, incentive, and GM card rewards to rid CC debt?

[Anonymous]

My data...

I have 2 CC balances - $6K at 0% through June, then 15.99%

$2.5K at 7.9% fixed.

My FICO hovers around 700.

I keep getting BT offers from my Discover, where I have no balance, for either 0% or 2.9% with 3%-4% fees, so as long as I'm getting the offers, I can keep BTing that balance while paying it down.

I just paid off my car loan which was $300 a month. I intend to use that monthly $ to pay down CC balances. This car is a 2003 Chevy Cavalier with only 40,000 miles. Some cosmetic damages.

But I had another idea.

What if I bought a new Cobalt (about $12,500 MSRP) - and financed it. But I cashed out my Cavalier trade-in (c. $2,500), factory incentive ($1500), and GM Card Rewards ($2200, but GM is offering to up it to $3000 as an incentive to buy their vehicle.) So I could walk out with $7,000 cash to pay off almost all of my credit card debt. In the meantime, I'm getting a new vehicle, under warranty, for a similar amount of $. (I had financed way more than the value of the car, because I kept getting new vehicles before achieving equity in the old one.)

What do you all think of this idea?

[Creditaddict]

I think those cash backs go towards the cost of the car, but if you brought your own financing you might be able to get them to cut you a check for it... which would be fun!

edit... I would be really interested if they would let you walk out of dealership with 12k car loan and 7k check to yourself! 

Message Edited by Creditaddict on 01-27-2009 08:09 PM

[oracles]

Hi Ace, i think you may want to post this type of situation in the auto loan forum to see if this is possible. I really dont think they will let you walk out of the dealership with a 7k check. This would go towards the car of 12.5k

I definitely could be wrong. Post this situation in the auto forum and see what they respond with.