Frequent Contributor
Posts: 428
Registered: ‎01-21-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

StartingOver10 wrote:

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself  (higher rate or longer term or both) with the dealership finance guy. Since you  have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself. 


T


StartingOver10 wrote:

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself  (higher rate or longer term or both) with the dealership finance guy. Since you  have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself. 


Trading in a car is not always a big ripoff. 

 

In my state you are taxed on trading difference (Purchase price of t


StartingOver10 wrote:

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself  (higher rate or longer term or both) with the dealership finance guy. Since you  have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself. 


Trading a car is not always a bad deal. In my state you are taxed on the trading difference (purchase price of the new car minus the trade in allowance on the trade) So if you are trading a vehicle worth $15000 you save $1200 in sales tax. 

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