topic Re: Private party sale and new car purchase in Auto Loans

Private party sale and new car purchase

Zahnrosen — Mon, 26 Oct 2009 20:18:22 GMT

So, first I have to say thanks for all the education and support this forum has given up to now. In the last 12 months I've seen my fico score rise from a 438 to a 633. I've been able to buy a new car, a 2009 Nissan Altima 2.5s. The loan I got was pretty ugly at 14.49% but when I got it my fico was at 580 and I really needed a car so I was happy to just get in to it.

After purchasing the car we've found that it really isn't suitable for our needs. It scrapes the driveway badly every single time I'm in or out if I've got anyone in the back seat. Its annoying and is certainly going to damage something in the car sooner or later. Nissan has been contacted and we're informed this is just the way they've designed it for sporty performance and there's not much we can do. Despite our best efforts at cutting the driveway at an angle, going slow and about a zillion other tricks we're just not getting any love.Anyway, thats not really the point of the post I just thougt a little explanation regarding why we're swapping vehicles so soon would be appreciated.

With the ugly loan on the Altima and the very nice financing offers on the 09 Accords I'm seeing the potential to save a ton of money in interest and get a car that will work a lot better for us. Here's the question: The Altima is with Capital One Auto Finance. I would like to do a private party sale on Craig's list so I get as much as possible for it instead of a trade in. There's about a $2000 difference that I'd like to pocket. If I traded it in there would only be a $1000 or so tax savings so that doesn't seem like the right idea.

Whats the best way to sell the Altima and get those funds to Capital One so the loan will be paid off properly? Will I have any problem getting financed on the new car if the loan for the Altima is still showing up? I'll probably put $1500 - $3000 downpayment to secure the loan on the new car if that helps any.

Thanks again for all the help and your thoughts on this one.

Re: Private party sale and new car purchase

Zahnrosen — Tue, 27 Oct 2009 14:03:44 GMT

bump.

Re: Private party sale and new car purchase

daisyduke — Wed, 28 Oct 2009 01:14:14 GMT

I'm no expert, but I don't think you can sell a car that has a note on it. You don't have the title because the loan is outstanding. the only way to sell your Altima is to pay off the loan first, COAF sends you the title. You have no title to give or sign over to anyone.

You could ask a family member or whatever for a bridge loan. Pay off the remaining balance on your Altima, get the title and sell it outright.Then take the money and look for a Honda.

The deals will probably get even better as the clock ticks in December. There will always be deals. Just my guess as I have been shopping for months and everyone seems to be on the same bandwagon with special financing etc.

Re: Private party sale and new car purchase

Zahnrosen — Wed, 28 Oct 2009 04:04:09 GMT

You could be right about that. If I have to trade it in I'll do it but I'd really rather pocket the difference instead of giving it to the dealer.

Re: Private party sale and new car purchase

daisyduke — Wed, 28 Oct 2009 10:34:16 GMT

how much do you owe on the Altima?

Re: Private party sale and new car purchase

GregB — Thu, 29 Oct 2009 17:54:36 GMT

I'm confused about your statement "If I traded it in there would only be a $1000 or so tax savings so that doesn't seem like the right idea."

Do you think there will be less sales tax if you trade in?

In every state I have seen you will pay sales tax on the entire purchase price of the new car. They don't take trade in off the amount used to calculate sales tax. Is there a state where you pay sales tax on the difference?

Re: Private party sale and new car purchase

itsjustmeibe — Thu, 29 Oct 2009 18:15:34 GMT

@GregB wrote:
I'm confused about your statement "If I traded it in there would only be a $1000 or so tax savings so that doesn't seem like the right idea."

Do you think there will be less sales tax if you trade in?

In every state I have seen you will pay sales tax on the entire purchase price of the new car. They don't take trade in off the amount used to calculate sales tax. Is there a state where you pay sales tax on the difference?

Yes, Delaware

Re: Private party sale and new car purchase

Anonymous — Thu, 29 Oct 2009 20:28:33 GMT

In most states you pay the sales tax on the difference. Because you already paid sales tax on the whole price of the car you are trading in, you don't pay it twice.

I have bought cars in Pennsylvania, North Carolina, Utah, Nevada and Texas......they all have you pay the sales tax on the difference of your trade in verses the cost of the new car.

Re: Private party sale and new car purchase

clocktick — Fri, 30 Oct 2009 02:56:20 GMT

I bought 2 private party vehicles when there were liens on them. In both cases I physcially went with the seller to their bank while they paid off the car with my money. It can be done.

Re: Private party sale and new car purchase

daisyduke — Fri, 30 Oct 2009 13:10:45 GMT

Hey Clocktick,

I just learned last night this can be done, that you can buy a car with a lien on it.... I had no idea until a friend of mine said the best deal for me on a car would be to try to find someone who can't make the payments.... struggling to pay...bought a car they cannot afford...

Re: Private party sale and new car purchase

Zahnrosen — Fri, 30 Oct 2009 19:34:55 GMT

Could this be done with Capital One Auto Finance as the lienholder? Do they have a local office I could do the sale at?

Re: Private party sale and new car purchase

clocktick — Sat, 31 Oct 2009 14:43:57 GMT

I'm pretty sure you can do this over the phone and they'll take care of the paperwork and anything else. I'd definitely give them a call beforehand.

Re: Private party sale and new car purchase

clocktick — Sat, 31 Oct 2009 14:51:26 GMT

@daisyduke wrote:
Hey Clocktick,
I just learned last night this can be done, that you can buy a car with a lien on it.... I had no idea until a friend of mine said the best deal for me on a car would be to try to find someone who can't make the payments.... struggling to pay...bought a car they cannot afford...

I read about these people on Craigslist - people wanting to take over other's payments or vice versa. I don't know too much about it. I'd imagine there would be a credit check and it's almost like a refinance with a name change? I really don't know. I'm wondering how one would get a good deal of doing this as well. More than likely the person who can't keep up with their payments owe more than the car's actually worth. It would be worth looking into if it would really benefit you, the buyer.

Re: Private party sale and new car purchase

daisyduke — Sat, 31 Oct 2009 14:58:52 GMT

thanks clocktick, that idea lasted about twenty seconds. i plan to buy from a reputable dealer and call it a day. I can't deal with craigslist. too scary too many unknowns. if people cant make their payments, they probably can't maintain properly either.

Re: Private party sale and new car purchase

Zahnrosen — Sun, 01 Nov 2009 13:44:34 GMT

@daisyduke wrote:
thanks clocktick, that idea lasted about twenty seconds. i plan to buy from a reputable dealer and call it a day. I can't deal with craigslist. too scary too many unknowns. if people cant make their payments, they probably can't maintain properly either.
I think your missing the point. I'm interested in selling this car but it has nothing to do with not being able to make the payments. I'm buying a newer, nicer car. So, the car has been well maintained and I've taken good care of it. So, I'm sure there are some sellers who'd want you to assume the payments on something they can't afford but thats not me.

Re: Private party sale and new car purchase

daisyduke — Sun, 01 Nov 2009 17:42:40 GMT

Zahn,

No, I'm sorry for this. the question was not directed at your situation. I was asking a friend of mine if i could buy a vehicle that had a loan on it - so i posted the answer is yes, I don't know how but yes it can be done... I should not have hi jacked your post...because I was stating that my friend said I SHOULD buy a car from someone that is in over their head with the payments and that would be a good deal. I"m sorry about the misunderstanding. There were seperate issues altogether....