Loan to pay off old car while financing a new one?

[parkman]

I'm in a bit of a pickle: DW and I are looking to get a new car, however, we owe about 5,500 on our current car. I've talked to the folks at the dealership, and they said that they wouldn't be able to "roll over" the current loan into the new one.

Would I be able to (somewhere else, obviously) get an auto loan for the amount of the new car plus the $5,500 that we owe on the current one so we only have 1 payment?

[Remember0]

Depends on a couple things.

1) What car do you want to buy? That is year, make, model, and trim.

2) Currently what are the aggregate minimum payments shown across all your credit cards on your last statement(s) even if you pay in full every month?

3) FICO score? Which bureau?

4) Do you have another current auto loan other than the one you want to trade?

5) What car are we talking about trading, exactly and miles + condition?

[parkman]

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@Remember0 wrote:

Depends on a couple things.

1) What car do you want to buy? That is year, make, model, and trim.

2) Currently what are the aggregate minimum payments shown across all your credit cards on your last statement(s) even if you pay in full every month?

3) FICO score? Which bureau?

4) Do you have another current auto loan other than the one you want to trade?

5) What car are we talking about trading, exactly and miles + condition?

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And therein lies the problem: I'm not looking to trade in the current vehicle I have, I'm just looking to consolidate the payments between the current vehicle and the new one.

To answer your questions:

1) It's a 2014 Camry SE, dealer price 24,500, internet guy is offering me 21,500.

2) Minimum payments on card with balance is $35, but I have quite a few cards with 0 balance that I don't use, so if you factor in those, it's around 300. But as I said, I only have 1 card that I actually use and carry a balance on. 

3) EQ is 776.  The other two have baddies, so TU is 670 and EX is 690. 

4) No other auto loans. 

5) Not looking to trade. 

[Remember0]

Ah ha, I see what's going on now.

1) 2014 or 2014.5 (yes, there is a huge difference mainly IIHS safety ratings. Check out the changes they made on the .5 version for Small Overlap Tests on iihs.com. Also .5 versions have less incentives)? And what's that 21.5k include? If it's 21.5k OTD, I'm impressed! 21.5k + ttl + doc is an okay deal too. To get better you may have to drive far depending what part of the country you're in.

2) If you don't use a card, the monthly statement for that will say min payment due : 0 or please don't pay or something like that. Take a look if you don't believe me. Regardless we look at the 35 figure. Also you may want to use those cards at least once per 3-6 months, so the issuer doesn't close for inactivity. Just pay it off AS SOON AS the small purchase posts. That way the statement will still say 0 bal and no min payment due.

Now onto the bigger problem. If I get you what you're asking to do is essentially combine onto one loan 2 cars? VERY few lenders will do that. Heck, I'm not sure if its even legal in all states. Your best chance maybe to ask small banks and CUs in your area. Typically I've never heard of a bigger lender doing something like that. You could try to call and ask DCU, but I doubt they would.

Why do you want to do this anyways? Seems not smart to me. If you can't afford 1 cars payment, with this setup, they'll take both cars at the same time from you. Not saying you'll default, just seems like it's a worse thing for a borrower. I'm guessing your income can't support two simultaneous payments, but one payment of a combined loan is no problems?

[parkman]

Thanks for your response!

So I was basically able to put everything to bed today between the dealer and financing. 

The internet price at 1 dealership was 21,500 before TTL. This morning I git an offer from another dealership for 19,900 before TTL, so I jumped on that in a heartbeat! I was also informed by the salesman that it is indeed a 2014.5 model, so I really feel like I got away with a steal!

As far as the loan, I went with a local CU and got 2.4% at 59 months (60+ would have been 2.9, I know, weird).

The person I spoke with said she may be able to give me a loan up to 115% of the KBB value, and I could use the difference to pay off the existing loan. I was approved for 28,000, if that matters. If not, we can definitely handle the two car payments, but for the sake of simplicity, my wife wanted one. You are right, however, it is smart in the long run to just pay off the other loan. We only have 15 months left on it, so...

We closed the deal at the dealership late in the afternoon, so we weren't able to get everything finalized with the CU, but I already applied and was approved, so it's just a matter of going in and signing the docs. Other than that I have a new Camry sitting in the driveway!

[Remember0]

Woo-hoo! Glad you got that worked. Make sure the numbers on the contract you will sign are the same as what you negotiated and by the way, 2014.5 will appear right on your window sticker! If 19.9+ttl for a .5 SE, you really did get a steal. Congrats! I'm guessing shopping at the end of the month in March really helped (end of quarter for many dealers + end of month).

Out of curiosity, would you share the CU you worked with (you can PM me if you don't want to publicly post it)? I'll just keep it in mind if a future poster has the same issue.

Congrats again!

EDIT: Also don't forget to say no/shop around dealer extras! GAP, for example, is usually much cheaper through your auto insurance (I pay $1/month, not a typo, 1 buck, vs. 300 at the dealer).

[parkman]

It was through CBCFCU, although it's only open to Ventura County residents. They offer GAP for $250, not sure if I'll take it or not. 

[Remember0]

Ask your car insurance co how much it would cost to add gap to the car you just bought. I'm guessing they'll say $1-$2/month. And you only need to keep it probably for ~36 months. It's a no brainer depending on what your car insr co says. Your car will be worth more than the loan in 36 months or so.

Also for warranties know that you can buy the same one from any Toyota dealership online (midwest toyota is popular). Though admittedly it can't be financed if you buy it online after car, but lookup & use their price as a bargaining tool.

[parkman]

Thanks for the advice. Yeah I basically turned down all the warranties. I bought one for the Honda I have and haven't needed to use it once, so I didn't get one for this car. 

[Remember0]

Smart guy! That's what I always do too! For small things like car repairing, self-insuring is the best way to go if you can withstand temporary expense shocks in your budget imo.