Question re Car trade in payoff by dealer

[payingoffdebt001]

I just bought a new 2012 vehicle from a dealerhip and they agreed to pay off my old car  2009 loan completely.  Is there anything I need to watch for? I'm curious how long this sort of thing takes. Same Finance company for both vehicles.

My old car payment is due July 15th, hopefully they make this transaction by then.  I hope I dont have to budget in this next payment for "just in case".

[Anonymous]

I just did a trade-in yesterday, and asked the dealer the same question. He said that they get the old loan paid off within 10 days. When we got my payoff quote from the old loan company, it was good through 7/22/12, and took into consideration the fact that my payment for July (due 7/27) hadn't been made yet.

Your situation should have been similar, and your payoff quote would have factored in your July payment, so you shouldn't have to worry about it. Any decent dealership that sells new vehicles should be well versed in trade-in loan payoffs, and there shouldn't be any need for concern. Of course, you can still confirm this with the dealership, or give your old lender a call and confirm.

[xiownthisplacex]

What Autumnslight said.

We get a 10 day payoff, because it does take a few days to send the paperwork out and then overnight the check to the leinholder. But you have nothing to worry about. The sales person should get the payoff, show it to you, and have you sign a payoff authorization form. That 10 day payoff will be fine, even if your payment is due tomorrow.

[payingoffdebt001]

Thanks for the replies!   They did show me the payoff sheet and had me sign - I just forgot to ask questions on how long it takes.  And basically I just worry too much! lol

 

[pizzadude]

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@payingoffdebt001 wrote:

I just bought a new 2012 vehicle from a dealerhip and they agreed to pay off my old car  2009 loan completely.  Is there anything I need to watch for? I'm curious how long this sort of thing takes. Same Finance company for both vehicles.

My old car payment is due July 15th, hopefully they make this transaction by then.  I hope I dont have to budget in this next payment for "just in case".

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I'd follow up with the dealer on their timing, but just remember that you are still responsible for making each monthly payment until the payoff amount is received by the creditor.