thread: Car yards and trade in's?

  1. #1
    Registered User

    Dec 2005
    4,840

    Car yards and trade in's?

    Anyone know if instead of trade in a car yard can actually buy your car from you?



    We need a bigger car, we currently have a loan out for our current car. Car yard said they'd give us loan-value trade in so we are even. Except the bank is being difficult for some unknown reason even though we have been exemplary customers paying more than what we have to fortnightly on our repayments. We absolutely need another car and we absolutely cannot afford to buy it on finance without trading in the current car.

  2. #2
    Moderator

    Dec 2006
    Smidgen-ville
    3,736

    Sorry if i am misunderstanding, but if the car yard is offering to trade it in for the value of the loan, then shouldn't your finance company be sweet with this? The car yard is buying it off you. Then you can buy another car and get new finance.
    Hmm, I think I misunderstood your post

  3. #3
    Registered User

    Dec 2005
    4,840

    No your right; that IS how it should work but for some reason the bank is saying it isnt. Even though we've done it before *sigh* Because we dont technically own our car, the bank does. Even though the new car is twice to value of the current loan and the new loan would be for the current loan amount + the extra out of pocket after trade in. They want us to sell our car privately and pay of the loan, then take out a new one. How that is any different I dont know *sigh*

  4. #4
    Registered User

    Jul 2005
    Perth Western Australia
    1,697

    When you trade a car in though, they just take the amount of the trade off the purchase of your new car, so really your new loan with the car yard would be the price of your new car minus the trade value, I don't think they just hand over cash with a trade. So your bank is saying that you wil still have the debt with them, but no car to hold against that debt as the car yard will have your new car as equity against your new loan.
    Can you not talk to your bank about extending the loan you have to cover the extra cost of the new car, rather than using the car yard finance?

  5. #5
    BellyBelly Member

    Oct 2004
    Cairns QLD
    5,471

    Someone is misunderstanding someone there?! I don't understand why the bank would have an issue with the car yard paying out your loan on you current car. We have done that like 4 times over the years. Who is your current lender?

  6. #6
    Registered User

    Jan 2006
    The Hawkesbury
    4,505

    Have you tried going through another bank or credit union and applying for a personal loan to pay out your current loan and get the extra money youll need for the new car?

    Ali is right though, they usually take the trade in amount off the price of the new car, not give you cash. But have a google.. i have seen places around me with signs out saying they buy cars from you.. i think theyre called Cash For Cars?

  7. #7
    BellyBelly Member

    Oct 2004
    Cairns QLD
    5,471

    Are you refinancing with the same lender? maybe thats whY i have never had an issue as I have always been with esanda...