Hi friends, I am 26 years old and I want a new car. I owe $2000 on my old car. I am giving my old car to my mom. Can I transfer the $2000 to my new car loan without a trade-in? (The car definitely is not worth $2000)My husband thinks I have to trade it in to transfer the balance. Can I transfer an old car loan balance to a new car loan without a trade in? Please let have your great suggestion. Thanks a lot.
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Car buying help
- Thread starter jerryklarke
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Have your mom assume or take care of the remaining balance, then go out and buy your new car. Remember, you're not really giving your old car to your Mom, b/c you still have a remaining balance and it's still registered in your name and your husband's name. Financial institutions tend to allow transferring the remaining balance on vehicles, but that would mean a trade-in. But, if the vehicle is financed by a company or bank that currently finances the car or say your house or business, then they would probably assume the balance of the loan and the balance of the loan on your new car purchase. (That'll be 5% of the purchase price for financial advice, and that can be forwarded to MacRumors: Forums!). Post on the correct forum in the future, thanks.
Some dealers will pay off what you owe on your old car, but they usually want it. However, they do make exceptions. If its payed off, your cost will rise. But your mom will owe nothing, nor would you have to worry about 2 payments. Question would be, are you able to put anything down on the new car?
we just bought my fiance a new car... she still owed money on her last car... we got the dealer to pay off her old car, and use what was left as a trade in, and then let us finance a new car without any money down... basically we picked up a brand new car without increasing our monthly payments... it was awesome.