Zombiebrew

Hello everyone! I have found that while i do love my Mustang it's not condusive to family life. So i need to sell it.....so i can buy i bigger classic car!!!! I'm thinking 65-67 Galaxy, a Chevelle, or tri-five chevy.

But my question is....if i still owe on the car can i trade it and then just continue to pay the loan. So it would be like transfering the loan to the new car?

UberDuper

I would think trading it in on a classic would be difficult. You'd have to find a classic dealer willing to do it.
If you're going private sale, you're going to have to sell the mustang and pay off the loan in order to transfer the title.
I also assume that getting a loan for a classic would be difficult.

bakerjd

When you trade in the vehicle, depending on how much you owe vs the value of the car the dealer will handle it differently. If you owe more, they will add the balance left after the trade in value to your future loan. If it's less, obviously they pay the loan off and put the extra amount towards the vehicle. Depends on where you stand vs what they offer.

Zombiebrew

Thank you for the responses. But i'm not looking to trade it in at a dealership. I'm looking to trade to a private party. I dont' think they have the same flexibility as a dealership....so i might be stuck until i pay it off or sell? TRading seems to not work unless i can get cash on top to pay off the rest of the car.

fedfireman

Since I literally JUST did a private party trade with a vehicle I still owed on for the Mustang I am driving now, I will chime in.

Talk to your bank, the only stipulation is that you can finance the new vehicle for the amount of your current pay off. If you owe 10k and you try to finance a car that is only worth 5k you will have to come up with the extra cash. If you owe 10k and trade for a car that is financable for 10k+ you're good.

You will need to explain to them what it is exactly that you are trying to do but they can drop your current loan off your debt to income ratio and finance the new vehicle at which point you pay off the current loan and just pay on the new one.

Essentially it is a refinance loan with a change of collateral.

There is no way they will let you sell without paying off the loan though.

fedfireman

just throw a couple commas in there if you intend to read that post

Zombiebrew

wow that's great info!!! I really appreciate it. I'm going to give USAA a call!

fedfireman

No problem man, I have done this a few times before. It is different bank to bank but they should have no problem doing it for you.

Rohan

The only thing is... classic cars require special financing. They usually need appraisals done and the interest is a lot higher. I tried doing just a pre-approval check for a 68 Camaro but when we went to write the VIN on the pre-approval, we found that it was much shorter than todays VINs. USAA was who I tried first. Ended up just saying the heck with it. It was too much trouble.

-Rohan