WSC230

I drive a 05 c230 kompressor and is still doing payments for it through my bank. The total price for the car came to around $17k. Im interested in another car now so if i want to trade my car in and do payments for the other car how does this work? The new car im looking at is around $15k and its also at a different dealership. Anyone ever went through this? If yes whats the process? I just want to hear some feedbacks before i go talk to my bank so i'll know what to expect. Thanks!

amdeutsch

For the

Financial FAQ - aka car trading

MTRDVSN

that was pretty funny!!

AdidasC230

if you have no idea how to trade in a car, you probobly shouldnt, because youll get your *** handed, to you, ask your parents or something.

Also if you financed 17 you prob owe 20 and your upside down at least 10. So good luck with that

WSC230

Will this is why im asking to see if anyone on here can shed some light to me on how this will work. I thought thats what these forum are for, to get help from eachother. The loan i borrowed from my bank is exactly how much the car i have right now is for and thats $17,800 total and im paying about $300 a month. I just want to know if i want to trade the car in for one that cost less ($15k) will i have to pay any fee's to the bank since i didnt keep the car i originally got the loan for.

timmynabenz

if you financed 17, you would owe 17. if your car COST 17k you would probably owe more after taxes license, etc.

bottom line though, if you owe 15k on a 05 kompressor, your upside down FOR SURE unless MAYBE its fully loaded and you have like 9k miles lol if your going to trade even for a cheaper car, your gonna have to fork out some cash to pay the difference in what you get for your car and your payoff

WSC230

So say i still owe the current car $14,500 left and the new car im interested in is $16,000. Does this mean i have the pay the bank $1500 back for the difference from $16,000-14,500? Then get a new loan for $16,000? Sorry im confused lol.

timmynabenz

say your car is worth 12,000, you owe 15,000, and the car you want is 16,000.

you will have to fork out $4,000, $3,000 to pay off your car and $1,000 difference

samaritrey

and we wonder why America has so much bad debt. No offense to the op but you should never get a loan if you don't understand it. just my 2cents

ok so kbb says a 05 c230 with 50k is worth about 13k i know kbb sucks but is a easy number to get. if you owe 15k to the bank and want a 16k car. You will sell/trade in your car that will leave you with 13k then you will pay off the bank 15k. Then you will get new loan for the 16k GL man make sure to have the loan officer explain everything to you and if you have a friend that knows anything about banking or just a friend tag along to make sure everything adds up.

btw what are you getting?

WSC230

I understand how the loan process works, i just didnt know what the process is if i was to find a new car that i want and i want to trade the current car in for it. I understand now after reading what timmynabenz wrote.

WSC230

makes more sense now. thanks

samaritrey

Ok well then GL what are you getting?

LILBENZ230

Wrong. There is no way this car is financed at 0% interest. Nick was right because he has accounted for finance charges. You will get out of some with an early pay off but not all of them.

LILBENZ230

How many payments have you made on the C230?

way2evil

There is also no way he bought the car for 17 and financed 100% of it.

LILBENZ230

Why is that? It's done every day. I know some places will refuse to finance that much over what a car is worth but some places will. I know someone who has a 2006 Accord I4 sedan with a $760/mo payment because they financed over $10k on top of the actual price of the car.

I know what you're saying and yes that's how it is mostly but not always. It is VERY possible that he financed the entire $17k.

way2evil

If the vehicle cost 17k and he financed 17k the loan did not come from a real bank unless it was some sort of shady balloon payment loan or something. I have an 850 credit score and no bank would give me a loan for the full amount of a car.

LILBENZ230

Well you should shop around because you should not have a problem. The girl with the Accord was a credit union, not a bank and not a balloon payment. I could absolutely finance $17k on an 05 C230 at my credit union with very little trouble.

I don't deal with banks, period.

DrgnflyZ28

An 850 credit score is great but the "auto FICO" score is a whole other animal. You not being able to acquire a loan without cash down might stem from the financial institution you are attempting to get a loan from. Another factor might be the type of vehicle you purchase (based on your sig pic). For security reasons, they usually want to see a decent lump of cash to invest. If you end up defaulting on the loan, they want to make sure they end up with some ROI from you when they take the car. Then when they resale or auction it off and take a possible loss, it's been somewhat covered by the downpayment. Of course they might come after you for the difference as well. A win-win for the auto finance industry.

I financed 100% of my Benz... not one red cent taken out of pocket based on my car payment/purchase history... it wasn't a planned purchase, more like a "holy crap I love this car, gotta have it".

WSC230

I put a $500 down on the car and then got a loan for exactly how much the car cost total including tax and paper work which came out to $17,800. The car was listed at like $16,999 or something.

WSC230

I've had the car for about a year now and have been making all my payments on time so the loan i borrowed which is $17,800 is down to like $14,000.

WSC230

Its a 03 c32 with about 80k miles and the price is $15k. I dont know if i should just stick to the current car (05 c230 kompressor) or should i pay the difference and get the c32 instead?

tommy

I am guessing that money is tight for you. If it is, I would give serious consideration to not doing this swap. Your newer car that has probably not been beat up as much as the C32 is also going to be on average much more reliable than a 2003.

Unless you have a couple of grand at your disposal as a rainy day fund on whatever breakdowns the C32 will have, and can replenish it easily, it's not a smart move, financially, even though I agree that it would be a much more fun car to drive on a daily basis.

WSC230

Thats my main concern since the 05 c230 kompressor i drive now only have 45k miles compare to the 03 c32 at 85k miles. I also just had the front brakes done so as far as i know the 05 c230 kompressor doesnt have any problems right now. Im worried that if i go ahead with this and trade the kompressor in for the c32 that i might have more problems later down the road since the c32 is older. Does these cars have a lot of issues as they aged (c32)?

DrgnflyZ28

+1, good advice!

Pay off the car (keeping the miles as low as possible) and use it as a trade in (or sell it outright for $) for a newer used C63 later on
Just an opinion mind you...