Hey guys,
I was wondering if some 1 could assist me in explaining this to me.
I am still financing my 2005 STI and was looking to get a new car. I was told that I can get financing on a new car and do a balance transfer on the balance of my car. How does this work exactly?
Thanks in advance

 

Assuming you are trading the car in...
Basically the new car loan is written with the remaining balance of your old car added on.
The dealership/credit union can walk you through it.

 

When I traded in my last car, the dealership took care of everything. You just need to know your payoff amount and the account number. That's assuming you're going through the dealer's finance department though.

 

So if I owe 10k on the car, they dont take care of any of that as a trade in and just move it to the new loan? So if the new loan is for 20k and the balance was 10k, I will be paying a 30k loan? That dont sound right! lol

 

So say you owe 10K on your loan and the dealer gives you a 13k trade in value on your car, you would have 3k applied as a down payment on your new car and vice versa. So say they gave you 7k for your trade, you would have 3k tacked onto your new loan. They will pay off your loan for you, I just went through this on my old STi when I got the X.

 

This is how it works
Trade in value 15k
Old loan 10k
New car value 20k
You finisce 15k+ taxes and fees.

So they take the value of your trade in to payoff your loan and if there is any left over it counts as putting money down.

 

if you owe 10k and the car is worth 15k trade in value, the car your buying is 20k than you loan will be for 15k.......make sense?

if you owe 10k and your car is only worth 5k and the car your buying is 20k than you loan will be for 25k.....make sense?

 

Got it, Thanks guys.