[BeastMode335i]

So if you have a car loan and wanted to trade your car to someone who also has a car loan, do you just switch bank loans, or is it a complicated process?

Thanks..

[ArcticRik]

Originally Posted by BeastMode335i

So if you have a car loan and wanted to trade your car to someone who also has a car loan, do you just switch bank loans, or is it a complicated process?

Thanks..

I would say you each "buy" each other's for whatever is left on the payoff with each other's banks.

So if you have $10k left on yours and so does he, you would go to your bank and get a loan for $10k for his car and he would go to the bank to get a 10k loan for your car... So in the end his loan pays your car off out of your name and now you have to make new payments on his car, vice versa

[robthewrench]

There is no 'swap' because the banks have a lien on each car and as partial owners of the vehicles, they have no interest in a swap, they just want to be paid.

To do this, and get the titles transferred to the new owner's names, you'll need to pay off each car and take a new loan on each car. Two new loans get started, two old loans get closed. Note I'm assuming you both need new loans. If not, it is just two loans getting closed out.

Having a loan on a car is one of the things that drives people to trade their car into a dealer. The dealer will take car of all the paperwork on the old car, set up the loan on the new car, etc... AND make a bunch of money off you in transfer fees built into your newer car purchase.

[BeastMode335i]

Ahh I see.. Well I appreciate the breakdown guys, thanks..

[Dark_Knight_335]

For leases, there are programs a dime a dozen (swapalease comes to mind.)

For financing guys like me, not so sure...

[BeastMode335i]

Yeah I've saw that site before too.. I have a very very low interest loan on my car, and I put the full amount due in an account and just have it auto-deduct every month to help my credit get higher.. But I don't want to pay off my car, only to trade someone who owes on theirs, and then I have to pay off that loan too.. And finding people with paid off 335's to trade is slim lately, I've spoken to like four people on here and they all owe money..

[patents]

It's essentially what has been said. You can't transfer loans. The loans would have to be paid off and new loans would have to be issued (if you do need a loan). Any new loan may or may not have the same terms as the old one. And since it's a private transaction, you will need to have the credit to qualify for an additional loan - the bank will have to assume your existing car will not be sold and paid off, since there is no guarantee the complete deal will go through (e.g. you buy his car but he fails to buy yours).

It's really not as complicated as it sounds. You are both buying new cars, they just happen to be from each other. From your individual perspectives, it's no different than if you were buying cars from other people. It's two separate independent transactions.

You have to decide if you want or need to carry a loan on the new car. If you don't, then just offer to buy the other car for cash, take appropriate measures to make sure the seller pays it off and gives you title, and at the same time hope that he has the cash or gets a loan to buy yours.

If you meet the seller and you are both savvy and serious, it can get get done. You just have to both be on top of the process from both ends. You may end up buying his car then finding out he can't or won't buy yours. Then you have two and he has none.

[floydarogers]

Originally Posted by BeastMode335i

So if you have a car loan and wanted to trade your car to someone who also has a car loan, do you just switch bank loans, or is it a complicated process?

As others have said, it's complicated. If different banks/lenders, the terms and conditions are almost certainly different. Even worse if loans originated in different states.

And I personally probably wouldn't trade with more than 95% of the population, because my credit score is much higher than most people, hence my interest rate is lower: no way I want to trade (example) 2% for 8%.

[AtlasM]

This really isn't complicated. There is no swapping of loans. To give your car with a lien on the title to someone else, your loan needs to be paid in full and the bank will give you a lien release for the title.

It's exactly the same as if each of you bought cars on your own and sold your current car private party, except you're buying cars from each other.

[patents]

Originally Posted by floydarogers

As others have said, it's complicated. If different banks/lenders, the terms and conditions are almost certainly different. Even worse if loans originated in different states.

And I personally probably wouldn't trade with more than 95% of the population, because my credit score is much higher than most people, hence my interest rate is lower: no way I want to trade (example) 2% for 8%.

I've never heard of trading loans (i.e. a bank swapping the person who owes the money). There's a bank out there that may do it, but I would be surprised. "Take over payments" means to get a new loan and pay off the old loan.

[hassmaschine]

This probably wouldn't be too bad to do if you went to the same bank for both transactions, preferrably one of which had the loan on one of the cars.