To everyone smarter than me, and what a long list that is!:
Just throwing ideas around in my head. I drive a 2006 Sierra crew cab 4x4 1/2 ton in above average condition with a LOT of work done very recently.
For arguments' sake I'll say it's worth $5,000. If I had to use that $5,000 to purchase its replacement, is there a somewhat simple approach to doing this?
I have this mini-fantasy of pulling into a reputable pre-owned car lot and trading it even for the replacement (in this case, an manual hatchback with a ~$5,000 price tag).
Do places even do this sort of thing?
TLDR: How does one buy another vehicle if you need the money from the first to buy it?
Answer to first question: Mazdaspeed 3/Civic Si ? If no hatchback, TSX manual.
Second question: Sell car. Rent for week, buy new car.
Thank you very much for the answer!
I have several cars I'm considering. I'm not up in the air on that part of the equation. The Koreans, Japanese and a couple domestics are on the list.
Im mainly focused on the execution.
I do credit union unsecured loan for new daily. Pay off with current dailsale. Accept %10 fee
Unless you're trading down or have something super desirable, I would be very surprised if a dealer offered you a straight swap.
I think you'd be better off selling the truck first.
ebonyandivory said:
Im mainly focused on the execution.
sell truck first. Get highest $$ in pocket.
Going through this right now.
150$ a week or so to rent something with insurance. Sold cars privately and buying privately.
"reputable pre-owned car lot"
does such a thing even exist?
If you value the truck at $5k, the dealer will maybe only give you $3500. Conversely, If they are willing to give you 5, they'll then try to sell it for 7, which means you could realistically accept 6 in a private sale and be way ahead.
I’m hoping to make a similar “swap” in the near future. From what I understand, most used car dealers accept major credit cards. My plan is to sign up for a new “rewards” credit card with 0% APR for 12-18 months and buy the new car with that. Make minimum payments for a month or three until I sell the current car, then pay off the card.
In theory I should be able to get 1-2% cash back on my $5-7k purchase and pay no interest to anyone. Cash back will pay for a good chunk of the registration fees on the new ride.
Edit: I also used a Lendingclub peer-to-peer loan several years ago to simultaneously consolidate old credit card debt and buy a cheap boring dd to get me through the 3 year loan term. That all worked out quite well, and my credit is all turned around now. Lendingclub was actually willing to give me a loan for the ~$14k I needed, unlike every single banking institution I talked to who wouldn't loan me more than ~$5k unsecured. If this route appeals to you send me a DM, if you take out a loan on my referral I get $100 haha
Is your credit score good enough to get a car loan? Even if just briefly?
If yes, reach out to Pentagon Federal Credit Union (PenFed) They do a ton of car loans and not just to Gov't Workers. Everyone qualifies to join. I had a loan form them.
Many banks have rules for car lending like the car has to be less than 8 years old and has to have less than 100k miles. PenFed does not nave these rules which makes it easy to borrow on an older car.
PenFed also has a sort of "blank check" offer too. In summary, as an example, they will run your credit and say you qualify for up to $15k and send you a blank check. You then go shopping and if you write that check for $7.500 then that is what you are borrowing. The rates are good too. Right now, they are 3.99% for a 3 year car loan.
Like others have said, take out the loan to buy then sell your truck and pay off the loan. If that takes just a couple of months then you will pay nearly no interest.
Anyone wanna buy my daily driver excursion so I can buy an Escalade and put some money into it? Lol
I did this a few months back. Sold a Mazdaspeed3, bought a Boxster and put the difference in the bank. Net budget impact? $0. The wife was happy about that.
I commute on a motorcycle and I don't have kids so this was fairly painless. I think it took a month or so to find the Boxster.
I sold first because I didn't really know what my car was worth and I didn't want to buy something else and not get what I wanted for the old car.
P3PPY
Reader
12/14/19 8:23 p.m.
I take it borrowing from family/friend is out of the question? Do you live near any GRMers?
turo.com is best price for rental I’ve seen if going that route
In reply to P3PPY :
Definitely out of the question. I'm going to get the transmission fixed and start putting out feelers for what I can get for it. Then make a plan.
Maybe renting could be an option for me thanks!
It never hurts to run your info by Carvana/Vroom and/or drop it by CarMax for a few minutes. That gives you a starting point where, if you suddenly found a great deal you could just get $X,XXX in a day to do the deal or list it above $X,XXX and see what happens.
I do that with all my vehicles, we actually used the Caravana offer against another dealer to get them to up our trade in. Obviously you save in taxes (at least in FL) if you trade in to where you buy, so factor that in as well.
In reply to CobraSpdRH :
I did just that and got an offer of less than 1/2 of what similar trucks are selling for in my area.
I wasn't very pleased with that!
John Welsh said:
Is your credit score good enough to get a car loan? Even if just briefly?
If yes, reach out to Pentagon Federal Credit Union (PenFed) They do a ton of car loans and not just to Gov't Workers. Everyone qualifies to join. I had a loan form them.
Many banks have rules for car lending like the car has to be less than 8 years old and has to have less than 100k miles. PenFed does not nave these rules which makes it easy to borrow on an older car.
PenFed also has a sort of "blank check" offer too. In summary, as an example, they will run your credit and say you qualify for up to $15k and send you a blank check. You then go shopping and if you write that check for $7.500 then that is what you are borrowing. The rates are good too. Right now, they are 3.99% for a 3 year car loan.
Like others have said, take out the loan to buy then sell your truck and pay off the loan. If that takes just a couple of months then you will pay nearly no interest.
I'm bringing this back up to the top for an update...
We will probably be replacing my wife's car sometime soon. I have a loan on my Prius with PenFed and it has been too easy. Just this past month I made the last payment on my 3 yr loan. Given how easy it has been, just today I called PenFed to see about a loan for the wife's purchase.
I asked PenFedif the could prequalify me for a $20k loan. Just a few questions on the phone and immediately I got back an answer of yes. They are sending out a blank check. The check is good for 30 days. If I do not use the check then I have borrowed nothing. If I need another check, say 31 days from now, then just contact them and they will send another. Current rates are 3.49% for new and 4.25% for used
In reply to John Welsh :
This update fits in well with my 2nd Generation Hyundai Accent thread!
ebonyandivory said:
In reply to John Welsh :
This update fits in well with my 2nd Generation Hyundai Accent thread!
So Hyundai is replacing the truck?
In reply to mr2s2000elise :
You really expect me to decide without changing my mind another 38 times and waffling between FWD, 4cyl, light, tossable manual and 4wd, auto, V8 gas hog?
But seriously I have a problem making car decisions...
In reply to ebonyandivory :
I have a problem with too many cars, and too many I buy and sell a year. Enough that the state of CA made me get a dealer license 9 years ago. However, I don't have a problem making decisions. 
In reply to mr2s2000elise :
Does just selling too any make you a dealer in CA? It doesn't work that way here is Ohio. Here there seems to be limits on how many you can sell w/o the state strying to come after you for taxes on profits of the sale of the cars but this does not get you "dealer only" privilages.
