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Contingent on model,condition, and term of final loan.
Here's a perfect example of good for me, bad for you.
4 yr loan.
12 payments left.
Car in mechanical great shape
Body - no accidents or mars.
I take over the 12 payments.
I just got a car for 75% off value. Well actually probably 55%.since it's clear that dealers make profits, and the car loses value with age.
You walk away with not holding the bag for those 12 payments . You also have no car..hmmm....you tell me. Who gained on this ?
Realistically most folks will ask for a partial cash upfront for the cars base value less the payments due.
BTW I think cash is king when acquiring a product that is inevitablely a loss driving off the lot.
I'm considering another vehicle to replace my current one. My credit is not great, so I was considering approaching a seller who's offering "take over" payments. Of course I'll find out how much is owed on the car, and try to negotiate a monthly payment plan...
I've never financed a car before in my life - I've always paid cash and my cars were paid in full from the first day! What are the pros and cons of take over payments?
Don't consider another vehicle! Just pay for what you currently have (which would likely help your credit score instead of trying to do other things, which I assume you have been doing?)
I'm considering another vehicle to replace my current one. My credit is not great, so I was considering approaching a seller who's offering "take over" payments. Of course I'll find out how much is owed on the car, and try to negotiate a monthly payment plan...
I've never financed a car before in my life - I've always paid cash and my cars were paid in full from the first day! What are the pros and cons of take over payments?
depends...
I had sold a vehicle (was on monthly payments with manufacturer, Mercedes in my case) and the guy who took over had made arrangements with the same lender.
Once I got the OK from lender that all is done (that loan was paid), I took the vehicle to buyer and gave him the keys. I also had a bill of sale we made up on which we specify he will take over the vehicle (with vehicle info and payout listed).
No issues for me or him, this was about 4 years ago and guy had only seen the vehicle on transaction day (different city). Super happy both of us!
I've noticed that some newer cars on the FB trading sites that say "take over my payments" are often priced higher than just buying a comparable model with your own payments.
The reason is that the sellers are upside down in their loan payments, either because they rolled a previous loan into it or depreciation or both.
I'm considering another vehicle to replace my current one. My credit is not great, so I was considering approaching a seller who's offering "take over" payments. Of course I'll find out how much is owed on the car, and try to negotiate a monthly payment plan...
I've never financed a car before in my life - I've always paid cash and my cars were paid in full from the first day! What are the pros and cons of take over payments?
You won't get approved to assume the payments. Bank will scrutinize you more because its a used car
I've noticed that some newer cars on the FB trading sites that say "take over my payments" are often priced higher than just buying a comparable model with your own payments.
The reason is that the sellers are upside down in their loan payments, either because they rolled a previous loan into it or depreciation or both.
Don't do it!
Good point, and you just jogged my memory with that comment. About 40 years ago, I was considering buying a motorcycle, "just for grins". About the same time, I was shooting the breeze with my supervisor at work, and he mentioned that his son-in-law (who he didn't particularly care for) had a bike for sale. The SIL wanted a Harley, but didn't have the necessary cash, at the time, so he settled for a 750 Suzuki (a formidable bike, in it's own right, back then).
After about a month with the Suzuki, while it was actually a nice bike, he decided to jump into the deep end, and went out and bought a Harley, anyway. Now he had two bikes, and needed to sell the Suzuki, QUICKLY! He was looking for someone to "take over the payments".
I briefly researched the deal, and crunched the numbers, finding that if I had "taken over his payments", legally and up front, of course, I would have spent around $2-300 less than if I had bought one myself, fresh from the dealer. In other words, not enough of a saving, to consider doing it. The SIL must have had bad credit, therefore a high interest rate on his loan, making it unattractive to me.....
I know it sucks but I would bite the bullet and do everything I could to pay extra on the loan until you pay off the negative equity and then trade for what you want.
vehicles specifically. I wont have a payment on anything but my primary mortgage and that is being paid off early. I just hate payment in general.... Hate feeling like I owe someone something.
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