Thread: Getting Financing With A Trade

Can you get your own financing with a trade in. What I mean is can you go through a credit union or bank but have a trade or do you have to go to the dealership for that?

thanks

or can you get preapproved for so much and go to the dealership and do the trade-in. If your upside down on the trade can you put it in the loan?

I'm a little confused by the wording, but what I think you are asking is the following:

If I am upside down on my current car, and I wish to buy a new car and trade in my current car, can I obtain financing on my own to cover the cost of the new car plus what the remaining balance on my old loan minus the trade in?

If this is the question, then here is my answer.
I did this through my credit union a few years ago. First I applied for a loan, when asked for the dollar amount, I told them I wasn't sure exactly, but wanted pre-approval for up to 26k before I went to shopping for the car. I was given the pre-approval. I found my new car at the dealership. The dealership drew up all the paperwork, including my trade in amount (around 7500). So I owed the dealership a little over 10k. Then I took the paperwork to the credit union who cut two checks. One check to pay off the old loanabout 9k, and one to the dealer for what I owed them. So my new loan was for a little over 20k.

Yes. the dealership just wants the net amount (new car - tradein).

they'll try to finance you themselves because they make money off the loan too. You are doing the right thing going to a bank or credit union first, you'll get better rates and you can shop worry free with the financing already out of the way.

thank you

That was what I wanted to know. Can you tell me what scores you had to get that loan offer.

I wish I could tell you my scores from back then, but that was about 4 years ago - much before I before I had any clue about credit scores. I don't even remember the iterest rate I had.