Car trade in knowledge possesors

[royalfan5]

I plan in trading vehicles this spring, and since I don't have any experience trading in cars that still have value left, I was just curious as to this question. Do you generally get better trade in value when you trade within the same company? I.E, I have a Chevy, will I get a better deal if I trade for another G.M. product or does it matter? Would a Mopar dealer give a lesser value? TIA

[MamaMia]

I always pass my cars down to loved ones, but I have heard that its better to sell your vehicle because you wont get as much on a trade in.

[Harry Beanbag]

It's been my experience it doesn't matter where you trade it in, they all go by the book value. A lot of the time they sell their trade-ins at auctions, so they don't care what it is anyway, especially if it's an older model.

Oh, and if they're planning on giving you what you want (or more) for your trade in, odds are you're getting bent over on the new vehicle.

[yermom]

i'd either sell beforehand or negotiate the price of the car before doing the trade-in

they will also rob you on their financing, i'd have a loan set up before going to get the car

[Harry Beanbag]

i'd either sell beforehand or negotiate the price of the car before doing the trade-in

they will also rob you on their financing, i'd have a loan set up before going to get the car


Definitely.

[Frozen Sooner]

yermom speaks the truth.

Here's the Mike Rich Guide to Buying a Car:

1. Go and get prequalified from your bank or credit union. That way you know for sure what interest rate, term, and payment you qualify for.

2. Once you have the loan squared away, sell your vehicle privately. You'll get much more for it than you'll get on trade-in.

3. Once you have the car sold, go find the car you want. Sure, let the dealership try to get you financed-but always remember that their F&I department is a profit center for them. If they tell you Bank A approved you at 7%, what they mean is that Bank A approved you at 5% but told them they'd pay more for the contract if they wrote it at 7%. If they offer you a warranty or GAP, see if you can buy it from your insurance agent or financial institution instead. Do not, under ANY circumstance, purchase credit life or disability from the dealership. Buy it from your financial institution if it's something that you want-and it's something that CAN be worthwhile for the right person.

[royalfan5]

yermom speaks the truth.

Here's the Mike Rich Guide to Buying a Car:

1. Go and get prequalified from your bank or credit union. That way you know for sure what interest rate, term, and payment you qualify for.

2. Once you have the loan squared away, sell your vehicle privately. You'll get much more for it than you'll get on trade-in.

3. Once you have the car sold, go find the car you want. Sure, let the dealership try to get you financed-but always remember that their F&I department is a profit center for them. If they tell you Bank A approved you at 7%, what they mean is that Bank A approved you at 5% but told them they'd pay more for the contract if they wrote it at 7%. If they offer you a warranty or GAP, see if you can buy it from your insurance agent or financial institution instead. Do not, under ANY circumstance, purchase credit life or disability from the dealership. Buy it from your financial institution if it's something that you want-and it's something that CAN be worthwhile for the right person.
Since your in this thread now, I have an additional question for you. If you are a banker, how much more complicated does your personal banking transactions become. I'm assuming that as a loan officer, I can't just loan myself money, and that I will probably have to jump through additional hoops of some sort.

[Frozen Sooner]

Heh. No, you can't underwrite your own loans. That'll get you fired pretty quickly.

Most institutions have some sort of policy that only a VP can approve any loan for an employee or something. Like for me, I have to run all my loans through the VP of Lending for approval. Anyone on the executive management level has to have their loans approved by the board of directors.

For everyday stuff, though, it's the same as anyone else. The tellers just can't see your balances.

[royalfan5]

Heh. No, you can't underwrite your own loans. That'll get you fired pretty quickly.

Most institutions have some sort of policy that only a VP can approve any loan for an employee or something. Like for me, I have to run all my loans through the VP of Lending for approval. Anyone on the executive management level has to have their loans approved by the board of directors.

For everyday stuff, though, it's the same as anyone else. The tellers just can't see your balances.
So what happens when I'm President of my own bank,(and I will be) and own most of it(which I will, community banks can be had pretty cheap in the Midwest) can I loan myself cash then?

[Frozen Sooner]

No. You'll have to go through the board of directors.

The FDIC takes a dim view of bank presidents acting like their banks are their own private piggy banks.

[royalfan5]

No. You'll have to go through the board of directors.

The FDIC takes a dim view of bank presidents acting like their banks are their own private piggy banks.
Figures the FDIC would be fun killers.

[soonerboomer93]

yes, but you get to pick your "board of directors"

[yermom]

dude, you can own a bank?

how do i get in on this?

[Hamhock]

save your money and pay cash for a car.

dave ramsey says.

[royalfan5]

Find a for sale one. In Nebraska, you could get a small bank for around 150,000.

[sooneron]

save your money and pay cash for a car.

dave ramsey says.
concur

Financing items < 50k is for people that need credit scores or people that can't afford it.

Buy smart and within your price range.

[Frozen Sooner]

Well, yeah. But royalfan5 is just out of college. He ain't paying cash for a car anytime soon.

[yermom]

kinda what i was thinking. if you don't already have a reliable car, you are going to kill yourself with repairs on your crappy car before you can save up for a new one

[Mjcpr]

concur

Financing items < 50k is for people that need credit scores or people that can't afford it.

Buy smart and within your price range.

You don't, by chance, own a Yukon do you?

[colleyvillesooner]

kinda what i was thinking. if you don't already have a reliable car, you are going to kill yourself with repairs on your crappy car before you can save up for a new one

:mad:

[Sooner_Bob]

Financing items < 50k is a neccessity for the vast majority of people. Unless of course both people work and make close to or above 6 figures.

Having said that, I wish I was patient enough to be able to save and pay cash for something that costs about $50k.

[RacerX]

You don't, by chance, own a Yukon do you?

There's a least two yukon owners in this thread.

[Mjcpr]

Which one of them is Bruce?

[MamaMia]

Mr. Rich, you are always so nice to give us information on things. I have a simple question I would like to ask if I may.

Back in 2000 or so, the former president of my bank, who I absolutely adored, gave me what his secretary referred to as "a blank check" to buy my little SUV. Is that done very often? I ask because, I was missing our former bank president, who's in Norman now, but I found out that the new guy was a Sooner so I figured I'd give him a chance. As it turns out hes kind of grown on me actually. I've gotten to where I like him and I pretty much trust him too, which is a good thing, since I'm not real knowledgeable with all the in and outs of banking matters. :O

I feel bad though, because for some reason, I think I totally confused the poor fellow a year or so ago when it was finally time for my husband to get a new truck. After my husband went to the bank, he came home for lunch and said that the new bank president wanted 20% for a down payment on this Titan he was wanting! That just didn't make any sense to me, so after he went back to work, I picked up the phone and gave this, then new, banker a call. I told him that when I got my Nissan, the former president gave me a blank check. I explained that I felt it was silly for him to expect us to give him 20% of the price for a new truck since first, we didn't know how much the truck was going to cost and then reminded him of the fact that he has all of our money right there in his bank anyway to do with what he pleases. He started talking about transferring this and moving this, that and the other from here and there. I told him that buying a pick up truck should not be all that complicated, and like the nice fellow, that I learned that day he was, he totally understood my point and said he would take care of everything and had me come over to the bank, which is right down the street and across from my church. Once I got there, he gave me one of those blank checks I had told him about, and his home phone number. :)

When I gave my husband the good news he was so happy. He smiled and said that he had spoken with the banker that afternoon as well and appreciated my help, however, I still can not for the life of me understand why he and my family always get a chuckle out of our conversation that day; another example of being grateful I have someone I can trust. I always make him and his family a nice basket for Christmas.

[Hamhock]

you can buy a reliable car for $1,500.

then make car payments to yourself. pay cash for a car you want.

borrowing $20k each for two cars is not a necessity. it is mostly done because of pride.

[Frozen Sooner]

Mr. Rich, you are always so nice to give us information on things. I have a simple question I would like to ask if I may.

Back in 2000 or so, the former president of my bank, who I absolutely adored, gave me what his secretary referred to as "a blank check" to buy my little SUV. Is that done very often? I ask because, I was missing our former bank president, who's in Norman now, but I found out that the new guy was a Sooner so I figured I'd give him a chance. As it turns out hes kind of grown on me actually. I've gotten to where I like him and I pretty much trust him too, which is a good thing, since I'm not real knowledgeable with all the in and outs of banking matters. :O

I feel bad though, because for some reason, I think I totally confused the poor fellow a year or so ago when it was finally time for my husband to get a new truck. After my husband went to the bank, he came home for lunch and said that the new bank president wanted 20% for a down payment on this Titan he was wanting! That just didn't make any sense to me, so after he went back to work, I picked up the phone and gave this, then new, banker a call. I told him that when I got my Nissan, the former president gave me a blank check. I explained that I felt it was silly for him to expect us to give him 20% of the price for a new truck since first, we didn't know how much the truck was going to cost and then reminded him of the fact that he has all of our money right there in his bank anyway to do with what he pleases. He started talking about transferring this and moving this, that and the other from here and there. I told him that buying a pick up truck should not be all that complicated, and like the nice fellow, that I learned that day he was, he totally understood my point and said he would take care of everything and had me come over to the bank, which is right down the street and across from my church. Once I got there, he gave me one of those blank checks I had told him about, and his home phone number. :)

When I gave my husband the good news he was so happy. He smiled and said that he had spoken with the banker that afternoon as well and appreciated my help, however, I still can not for the life of me understand why he and my family always get a chuckle out of our conversation that day; another example of being grateful I have someone I can trust. I always make him and his family a nice basket for Christmas.

Is this what's known as "killing with kindness?" :D

No, a blank check loan is pretty rare. I'm guessing your bank has an open-ended credit agreement in place with you. Based on what I'm guessing your income and assets are (successful professional, bank manager gives you his home number) you're probably one of those "bend over backwards for 'em" borrowers.

And 20% down on a new truck for people with what I can only assume is excellent credit and a great depository relationship with all kinds of income is silly. I agree with you.

[MamaMia]

dp

[MamaMia]

Is this what's known as "killing with kindness?" :D

No, a blank check loan is pretty rare. I'm guessing your bank has an open-ended credit agreement in place with you. Based on what I'm guessing your income and assets are (successful professional, bank manager gives you his home number) you're probably one of those "bend over backwards for 'em" borrowers.

And 20% down on a new truck for people with what I can only assume is excellent credit and a great depository relationship with all kinds of income is silly. I agree with you.
I just read your answer to my husband. He said to tell you that the bank has more of a she means well so do everyone a favor and just give her what she wants policy :O

I really do like my bank president. Coincidently enough though, I just heard yesterday that he may be going from First American to the new Bank 7 they're building. I might have to break in a new president. :P