How can I switch cars when I have a loan on one?
I have a car loan on a ‘98 Suzuki Esteem, and I recently inherited a ‘98 Dodge Caravan from my Mom. I would love to keep the van. It’s a nicer car with only 22,000 on it, but the Esteem is not worth the amount of the loan that is left, so if I sell it, it won’t be enough to pay the loan off. I’d love to find a way to keep making same payments, but have the bank use the van (which is worth more) as the collateral instead of the Esteem, but they don’t seem to understand what I’m asking and they talk to me like I’m trying to get out of my responsibility for paying off the loan, which I’m not. Is there any way to do this?
13. October 2008 at 8:19 pm :
To be able to sell the Suzuki, you would still need to come up with the balance of the loan before the lender will release the lien on the title. This is the only way they can be certain that you will keep making your payments.
You may be able to work out a deal with your bank to make a personal loan, using the Caravan as collateral. But as you said, your bank does not understand. You could try another bank for the loan.
14. October 2008 at 10:31 am :
Just take out an auto loan on the van and pay off the Esteem. Sell it. Take the money from the sale and pay it on the loan on the van.