How do I make sure the dealer pays off my trade

[Belbein]

I'm embarrassed to be asking this question, but I've never, ever traded in a vehicle before. I'm trading in an AS on a new, larger AS. I'm trading to the dealer, and we are "upside down" in the old one. (Please do not flame me on this; I already know.) So I'm going to be giving the dealer a check (or checks) for [the cost of the new AS] + [the balance on my old AS]. But my question is, how do I make sure the dealer actually pays off the old AS?



I know there has been all kinds of litigation over this issue over the last oh-so-many years. This dealer is by no means fly-by-night, but it's not always f-b-n dealers that fail to do pay off the trades.



So how do I protect myself? (Again, please don't waste my time or yours with your observations about what brought me to this situation.)

[pcskier]

I couldn't tell from your post for sure but it sounds like you are paying cash for the new one, as well as the payoff on the old one (you mentioned you'd be writing checks)? In that case, just pay off the old one yourself.

If you are getting a new loan that includes proceeds to pay off the old one, the dealer should only receive their portion, and the lender should directly pay off the old lender. They do this to protect themselves from the dealer as well. Double check with the new lender. The dealer should only receive what they are due on the new purchase.

[sterlinghick]

In no circumstance should the check you’re making for the shortfall be made out to the dealer. It should only ever be made out to the lender.

[BigSxyWhtGuy]

Originally Posted by pcskier

I couldn't tell from your post for sure but it sounds like you are paying cash for the new one, as well as the payoff on the old one (you mentioned you'd be writing checks)? In that case, just pay off the old one yourself.

If you are getting a new loan that includes proceeds to pay off the old one, the dealer should only receive their portion, and the lender should directly pay off the old lender. They do this to protect themselves from the dealer as well. Double check with the new lender. The dealer should only receive what they are due on the new purchase.

+1 what they said

[DougFelts]

Reminds me of when we purchased our trailer last fall. We did finance a portion, and then when we received the license plate and registration, I notice that the dealer had indicated that there were no lien holders. The registration indicated we owned it outright!

I figured that the Credit Union wouldn't be too happy about that, so ended up having to pay $30 to get the registration corrected...

You just gotta keep a close eye, I guess...

Congratulations on the new trailer!

[banderabob]

You've gotten some good responses, and mine won't answer your question. But, I can't recall the last time I traded anything for new, or for a replacement. There is no question that one can routinely receive more by selling yourself, which we did with our first AS, after buying our 2nd from a private seller. I'm certainly not criticizing your decision, as it apparently works best in your situation. Onward with the new, and enjoy!!

[xyzabe]

Originally Posted by DougFelts

Reminds me of when we purchased our trailer last fall. We did finance a portion, and then when we received the license plate and registration, I notice that the dealer had indicated that there were no lien holders. The registration indicated we owned it outright!

I figured that the Credit Union wouldn't be too happy about that, so ended up having to pay $30 to get the registration corrected...

You just gotta keep a close eye, I guess...

Congratulations on the new trailer!

I congratulate you on correcting the title to show the credit union as lien holder but the dealer should have ponied up the cost since it was their mistake. Makes me wonder how often that gets screwed up on titles.

[Milo1952]

First payoff your current trailer yourself.
Secondly, sell your trailer yourself. Go on Airstream
Classifieds and see what your trailer is currently selling for.
Thirdly, don’t forget to get a 15 to 20% discount on the new
Trailer you are purchasing. Cash is KING!

[wavelength]

You are receiving some bad information here. First the lender is not responsible for paying off your trade, the dealer is. The dealer will want to pay off your trade ASAP because they need the title so they can sell it. You can check with the lender on your trade in about a week or two to see if it has been paid off, I’m sure it will be. I spent 30 years in the car business so I’m kind of familiar with this process. A reputable dealer will want to pay off your trade and move on its just the way business is done every day

[Milo1952]

I looked on classifieds and see similar trailers like yours listed
From 39000 to 41000. 2015 model yr.
A 2014 22ft was modified as office space and was asking near 32000.
If used for travel it would have to be restored at extra$$$.
Yours might fetch between 35000 and 40000.
List it and see what happens. Unless, Money is no object to you.
Would you mind sharing what they are offering to you as a trade in?

[OTRA15]

I would consider doing this transaction at an office of your lender, so that they can execute a lien release for you, and also maybe for the buyer IMO.

In theory you may not even have a clean title which you can transfer IMO. What exactly does your title document say in the "Lien Holder" section?

Treat this like a real estate "closing" when you buy a house, and everyone can leave happy.

Good luck,

Peter

[ghaynes755]

Belbein, listen to wavelength. He is on frequency with his advice.

[wavelength]

More bad advice I see. It’s not like a real estate deal. It’s a vehicle purchase, handled completely different. The only dealers that wouldn’t pay off a trade in have 8ft fencing around their lot and are run by Frankie and Guido. You said this is a reputable dealer so do this, go to the dealership, write the check you need to write, take delivery of your new Airstream and ENJOY YOURSELF 😎

[Eric 26 Argo]

+1 on Wavelength's post. The dealer has to move your old trailer and that won't happen with out a clear title. They will probably cut a check to your lender out of their account before they even deposit your check.

[TXWJ]

Wavelength is spot on. Make sure you have a buyers order that clearly spells out what they are paying your old lender (payoff) and you are all set. Without the title they cant sell it, so they will pay it off.

[featherbedder]

It happens a dealer gets in financial trouble, sells veh. does not remit title or co to finance co. Buyer sells trade to indv. dealer handles money for used buyer applies to new but pockets money. It happened to son w/deal for new peterbuilt w/long time established dealer, he did not pay finance co. did not pay state taxes, also did not remit any taxes etc. collected from employees. DMV involved plus feds, state fraud etc. last I heard state looking for him. Son did not lose nor buyer of used truck. This also happened in Aurora Il w/ford dealer for truck pur. by me also chrysler dealer. My deal was cash. Dealer sent papers to state w/lien to ford finance co. Now I never trust all papers filled and I will mail or no deal..... Fraud can happen no matter how old dealer ship or how large.

[wavelength]

Originally Posted by Eric 26 Argo

+1 on Wavelength's post. The dealer has to move your old trailer and that won't happen with out a clear title. They will probably cut a check to your lender out of their account before they even deposit your check.

That’s the way it works. It’s worked that way for as long as there have been vehicle transactions.

[vintageracer]

Most states require dealerships to post a bond to be in business to help payoff misdeeds or fraud caused by a dealer.

Certainly not the solution to all fraud issues however it helps!

[JonDNC]

Wavelength has it right. Also don’t forget depending on the state you may have a sales tax advantage by trading in vs selling yourself. I know I do which is why I trade in vehicles (besides less hassle). I.e. new trailer 100k trade in value 50k. Assume 7% tax. In a tax advantage state you subtract the trade before tax is calculated. So you’re only paying tax on 50k. Savings 3500.

If you owe on the trade in (assume 100% of value) that’s added back in afterwards so you’re financing the full 100k. I just did a similar transaction on my truck saved me almost 4K in sales tax.