Can you trade in and pay cash

Disclaimer: Links on this page pointing to Amazon, eBay and other sites may include affiliate code. If you click them and make a purchase, we may earn a small commission.

hemipower95 2.0

Senior Member
Joined
Oct 31, 2016
Posts
782
Reaction score
211
Ram Year
2015
Engine
5.7
If the vehicle is $35,000 and they give me $30,000 for my ram can you pay off the negative equity and pay the rest of the new vehicle in cash when all is said and done, taxes etc
 

Ferro

Senior Member
Joined
Sep 17, 2016
Posts
435
Reaction score
198
Ram Year
2016
Engine
Hemi 5.7
If the vehicle is $35,000 and they give me $30,000 for my ram can you pay off the negative equity and pay the rest of the new vehicle in cash when all is said and done, taxes etc

I don't see why you wouldn't be able to.
 

reek

Senior Member
Joined
Nov 23, 2014
Posts
1,592
Reaction score
733
Location
Sacramento
Ram Year
2015 RAM 2500 CC 4x4, 72 D100, 73 D100, 01 RAM 2500 field truck
Engine
6.4 Hemi
yes. cash still talks.
 

mtofell

Senior Member
Joined
Mar 18, 2014
Posts
2,631
Reaction score
2,269
Ram Year
2014
Engine
Hemi 6.4
If you run into trouble you can pay me the cash and I'll work out a deal :roflsquared::roflsquared:

What happened? Did you win the lottery tonight??? :happy107::happy107:

Yes, you can always pay cash...... up to a point that is. Anything over 10K and you may have to fill out some forms. At least that's the way it works at the bank. Dealers are likely similar. And the last time I did it at the bank it really wasn't a huge deal. They just asked who my employer was to be sure I had an actual job - other than the drug dealing the cash came from, of course :):)
 

yillbs

Senior Member
Joined
Dec 13, 2016
Posts
996
Reaction score
498
Ram Year
2016
Engine
5.7 Hemi
If you run into trouble you can pay me the cash and I'll work out a deal :roflsquared::roflsquared:

What happened? Did you win the lottery tonight??? :happy107::happy107:

Yes, you can always pay cash...... up to a point that is. Anything over 10K and you may have to fill out some forms. At least that's the way it works at the bank. Dealers are likely similar. And the last time I did it at the bank it really wasn't a huge deal. They just asked who my employer was to be sure I had an actual job - other than the drug dealing the cash came from, of course :):)

I traded in a car for 7500 I owed 14k truck was 39k . I paid 47k cash and walked out. You sign a form at the bank for that cash for irs but its completely doable.
 

TRCM

USN, Retired
Military
Joined
Jul 30, 2012
Posts
3,238
Reaction score
5,359
Location
Newport News, VA
Ram Year
2012 1500 Laramie CC 4x4
Engine
5.7 Hemi
If you own the 30,000 truck outright and don't still owe money on it...sure, why not.

but it you are wanting to trade in a truck you still owe on, and pay the trade in to purchase price difference in cash, well, that probably won't work, since the collateral for the truck is the truck, and doing what you want to do, the collateral for the existing loan would not match....and the lien holder may not like that too much.
 
Last edited:

baum

Senior Member
Joined
Aug 26, 2013
Posts
1,893
Reaction score
411
Location
savage, mn
Ram Year
2015 Laramie
Engine
Hemi 5.7
yes. cash still talks.

not these days at dealers. they want you to finance through them so they can get a kickback. most of the time when you see a "best price" online type add it includes some sort of 500-1000 finance "cash back" also.
 

00R/T

Senior Member
Supporting Member
Joined
Apr 18, 2016
Posts
1,278
Reaction score
808
Location
CT
Ram Year
2013
Engine
5.7 HEMI
not these days at dealers. they want you to finance through them so they can get a kickback. most of the time when you see a "best price" online type add it includes some sort of 500-1000 finance "cash back" also.


Yes. Very true. I always finance through my credit union instead of the dealer, so I make it clear up front that I'm negotiating a cash price, not a financed one (to them, outside financing is the same as cash).
 

69GWC

Power Wagon
Joined
Oct 1, 2015
Posts
5,387
Reaction score
6,949
Location
Spring hill, Kansas
Ram Year
2022 Power Wagon
Engine
6.4 Hemi, 8sp
I had to finance my truck for 4 months to get the rebates so I could buy my truck for the price I did. Once the 4 months are up I will pay it off, but this was the first time I had run into this.
 

Rambo182

Member
Joined
Jan 4, 2017
Posts
85
Reaction score
28
Ram Year
2015
Engine
V6
Yes, they wld just add the 5k negative equity onto the bill for the new truck. Why don't you use the credit card for the max amount allowed by the dealer to get points though? Assuming you are ballin, you would just pay it off in less than a month anyway. I use my credit card for everything and pay off the balance at the end of the month.

Sent from my SM-G920V using Tapatalk
 

Hootbro

U.S. Army Veteran
Military
Joined
Jul 31, 2015
Posts
2,731
Reaction score
1,942
Location
Delaware
Ram Year
2017 1500 Express 4x4
Engine
Pentastar 3.6L
not these days at dealers. they want you to finance through them so they can get a kickback. most of the time when you see a "best price" online type add it includes some sort of 500-1000 finance "cash back" also.

There is "accounting tricks" a dealer can do to get you that finance rebate credit if you have hyper positive equity on your trade value.

Cliff notes is they basically cut you a check for the difference, you finance for the minimum needed to get the rebate and then you make one payment to pay it off on the first payment.
 

blrmkrl83

Senior Member
Joined
Dec 4, 2011
Posts
270
Reaction score
107
Location
Iowa
Ram Year
2011
Engine
5.7
You can probably get a better price by financing through the dealer. They often make money on the loan and there are sometimes rebates for financing through the manufacturer. Get the loan, but make sure there is no penalty for paying it off early or fees for getting the loan. When you get the first statement pay it off.
 

deerhunt799

Junior Member
Joined
Sep 23, 2016
Posts
18
Reaction score
12
Location
Colorado
Ram Year
2016
Engine
5.7 Hemi
I had to finance my truck for 4 months to get the rebates so I could buy my truck for the price I did. Once the 4 months are up I will pay it off, but this was the first time I had run into this.

The dealer tells you that you need to finance it for X number of months, however, that's how many months they need you to make payments before they get the kickback from the finance company. Almost every one of my new vehicles I finance through the dealer for the added rebate then refinance through my credit union within a month or two. I've never been questioned.
 

drittal

Senior Member
Joined
Apr 24, 2015
Posts
1,557
Reaction score
636
Location
E. Montana
Ram Year
2013
Engine
6.7
If the vehicle is $35,000 and they give me $30,000 for my ram can you pay off the negative equity and pay the rest of the new vehicle in cash when all is said and done, taxes etc



Nah. Cash is worthless. Send it to me and I'll recycle it for you free of charge. ;)


Sent from my iPhone using Tapatalk
 

baum

Senior Member
Joined
Aug 26, 2013
Posts
1,893
Reaction score
411
Location
savage, mn
Ram Year
2015 Laramie
Engine
Hemi 5.7
Yes. Very true. I always finance through my credit union instead of the dealer, so I make it clear up front that I'm negotiating a cash price, not a financed one (to them, outside financing is the same as cash).

No offense to you but i laugh at this situation. Reason being is if a person has good credit an auto loan rate is negotiable at a dealer.

EX when i purchased my '13 camaro new from a dealer they asked me if i would finance through them. i said my CU can do 1.9 if you will beat it sure. guess what they did at 1.6. then to **** them off i paid it off in 4 months so they didnt get their kickback either.

Hell when i bought my current ram my finance manager had me at a 2.2% he called two banks with me in his office and got them to lower to 1.7%.

If a dealer get a kickback from a bank why do people care so much? they did the work to get you a loan so why shouldnt they get something for it. If you pay 1.9 from a dealer or 1.9 from a personal bank the payment is the same. With good credit loans most of the time dealers use small local CU's.
 

deerhunt799

Junior Member
Joined
Sep 23, 2016
Posts
18
Reaction score
12
Location
Colorado
Ram Year
2016
Engine
5.7 Hemi
No offense to you but i laugh at this situation. Reason being is if a person has good credit an auto loan rate is negotiable at a dealer.

EX when i purchased my '13 camaro new from a dealer they asked me if i would finance through them. i said my CU can do 1.9 if you will beat it sure. guess what they did at 1.6. then to **** them off i paid it off in 4 months so they didnt get their kickback either.

Hell when i bought my current ram my finance manager had me at a 2.2% he called two banks with me in his office and got them to lower to 1.7%.

If a dealer get a kickback from a bank why do people care so much? they did the work to get you a loan so why shouldnt they get something for it. If you pay 1.9 from a dealer or 1.9 from a personal bank the payment is the same. With good credit loans most of the time dealers use small local CU's.

I have no problems with a dealer getting a kickback, assuming they offer the lowest rate. Bought a Subaru a couple years back, they offered 1.49 whereas my CU was 1.75 so Subaru (Chase) Finance got the loan. When I bought my Ram, my CU was 3% lower than through the dealer. That's when I refi and could care less if the dealer gets their kickback.
 

MADDOG

Not RamForum Staff
Supporting Member
Military
Joined
Dec 26, 2011
Posts
14,443
Reaction score
9,877
Location
Arizona
Yes, you can do that as long as the deal and amount paid clears both vehicles with nothing left owing.

I did that on my 300 when I bought it. Dealers might not like it as they count on those financing contracts.
 

69GWC

Power Wagon
Joined
Oct 1, 2015
Posts
5,387
Reaction score
6,949
Location
Spring hill, Kansas
Ram Year
2022 Power Wagon
Engine
6.4 Hemi, 8sp
The dealer tells you that you need to finance it for X number of months, however, that's how many months they need you to make payments before they get the kickback from the finance company. Almost every one of my new vehicles I finance through the dealer for the added rebate then refinance through my credit union within a month or two. I've never been questioned.

Well that could be but they told me it was how I was able to get my truck for 27k if not I lost the rebate.
It fine either way 4 months of interest is not that much in the grand sceem of things.
 

yillbs

Senior Member
Joined
Dec 13, 2016
Posts
996
Reaction score
498
Ram Year
2016
Engine
5.7 Hemi
No offense to you but i laugh at this situation. Reason being is if a person has good credit an auto loan rate is negotiable at a dealer.

EX when i purchased my '13 camaro new from a dealer they asked me if i would finance through them. i said my CU can do 1.9 if you will beat it sure. guess what they did at 1.6. then to **** them off i paid it off in 4 months so they didnt get their kickback either.

Hell when i bought my current ram my finance manager had me at a 2.2% he called two banks with me in his office and got them to lower to 1.7%.

If a dealer get a kickback from a bank why do people care so much? they did the work to get you a loan so why shouldnt they get something for it. If you pay 1.9 from a dealer or 1.9 from a personal bank the payment is the same. With good credit loans most of the time dealers use small local CU's.

No offense but that's just as ignorant. Cars are not investments lol, if you paid it off in 4 'moths , you still overpaid. Why didn't you just pay cash if you had hr cash.

Your logic is having good credit gets you a negotiating rate. Why pay ANYTHING if you don't have to. Its all about preference, I'd rather be debt free and cash poor than heavy in debt and more cash.
 
OP
OP
H

hemipower95 2.0

Senior Member
Joined
Oct 31, 2016
Posts
782
Reaction score
211
Ram Year
2015
Engine
5.7
No offense but that's just as ignorant. Cars are not investments lol, if you paid it off in 4 'moths , you still overpaid. Why didn't you just pay cash if you had hr cash.

Your logic is having good credit gets you a negotiating rate. Why pay ANYTHING if you don't have to. Its all about preference, I'd rather be debt free and cash poor than heavy in debt and more cash.

That's why I asked if I can pay off in cash, no more payments, although my truck lost $10k in value, that hurts
 
Top