Can you negotiate a lower price when you payoff an auto loan?
NicoNico asked:
I am aware that this can be done when buying out your lease, but what about when you are just paying off your loan? Oh, one more thing, we already have a pretty low interest rate; so refinancing isn’t really an option. Thanks!!
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I am aware that this can be done when buying out your lease, but what about when you are just paying off your loan? Oh, one more thing, we already have a pretty low interest rate; so refinancing isn’t really an option. Thanks!!
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Tags: Auto Loan, Low Interest, One More Thing
March 2nd, 2009 at 9:28 am
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You can’t borrow money from someone then turn around a negotiate a lower payoff amount. They will laugh at you if you try.
“I borrowed $10 but I’ll pay you back $8. Deal?” The answer will be NO.
March 2nd, 2009 at 4:58 pm
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No.
March 4th, 2009 at 6:10 pm
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No you entered into a contractual agreement to make a certain # of payments at a certain agreed upon price.
With a lease the lessor is usually worried about what the vehicle will bring at auction and how much it will cost them to get it to auction. And you have completed the contractual portion of your agreement if its paid off, so they can cut a deal on the lease end value.
I hope this helps.
March 6th, 2009 at 4:13 pm
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No, the amount that you currently owe on the vehicle is the balance on your loan. That is the amount borrowed minus the principal paid on the vehicle. therefore that amount IS what you owe. It is different with a lease because you have the total number of payments as your balance, so they can negotiate lower if need be.