PhilY

I have a 2k max that I've been thinking about trading with another person, for a used M3 maybe. The thing is I still owe some money on the car. I'm not upside down but I don't have enough cash right now to pay it all off, plus M3 is going cost more $$ than the max

So has anyone traded their car with another person with lien on it? Possible? Easy? What's involved? I'd appreciate any comments.

BigDogJonx

iTrader: (7)

You have to let the lien holder know about the trade and have them either Transfer over the lien to the new owner (which rarely happens) or you need to pay off the lien otherwise the new owner cannot register the car.

Dixit

PhilY

I was thinking I'd get a loan for the full price of the used M3, say 20k, then pay the current lien holder the money currently owed, say 10k, get the title, then give the max and 10k to the M3 seller. But then the bank that's giving me 20k would probably want the title very soon. Plus this deal would most likely be cross-state...

Anyone have done something like this? You story will be much appreciated. Thanks for your input, Dixit.

PhilY

Oh, and the whole point of "trading" instead of buying and selling is to save on the sales tax (NY). When you trade in your car, you pay the sales tax on the new car minus your trade-in value so I figured person-to-person would work similarly. Am I thinking right?

Chinkzilla

Have some fiscal responsibility man. this is a BAD idea. You're already in the hole and u wanna dig yourself deeper for what? So you can get another money pit to drive around and feel somewhat happy for a while till u want something better? Sorry to bash on you man, but the logic of your thinking eludes me. You gotta learn to live with what you got until u really can afford what you want.

Zero Deuce SE

I second that comment. I recommend that he try living within his means.

ohannon7

iTrader: (5)

Cant you have the person w/ the M3 apply for a loan and take over the one for the max and you do the same for his car? Im pretty sure thats how it works. If the person w/ the M3 wanted to re-do the loan into his name w/ the current bank then good, its easier. But if he wanted to re-do the loan w/ his own bank then they would make up a new loan and payment plan for him and pay off your bank for the loan in your name, and vica-versa. You just need to trust the person b/c if you were to do this and he punked out and didnt go through w/ buyin yours your screwed w/ 2 loans, asumming your credit is good enough.....

PhilY

ohannon7, thanks for your input. I guess it could work like that too.

Geez, jumping on the gun without knowing any facts, THAT is a BAD idea. All you know about my finances is that I have a car that I owe some money on. I thought I was being obvious implying that 10k was a hypothetical amount. I don't like to discuss my personal finances with strangers online but let's just say being very young, single, and making 6x,xxx salary plus income from investments, I don't think I'm living beyond my means nor would be if I chose to purchase a $20's car.

You've got one thing right, tho. "So you can get another money pit to drive around and feel somewhat happy for a while till u want something better?" I like to change cars once in a few yrs so what I do is set a monthly allowance for entertainment - cars falls into that category. After 2-3 yrs, I could afford something better with the same budget so I move on. Think 2000 max bought in 2000 vs. 2003 350z bought in 2003. Cars have always been THE anti-investment and they always will be. You know, food/clothing are "money pits" too. They de-value extraordinarily yet you have to keep buying them new every day/month!

Wisky97SE

iTrader: (1)

My suggestion is pay off the Max with the large income you have, and trade for the M3 when the Max is already paid off. Why pay more interest on another loan if you have the cash to pay it off?

PhilY

This is a good advice for most people. The thing is that the return I get from the investments have been beating the car loan interest rates - e.g. rate of return on investment: 7% vs. car loan: 5%. So, it makes more financial sense for me to not tie up the funds to pay for a car in cash.

I guess you guys are trying to be helpful but I was just frustrated when Chinkzilla just assumed things about me then "bashed on" me based on the facts that are in his head. Please no more financial/life advice. I think I have pretty good idea of what's involved in trading now so thank you to all that have actually stayed on topic.

Chinkzilla

Ok, so everything i ASSuME'ed about your finances seems in line with what you said. I too, am in a similar financial situation. I too make 60k a year and drive a maxima. However if I decided to buy an M3 today and trade in my comfortable 200 dollar a month payment on my maxima (i put 17,500 down) for a 600+ dollar a month payment on an M3. I sure as hell would make sure I first paid off the 10 grand I owe, sell the car. Then buy an M3. I'm not trying to bash on you man, i'm just protesting the contemporary thought in this country today where ppl think they're entitled to material things as long as their credit company is willing to sink them in debt.

I never called a car an 'investment' bad or good. Food and clothing are what is called 'perishable goods' meaning u have a recurring need for them, once they're used up they have to be replaced. A car is considered a 'durable good'. And money pits that they are, require maintenence, repair, and in most of our cases, mods. So really the comparison can't be made, you don't repair your steaks, or take your clothes in to the tailor every 3000 miles. You also don't pay food and clothing insurance, or have to register them at the DMV.

FanaticMadMax

I agree with Chinkzilla what categorized as perishable good and durbable good. As far as the M3, good luck with that, they are money pit, since maintenance are, indeed, HIGH and COSTLY. It's your money, so you spend whatever you wish to your liking. BTW, what year is the M3?

z32drifter

ok so much about a simple transaction......you are going to trade your Max and X$ for the M3..correct
you must pay off the lien on the Max to give the new owner a clear title....if your lien is with a bank they have the title for the Max.... now if the M3 owner has title for the M3 and no liens.... you can simply go to your bank and get the money for both your lien holder and the owner of the M3 using the M3 a collateral.....so you owe 10k and the M3 owner wants your car and 10k.... you borrow 20k against the M3... pay the bank for the Max and the owner for the M3 .... I can't help you on the tax question... check with DMV or local Tax collectors (tag) office...later

PhilY

There is no particular M3 in mind nor am I sure if it would be M3. I was just interested and hadn't done trades with another person so I thought some of you might like to share your experiences. Yes, the food analogy was a little off but the point I was trying to make, poorly, was that car or food, they are just monthly expenditures. What's the difference between saving up and buying 15k car in cash, then pay $300/month modding/fixing vs. buying a better car and pay $500 monthly payments and not spending money on modding/fixing? This again is a hypothetical but common situation, I know M3s will require more attention than the maxes.

There were a few M3s that grabbed my attention, however. I found one meticulously maintained 98 M3 w/ 60k miles for 18k, another equally nice 99 M3 w/ less than 30k miles for 23k, and a decently-shaped 95 M3 for 12.5k which I was talking to the owner about trading up straight. All manual, coupe, of course. My budget doesn't allow E46 M3s yet.

Chinkzilla

i apologize. what i was REALLY riled up about was the fact that you're trading in your nissan for a bimmer. TRAITOR!! just kidding. dude, it's your money do what makes you happy. best wishes.

Wisky97SE

iTrader: (1)

One day I hope to own an M car . . .until then, I shall enjoy the Max . . . good luck on whatever route you take, and be sure to post pics of the M if you get one. Check out dtmpower.net m3forum.net and bimmerforums if you are serious about this decision, these guys could probably steer you in the right direction when it comes to what to look for and what to avoid; not to mention you could probably find a couple well maintained enthusiast owned M3's for a good price on one of the sites.

PhilY

My first car was 85 accord -> then 92 protege -> then 98 tracer(escort) -> then my max. As I've been moving up, my driving skills have also been improving corespondently. I still love my max but I think a car with rear-wheel drive/LSD/more power/and better handling would be the next logical step up.

Perhaps I should have indicated interest in the 350Z instead of the M3. Then we wouldn't have had to go through this mess. Thanks all for your advice and half-assedly contructive criticism.

FanaticMadMax

I would love to have a E46 M3 but I'm too broke for that.