trading vehicles (private party) loans involved, please help

Hey TW
Wasn't too sure where to post this, but have a question.
If two people want to trade their vehicles EG.
My truck that i owe $xxxx
for his truck which he owes $xxxx

how does this work?
Never done anything like this before and just want to find out from a wiser member who could explain how this could possibly work.


I have been going back and forth with another person and nothing is set in stone, or considered highly possible at the moment, but i dont know how this could work

My truck is financed through TFS and i owe $X amount on my truck.
He is also financed through a CU on his truck and owes $x amount

in the case where a trading partner owes more than his truck blue books at/ is worth...
does their existing loan now carry over to the new/traded truck and owner?
without confusing anyone, because i am not sure how to really ask this

If i have a $5000 loan on my vehicle and i trade a guy who owes $6000 on his truck, do i take over the $6000 loan on his truck or do we kind of flip vehicles/titles and the existing loan transfers with you to the new/traded vehicle some how?
i am lost...never done this. someone please help


thanks in advance

 

I don't think this is even possible as neither of you actually own the vehicle, the CU and TFS do. But then again I could be WAY off.

If it were to work, I would think that if one of the vehicles were valued less than what is owed, that person would have to pay the difference. I don't know if you were bringing that up because that's your situation or not.

If I were you, I'd just call your CU and check with them since they are the actual owner of the vehicle and hold the title.

 

You FIRST need to establish an agreed value for each truck. Lets say yours is worth $7K and his is worth $7K.

By these numbers you have $2K in equity and he has $1K (based on the owed values shown in the OP).

You would go to your chosen lender and get a loan approved for enough to pay off YOUR loan, using his truck as the vehicle to purchase. He does the same thing in reverse (gets a loan for the amount owed on HIS truck using YOURS as the v-t-p).

Put the lending institutions in touch with one another, and let them issue checks and mail titles back an forth.


What he owes on HIS truck is irrelevant TO YOU. It only affects him in regard to how easy it will be for him to get a loan of the same amount to pay for your truck.


You each have a position (equity or upside down) on what you have now. If you treat each other fairly, you will maintain that same position on the other truck.

What each of you owes has NO RELATION to what each truck is worth.

 

thank you for the reply
that makes a little more sense than what i was thinking in my head. If we both like eachother's vehicles, i think we need to have a sit down and talk "the brass tax" and get both finance corps on the line or something.
thanks again