was wondering how a trade works. if both parties agree with trading cars... but still owe money to the bank.. how does this go about? do ppl just trade pink slips? trade cars? what about monthly payments? etc?

 

good question, I assume both parties have to agree to buy and sell for the same price to each other. Basically sell the car, and have the bank buy the other car for the same price. The banks would both have to go for the other car in the trade though.

 

Both parties would have to have their cars paid off in full prior to the trade/sale. The only other way - is to have each bank approve both buyers on the take over payments schedule. The problem is, the original purchaser will always be on the hook for the bank note.

So - paying them off is the best way to go. Remember, you don't have full title on your car until the bank has been paid off, therefore you can sell or re-register the car in another persons name without the bank authorizing the pink slip as well. If both parties own their cars outright...there's no issue.