I have a question about auto loans and I hope this is the right place to start a thread.

I contacted my credit union about a loan for a used car. I was approved with a low interest rate.
The private party I purchased the car from did not want to wait for me to get a loan.

I asked my credit union if I can pay for the car first, then obtain an auto loan. They said it was fine. I asked whether the tax would be financed with the loan. My loan officer said that I could either pay for it myself or have it included in the loan. I purchased the car with cash and registered the car, paid the tax title and license.

My credit union is has not called me back and the loan officer does not return my calls.

I called my local dealership and asked about "reverse auto loans" they told me since I already registered the car, I would have to pay the tax again for the loan.

Do I have to pay the tax again or can I get a secured loan without paying the tax again?

 

You should not have to double pay tax on the loan. The tax charges come from registering the car with the state, that's all. The CU can do 100% financing as long as the book values add up. By that I mean they can include the tax and everything in with the loan amount as long as they are not in a bad loan to value situation.

I'm surprised though that you paid cash for the car but now want to get a loan for it? Going to repay someone that floated you the $$?

Good luck.

 

Thanks, you're right. I should not have to pay the tax again. I spoke to my credit union and they assured me that I would not have to. I need to wait for the title to be mailed to me before the bank adds themselves as the lien holder.

The reason why I paid cash was to negotiate the deal. Since my credit union offered a low interest rate, I figured I'd take the loan and keep cash for real investment.