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Rycon
New User
May 9, 2010, 10:51 AM
Post #1 of 8
(1995 views)
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Advice on Trade in?
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Please excuse me if I am posting this in the wrong section, I couldn't seem to find an exact fit. I am just looking for general advice as this is my first new car (all previous were used and cheap). I bought a 07 Nissan Versa SL Hatch brand new at the dealer in 07 for my wife. She isn't really satisfied with the car now. KBB estimates trade in value at about 7.5k and we still owe 10k on it. We would like to get something different but arent sure the best way to go about it to get a fair deal. Any advice would be greatly appreciated.
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Hammer Time
Ultimate Carjunky
/ Moderator
May 9, 2010, 12:04 PM
Post #2 of 8
(1990 views)
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Re: Advice on Trade in?
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Your not in a good situation no matter what you do. Financially, the best thing would be to sell it outright and maybe you can get a little more for it. Then you have to worry about timing and waiting till you sell it to buy something else. The easiest way would be to trade it in but that will put you even more upside down on the next loan because they will roll what you owe on this one into your next loan. The smartest thing to do a stick it out for another year or two and you won't get hurt so bad.
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We offer help in answering questions, clarifying things or giving advice but we are not a substitute for an on-site inspection by a professional.
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Sidom
Veteran
/ Moderator
May 9, 2010, 2:10 PM
Post #3 of 8
(1983 views)
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Re: Advice on Trade in?
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HT pretty much summed it up
With any new car there is always that deficiency for the 1st few years until it evens out. They even have gap insurance to cover that difference in case the vehicle gets totaled..
You could try to sell it but would still have to come up with some money for the payoff for the simple reason someone couple pay way less for the same year vehicle off a lot.
Riding it out would be the cheapest option. If you have to get rid of it then rolling it in to a new car loan would probably require the least up front money.
If you are planning on only have a new car for a couple of years you may want to look into leasing.....Just read all the terms. I know you can get upside down on mileage and wind up being in the same boat you're in right now....
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Tom Greenleaf
Ultimate Carjunky
/ Moderator
May 10, 2010, 5:24 AM
Post #4 of 8
(1975 views)
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Re: Advice on Trade in?
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Agree - Ride it out. In fact make extra payments and get rid of the note. Read your car loan papers or have them interpreted. Bet you find any extra on the payment goes off the back end which in turn makes the day it's paid off quicker at a faster rate than you would think. It also allows you (rates vary place by place) to raise deductibles on insurance you choose when the vehicle is paid for - more money saved.
Also think of what a month is. There are 4.3 weeks (ave) in a month = 13 per year instead of the 12 named months. It's pretty straight forward math. Most folks get paid based on a week's time so that hidden month really is there!
T
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Rycon
New User
May 10, 2010, 8:18 AM
Post #5 of 8
(1969 views)
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Re: Advice on Trade in?
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Thanks guys you have been most helpful. I wasn't aware how this all exactly works when you buy a new car, I knew it wasn't the best decision at the time but sometimes your time is worth more.. it all depends.
From what it sounds like, the best bet for us is to refinance because were paying like 12% for no reason, perfect credit but the bank didn't want to refinance because of 'lack of credit lines' which basically meant they wanted us to get more loans or credit cards.. whatever. Should be able to do it now though since some time has passed and no payments missed.
Technically I could pay the car off or even most of it with our savings, but they believe they get the interest out of you regardless.
I will take some more time to read over these posts and check it out. Thank You
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Tom Greenleaf
Ultimate Carjunky
/ Moderator
May 10, 2010, 8:59 AM
Post #6 of 8
(1968 views)
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Re: Advice on Trade in?
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You need to be sure you aren't just giving them 12% all at once if paperwork has early payoff penalties or some crooked thing like that. I don't think my state allows that but who knows what could be legal and where?
Seems to me that if you traded it in now at a loss YOU would just be making up the difference and the interest would cease on the original deal. It then puts you "underwater" (term for owing more than the equity of the item) again right away with another car.
Makes it really worth taking time to choose the right car, and one you will like and serve the purposes needed.
Need to look and or ask what the penalties if any are for early pay off. As already said by the others, riding it out for a bit more will probably be most advantageous. Cars are a loss no matter how you slice it. Just aim for the least, loss
T
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Hammer Time
Ultimate Carjunky
/ Moderator
May 10, 2010, 9:36 AM
Post #7 of 8
(1961 views)
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Re: Advice on Trade in?
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If you refinance, make sure it's for a shorter term and your not paying a ton of service and bank charges for the new loan. You can make it even worse if you just start all over again.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
We offer help in answering questions, clarifying things or giving advice but we are not a substitute for an on-site inspection by a professional.
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joemag7
Novice
May 18, 2010, 6:09 PM
Post #8 of 8
(1939 views)
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Re: Advice on Trade in?
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Deleted and banned
(This post was edited by Hammer Time on May 18, 2010, 6:11 PM)
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