Underwater on car loan and buying new car. (F150, SUVs, trucks)
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If all you could do was make a $393 payment, it's going to be tough to do a $659 payment. You have a Corolla with some cosmetic damage and 120,000 miles. Apparently you had no thought about buying a new car until your brought your Corolla with some cosmetic damage in for regular service and the sales guy put it in your head that you should buy a new car. Apparently this then kicked of a thought process that because they sales guy though you should buy, that means you should buy a new car. If it's something you've given serious though to and not just whimsically decided it was a good idea because the salesman told you to. Yes, that's blunt and maybe that was just the last thing that pushed you over although it's still a stupid thing to push you over.
That out of the way you get to specifics of how to buy a new car. Figure out what's a good price. Rav4 World has a thread on what people are paying, Edmunds TMV, Costco if you have Costco. $20,000 for a base model RAV4 sounds like a good deal but I haven't done the homework. But you need to do the homework. My Prius had pretty much the same MSRP and I paid $20,400 for it, plus 0% for 60 months. That was a good deal on it but nothing great. I sold my 7 year-old Mazda3 which was in fair condition and around $2,000 in needed mechanical repairs at shop rates for $6,000. Ran and drove, but the fuel pump needed to be replaced and it needed some suspension work. Trade in offer was $2,000. I had a buyer lined up who was willing to wait a few days since it sold so quickly.
You have to do your homework on what your trade is worth and what's a good price on a Rav4. At the very least take it to Carmax. The only advantage in most states to the game is to get the buyer to pay more. If you're in California, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia, then there's a sales tax advantage. Oregon has no sales tax. The other states calculate sales tax off the net price. If it's $25,000 purchase and $5,000 trade, you pay taxes on $20,000. If it's a $20,000 purchase and $1 trade, you pay taxes on $19,999. It won't be extreme. It's just a game the dealer plays to give you an okay deal you could get anyway on the purchase so they can gouge you on the trade. Negotiate them separately.
exactly
a dealer will offer 2,000 dollars for a car you can sell for 5,000 and point out the 150 dollars in tax savings. it's a joke.
jerseygal4u hasn't returned for four days, or seven pages of comments. All of the good advice was wasted, she is not going to listen to any more, her forever underwater little heart is set on the shiny new object and nothing shall deter her. Underwater and in debt is her future...
I got a car loan of $26000 with no interest in 2017. I was only able to make the monthly payment of $393. It was on a small,brand new off the lot car from Toyota. But,someone did a hit and run in Nyc and my car has dents. I also ran up a lot of miles driving all over NJ due to my career. I am at 120,000 miles in under two years and nine months. i still owe $15700 on it.
The issue.Both cars are from the same dealership btw. Apparently the dealership is running a special. No money down on a new car. My loan is directly from Toyota.Both loans would be.
While getting my car serviced,someone from sales came over and asked if i wanted to trade it in. Due to the condition of the corolla,he said he could only offer $3500. I told him i am not buying if they do not give me at least $6000 for it.(it isnt like they do not have service records on it, I ONLY used them the whole time)
So he said he would shave off $4000 of the price of a Rav-4 to make up for the loss on the 2017 corolla.That is $20000
Here is where it gets fuzzy. I had $8600 i was going to use to pay on the corolla,which would have brought me down to $7100 owed on the corolla. The salesman said it would be better to put the money down on the new car and roll over the $15,700 into the new loan. I asked him what was the difference and he would not say directly. Because i would have rather given the money to the bank,and still walked out with the new car with no money down. My new payment would have been $659/mo for 6 years at 1.9% interest.
That is almost 4 times what I am paying. But hey not everyone has a brand new Tesla.
But hold a second. You said you have five cars that together cost less than the RAV4 the OP is thinking of buying. New Tesla's go for at least 40K or much more. Plus 4 other cars. Unless your other cars are total junkers you are looking at 60K or much more. My guess would be someone with a new Tesla does not have a 2nd car or any car that is a 1983 Ford station wagon or a 92 Buick Century.
A RAV4 starts at 26K. Your math does not add up.
It is, because the Tesla is currently on a 1.5% finance with just $8k down. My other 4 cars were all paid under $4k each.
jerseygal4u hasn't returned for four days, or seven pages of comments. All of the good advice was wasted, she is not going to listen to any more, her forever underwater little heart is set on the shiny new object and nothing shall deter her. Underwater and in debt is her future...
I was going to say the same yesterday. She's logging into CD but not replying
Not sure anyone can help by suggesting the best way to go but I would appreciate it. My wife made a terrible decision two years ago by trading in her car for a new 2018 Mazda CX-5. The dealer took advantage of her naivete and long story shory, she's about $8000 upside down/underwater on her loan. Right now, her car is probably worth around $21K and she owes $29K. Her credit is poor to fair but she has a good job and a history of steady earnings.
Now, the best thing she could do would be to stay in the car until it's paid but of course, that's advice for reasonable people. Short of that, if she wants to get another car, slightly less expensive, such as a late model VW GTI for say, $17K, what would be her best option? I know a dealer bank wouldn't be able to roll the negative equity in to the new loan so, which of these scenarios would be better?
1. Taking out a loan of some sort for $8K and paying donw the principal on her Capital One car loan and THEN, trading it in?
2. Doing the above but using $8K as downpayment? I know this is almost the same.
Not sure anyone can help by suggesting the best way to go but I would appreciate it. My wife made a terrible decision two years ago by trading in her car for a new 2018 Mazda CX-5. The dealer took advantage of her naivete and long story shory, she's about $8000 upside down/underwater on her loan. Right now, her car is probably worth around $21K and she owes $29K. Her credit is poor to fair but she has a good job and a history of steady earnings.
Now, the best thing she could do would be to stay in the car until it's paid but of course, that's advice for reasonable people. Short of that, if she wants to get another car, slightly less expensive, such as a late model VW GTI for say, $17K, what would be her best option? I know a dealer bank wouldn't be able to roll the negative equity in to the new loan so, which of these scenarios would be better?
1. Taking out a loan of some sort for $8K and paying donw the principal on her Capital One car loan and THEN, trading it in?
2. Doing the above but using $8K as downpayment? I know this is almost the same.
3. Something different?
Thanks very much in advance.
Save up $5k cash. Sell the car for $21k. Use the $5k cash to buy a beater that will last for 2-3 years. Pay off the $8k remaining debt. In 2 years or so, she'll be debt free and have the space to save cash for her next "good" car.
I recently traded in a car which I was carrying 4K in negative equity on. Difference is, I traded it in for a vehicle from the same manufacturer that had 8k in rebate/incentive along with 0%. My monthly payment actually went down and traded up for a much better vehicle in the process.
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