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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.
Any advice?
If you're putting $8,600 as a downpayment on the new vehicle, you shouldn't be rolling the $15,000 negative over anymore. You should be rolling $7,000 (roughly) into the new car. Paying down the loan on the old car or putting the money into the new loan doesn't matter, it gets you to the same place.
That said, paying almost $700 per month (almost $50,000 over the life of the loan) on a compact SUV is a monumentally bad idea. That's what I pay for my GMC pickup truck, which had a sticker price of $62,000.
"When you find yourself in a hole, it's best to stop digging."
Every month, take the difference between what you are paying now and what you would pay on the Rav4 you want and save it. Don't touch it. Then when the wheels finally fall off of the Corolla, take the money you saved and put it down on an inexpensive car. Never, ever, under any circumstances, get underwater on a car again. It's one of the dumbest financial moves you can make.
It doesn't add up that much. I'm paying $200/month for 5 cars, one of them is a brand new Tesla.
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.
Last edited by Oklazona Bound; 05-20-2020 at 04:40 PM..
The only reason i considered the new car was because it has a lifetime warranty on the powertrain. The corolla does not.
Plus,by the end of this year the car should have 200000 miles in it
Used cars never work out for me.
I put 20,000 miles on it and an expensive repair happens.
i have not read all of this thread, because I could tell from the first page where the conversation was going, so why bother.
OP, the lifetime warranty is on the same powertrain that you basically already have. Meaning, it's not like Toyota just figured out a whole new powertrain to use within the last 36 months that is any better than the one you've got. Cockroaches will be driving your car after we've all been wiped from the earth's surface some day. So to correct your statement about not having a lifetime warranty - yes, you do have one, it's called the Toyota Corolla warranty, and it is hands down the most reliable one in the entire history of cars. Just keep the transmission fluid changed as prescribed, and keep on keeping on with the car until it gets to a point where the value can't go any lower.
Just keep the transmission fluid changed as prescribed, and keep on keeping on with the car until it gets to a point where the value can't go any lower.
Great advice.
Sadly, few/some don't even follow this advice. Even "lifetime" fluid should be changed according to owners manual.
If you're putting $8,600 as a downpayment on the new vehicle, you shouldn't be rolling the $15,000 negative over anymore. You should be rolling $7,000 (roughly) into the new car. Paying down the loan on the old car or putting the money into the new loan doesn't matter, it gets you to the same place.
That said, paying almost $700 per month (almost $50,000 over the life of the loan) on a compact SUV is a monumentally bad idea. That's what I pay for my GMC pickup truck, which had a sticker price of $62,000.
"When you find yourself in a hole, it's best to stop digging."
I would save the 8600 bucks and put it away. Just make the pay,EMTs on that car drive it till it’s paid off md then keep it till it does. Keep addding. Little s much as you can to that 8600 dollar account. When that car does, junk it or sell it while it’s still running and then go buy a cheaper car cash with SOME of that money in that account. Buying a suv with a $700 a month payment is monumentally epically stupid. Especially if you’re rolling over 15k in negative equity.
Quote:
Originally Posted by unit731
Great advice.
Sadly, few/some don't even follow this advice. Even "lifetime" fluid should be changed according to owners manual.
Lifetime fluid is nothing more than a marketing scheme by manufacturers to make their cars seem like they have no cost of maintenance. I mean tell someone hey you gotta buy the car for 45k now you gotta do $200-400 worth of maintenance every 15/30,000 miles. The most I let a fluid sit in a ca is 30k. That’s usually transmission, axles, coolant brake and power steering. It takes me a few hours to do drain and refills. I installed axle diff covers that have drain plugs.
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.
Any advice?
You badly need a Dave Ramsey.
1) Forget the RAV4.
2) Keep driving the corolla.
3) If 1&2 are not possible, sell the corolla off to a private party and pay the loan off.
4) Buy a RAV 4 at 0%. Its insanity to pay interest at this time when you get free checks from the government.
and don't ever negotiate the price of your used car before the price of the new car. get a number on the new car first otherwise they just move goal posts. and you're probably better off selling your car privately anyway.
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