Originally posted by: griffis
Originally posted by: z0mb13
Originally posted by: griffis
Originally posted by: waggy
Originally posted by: spidey07
Originally posted by: griffis
As an update to those who thought it could not be done, I traded in my car and got a brand new 2007 Nissan Xterra for a close to same payment as the car I had, plus my insurance didnt even budge. So, it is possible!!
How much does the car actually cost you and what are the financing terms?
exactly.
sure you can get in at the Same $$ a month. they just put it out fof 7-9 years with higher interest.
so can we get the info since you are claiming it?
Same terms as before, 60 mos at 6.9%, cant complain.
ok let me get this straight, you to make a NEW 60 months payment on your new car, correct? What was your old car? How many months of payment have you paid for your old car?
This is usually how trades work. Old car 2005 Scion TC, paid about 3 years on it.
I understand perfectly how car trades work:
- a person buy a first car on a loan, agreeing to pay x amount upon the agreed interest rate and term. Dealer (or company that provide financing for the car) makes money from the interest. If the person defaults, the dealer repossess the car, auctions it to get whatever value to recoup the debt, and will go after the personfor the remainder amount of the debt.
- after the person makes payments on the car for some period of time, he decides the car is old and wants to get a new one (or for whatever reason). Person's way of thinking: gee, I can get a brand new (better) car for the same amount that I am paying each month! Great deal!
- person then goes to a dealer, who is more than happy to "trade in" person's old car at a lower value than if person sells the car himself. Dealer then profits by selling person's old car to another buyer in the future. Dealer then puts person in a new car, after an agreed x amount of payment each month, at some interest rate for some term. Person thinks: Gee I am getting a great deal! same amount of payment but I get a new car! Person does not realize (or does not care) that there is a NEW payment term. so if person had paid 2 years to built an equity in their old car, those 2 years are gone.
- lather, rinse, repeat
This is PRECISELY why some people are ALWAYS in debt. Those x amount of payments that you make every month, how hard is it to actually put it in a bank account (and watch it grow earning interest) THEN buy a new car after the money is enough? You are saving yourself a heck of a lot money in interest.
But then people say, I need a car for work! yes that is true, but you dont NEED a new car every 2 years. People can survive by buying a used car, or heck buying one car on loan and running it to the grown.
People get rich by NOT paying interest to other people, they get rich my EARNING interest/income for their money.
There are good debt and bad debt, a mortgage is a good debt, also is a school loan, but a car loan is NOT a good debt.
IMO now getting a debt might be TOO easy for the average people, so that they utilize it to no end (and keep themselves further in debt)