You never make money on a car, plain and simple. Unless it was almost paid off, I would see your point.
Originally posted by: Capt Caveman
60 months at 6.9%?????
You trade in a 2 years worth of payments for 5 years. Wow, that's terrible. Should have at worst, taken a home equity line of credit or loan. At least the interest is tax-deductible.
Originally posted by: griffis
Originally posted by: spidey07
Originally posted by: griffis
the old car had been paid for about 3 years out, had about two years left on it. They paid off the trade and then i started anew with the new car. Typical trade.
You got the dealer treatment. Sorry, but they screwed you.
A typical trade is where they give you MORE than the payoff of the car, because the car SHOULD be worth more than the payoff.
Think about it this way, you owed two years of payments on your car. After that you owned it outright and could sell or trade for a pretty penny. Now you are in more debt than you were before, but longer.
I bet it went something like this..
"how much do you want to spend per month?"
"same as I'm paying now"
*dealer tries to withold mental orgasm of a fresh fish he's getting ready to pull into the boat*
"great, I'll just call up your bank to see what your car is worth. Ok, it's woth 7K, We'll take care of that. Now how much do you want to spend per month again?"
I got 12,500 for the car and only owed 10,500. They tried to only give me what was owed and I said no. Again, not as dumb you might think
Originally posted by: griffis
<blockquote>quote:
Originally posted by: iamwiz82
<blockquote>quote:
Originally posted by: maddogchen
why not sell it yourself? you get more money i think.</blockquote>
Too many tire kickers and low ballers out there to make it worthwhile to me.</blockquote>
i agree with this, usually more of a hassle going this route
Originally posted by: z0mb13
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)
Originally posted by: griffis
Originally posted by: Capt Caveman
60 months at 6.9%?????
You trade in a 2 years worth of payments for 5 years. Wow, that's terrible. Should have at worst, taken a home equity line of credit or loan. At least the interest is tax-deductible.
You never make money on a car, plain and simple. Unless it was almost paid off, I would see your point.
Originally posted by: Capt Caveman
Originally posted by: griffis
Originally posted by: Capt Caveman
60 months at 6.9%?????
You trade in a 2 years worth of payments for 5 years. Wow, that's terrible. Should have at worst, taken a home equity line of credit or loan. At least the interest is tax-deductible.
You never make money on a car, plain and simple. Unless it was almost paid off, I would see your point.
You don't get it. Of course, you don't make money on a car. But if you add up, the total financing cost of your old vehicle and your new one, you got suckered. Trading in a 2 year loan for 5 years is not smart. At worst, you should have taken a 3 year loan.
You could have saved some money by shopping for financing also. A home equity loan/credit line would have allowed you to deduct the interest on your taxes and save you a lot of money.
Originally posted by: griffis
I totally understand your point, but when you need a new car because your family is growing, I dont have time to invest. Also, equity in a car is pretty much nil if you think about it. I didnt walk in and say I want to pay this much, I foud a car I liked and said what can oyu do for me first without even mentioning a trade. I then brought the trade into the equation, saw what they were giving me for the car and said this will not work. We bargained about three times on the appraisal until I felt the terms and payment were agreeable. I walked away with $25,00 worth of a car for $20,000.
Originally posted by: griffis
Originally posted by: z0mb13
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)
I totally understand your point, but when you need a new car because your family is growing, I dont have time to invest. Also, equity in a car is pretty much nil if you think about it. I didnt walk in and say I want to pay this much, I foud a car I liked and said what can oyu do for me first without even mentioning a trade. I then brought the trade into the equation, saw what they were giving me for the car and said this will not work. We bargained about three times on the appraisal until I felt the terms and payment were agreeable. I walked away with $25,00 worth of a car for $20,000.
Originally posted by: Capt Caveman
Originally posted by: griffis
I totally understand your point, but when you need a new car because your family is growing, I dont have time to invest. Also, equity in a car is pretty much nil if you think about it. I didnt walk in and say I want to pay this much, I foud a car I liked and said what can oyu do for me first without even mentioning a trade. I then brought the trade into the equation, saw what they were giving me for the car and said this will not work. We bargained about three times on the appraisal until I felt the terms and payment were agreeable. I walked away with $25,00 worth of a car for $20,000.
I'm going to guess you didn't research the actual invoice price of the Xterra and negotiate from that price than the dealers MSRP.
Originally posted by: waggy
Originally posted by: Capt Caveman
Originally posted by: griffis
I totally understand your point, but when you need a new car because your family is growing, I dont have time to invest. Also, equity in a car is pretty much nil if you think about it. I didnt walk in and say I want to pay this much, I foud a car I liked and said what can oyu do for me first without even mentioning a trade. I then brought the trade into the equation, saw what they were giving me for the car and said this will not work. We bargained about three times on the appraisal until I felt the terms and payment were agreeable. I walked away with $25,00 worth of a car for $20,000.
I'm going to guess you didn't research the actual invoice price of the Xterra and negotiate from that price than the dealers MSRP.
nope. by the looks of it he paid KBB prices (depending on model).
while he got screwed he did not do as bad as we though considering his first post in the thread.