Author Topic: Car Financing Questions (Read 246 times)

BlckMgk · « **on:** September 12, 2004, 03:12:46 PM »

Well I recently purchased a new car, 5,000 down, and I'm financing it for 4 years.

What would be my options if I'd like to get a new car, i.e. trade this one in?

Would I need to pay off the car first before moving on? Then get a depreciated value trade in on the car?

Thanks in advance folks
-BM

parker00 · « **Reply #1 on:** September 12, 2004, 03:42:23 PM »

You can always trade any car in that's worth something. If you still have a balance left on the loan, they can carry it over to your next loan if you don't want to pay it off first. Myself I'd pay it off and drive it till the end and then push it to the car lot, but that's just me. I bought a new car last year and the car lot told me it would be better not to trade in, just because they were not giving much since new cars had 0% interest and they were having trouble selling used cars. It really depends on what you want from your trade in, it may be better to sell it outright and take what you have left and buy a another one. Just an option!!!

Dago · « **Reply #2 on:** September 12, 2004, 04:38:36 PM »

If you buy a new car, pay it off as quickly as possible. If you can't, and want to sell it, do it before it reachs 60k miles. Value drops quickly after 60k

Financially if you buy a new car, you should drive it at least 10 yrs before selling it.

dago

Chairboy · « **Reply #3 on:** September 12, 2004, 04:49:23 PM »

A new car is a bad investment. Don't buy a new car, the value drops hugely the moment you drive out the lot. Let someone else who isn't as smart (or is a lot richer) pay the depreciation for the first year or two, THEN buy it.

You get a car that's essentially new, the mechanical stuff has been worked out (new cars usually have at least one thing that needs dealer attention), and you pay half as much as the sucker that bought it off the lot.

J_A_B · « **Reply #4 on:** September 12, 2004, 06:23:49 PM »

In terms of financial sense, the best thing to do with any car--new or used--is to drive it until it's ready for the junkyard.

If you want a new vehicle while you still owe on you current one, they generally tack the balance onto your new financing.

I tend to be of the opinion that automakers are gradually pricing themselves out of the market; I can't think of a single new vehicle that is actually a good value. They're all disgustingly overpriced now.

J_A_B

Gunslinger · « **Reply #5 on:** September 12, 2004, 06:58:59 PM »

I look at buying a new car like this:

Buying a NEW car is a BAD investment. Would you take out a loan to by a 1000 shares of stock at $25 a peice knowing full well that when you go to sell those shares in 5 years they're probably going to be worth around $5 a piece AND you paid interest the WHOLE time you owned them.

Also people that buy a car for the warrenty don't usually take into account that for $25,000 you can rebuild a used car almost 3 times over.

The average american pays $389 a month for a car payment. If you took $389 a month and invested it with a 10% return over 40 years you would be a multi millionare. Hope you that "new car smell" was worth it.

just my $.02 on car buying

SirLoin · « **Reply #6 on:** September 13, 2004, 06:36:59 AM »

Yeah,but if you buy a new car and keep it 12 years(or longer) then it is a wise purchase..To trade it in every 5 years..well it helps the auto industry while you never pay down the house as fast as you should.

nuchpatrick · « **Reply #7 on:** September 13, 2004, 07:45:40 AM »

If you want to change cars every few years a short term lease would be better for you.

But then I traded in one SUV in less then 11 months because they couldn't figure out why it had a vibration, six sets of wheels & tires and the thing still had a vibration from hell. Needless to say I'll either sick with Jeep's or Tahoes.