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#2082 of 2121 Re: upside down trade in [solitaire]
Nov 15, 2008 (4:07 am)
Hey all,I need some advice,
Man...'8sparkplugs' is a mind reader. He was talking to you in post 2080 before he was actually talking to you. Some guys that hang out here are good!!
Your answer lies in that post.
#2083 of 2121 Re: upside down trade in [jmonroe]
Nov 15, 2008 (5:15 am)
2080"While true, this has been the driving force for the sales volume. The problem the car industry is going to have is that people buy cars mostly based on want, not need. Most people don't need a new car every few years. Cars are built to last a long time, and if people keep them twice as long, then that would be alot fewer new car sales. Not to mention the people who could, but now can't get financing. The inability to get people with poor credit financed will be a huge loss to dealerships. They often tend to be the least informed buyers"
sorry, can't find an answer there. Credit is not the problem, keeping the car is. It's over 100k miles, and I can tell you, this one doesn't look like it's built to last. The repairs never end, and I can't afford to keep it!
#2084 of 2121 Re: upside down trade in [solitaire]
Nov 15, 2008 (6:24 am)
I think his answer is to keep the car as you will just get yourself more upside down trading it in.
You say that the repairs never end but for $4k you might be getting another endless repair car (even a Honda). You may be going from the frying pan into the fire.
The question I have is what is your monthly car payment and average monthly repair bill? Would getting into another vehicle be less than that? Also if credit is not a problem why are you buying low end?
One final question, if you were looking for a $4k Honda why did you buy a $10K car?
#2085 of 2121 A possible alternative solution
Nov 15, 2008 (7:38 am)
You're better off buying another $2K beater car for cash than getting rid of the Audi on an upside downtrade - if you can get one these days. Sure the beater won't look so good in the driveway, but one of the two cars will always be running, while you look for the cheap way out on the repairs on the other. The beater only gets liability insurance and so will be cheap to insure. The Audi won't get so many miles on it and will be less likely to break down on you. Just drive it when you care what people will think of you when you pull up. Make it into the Saturday night/ Sunday morning car.
This approach will cost you less in the short term and the long term than flipping what you owe on the Audi into a new loan. Think about it. If you owe money on the Audi when you trade it, that debt isn't going away. Add that debt on the the cost of buying the new car, and you're worse off than you were before because you're paying off two debts. You're probably already on a 60 month loan so you're not going to be able to stretch out the payments to get them lower each month.
Better to dig your way out this time than next time when you'll only be farther upside down.
#2086 of 2121 Re: upside down trade in [solitaire]
Nov 15, 2008 (8:19 am)
At a $4000 trade in value, what are my financing options should I find a car at 4k or less... could the difference be transferred over?
Banks won't loan you $10k on a $4k car. Not these days.
Lokki's idea is pretty good, buy a beater and drive the Audi less, or drive the beater and try to retail the Audi.
#2087 of 2121 Re: upside down trade in [solitaire]
Nov 15, 2008 (9:47 am)
I still owe $6000 on the audi, and trade-in looks like the best option. At a $4000 trade in value,
Keeping a car that constantly needs repairs is a losing proposition....and getting a cheaper beater could give you a lot of debt and little use.
Sounds like if you trade in the Audi and get 4k but owe 6k you will have 2k of debt.
If you are set on a Honda why not check out a 2 or 3 year old model. At least you will have a reliable car and won't be spending money on a car that is unreliable and will constantly need repairs. Another option would be to lease with a buy back option when you might get your finances in order.
My ideas are different than most. I have seen too many friends pour money into used cars, and every time they spend $1000 they say well this will be the last time I do it......but they keep doing it thinking it will be the last time. The money spent could have gone to buy a new or almost new car.
Cars are like bad movies. If a movie isn't good in the first 20 minutes it usually doesn't get better and I won't waste another 2 hours of my valuable life on it. Same with a car, when they start needing lots of money, it seldom gets any better.
#2088 of 2121 Re: upside down trade in [driver100]
Nov 15, 2008 (10:18 am)
The best bang for your buck would be a 4 or 5 year old Buick . Considering the amount of money to be spent, I would say a 8 year old Buick with medium miles, should be both reliable and inexpensive.
#2089 of 2121 Re: upside down trade in [jipster]
Nov 15, 2008 (12:59 pm)
The best bang for your buck would be a 4 or 5 year old Buick . Considering the amount of money to be spent, I would say a 8 year old Buick with medium miles, should be both reliable and inexpensive
There's quite a few good reliable cars that you can buy pretty cheap...Buick is one. A guy at work (very careful with his money) just got a 2005 Ford 500 with 50,000 miles for $7200 and he can get a one year warranty for $450 - 2 year for $1000. These cars should hold up pretty good....larger models from GM and Ford usually rear wheel drive for simplicity and for a longer life. Not so sure about Chryslers though every once in awhile they come out with something that lasts...like K cars I still see around.
#2090 of 2121 Re: upside down trade in [jipster]
Nov 15, 2008 (1:40 pm)
You also have to remember that a lot of people use an unexpected repair or two as an excuse to "need" a new car. I don't know if that's the case here, but I see that a lot with my friends and co-workers.