??? WTF Trade-In value
#21
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actually
I figure that I will keep it until the economy picks back up and trade it.
#22
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370
I'm not really a fan of the 370 in person though. The nicest part of the 370 is the interior... a much nicer upgrade than what we currently have... the fit and finish look very sharp, but the exterior lights and front fascia are horrid in my opinion.
#27
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Sorry for the newb question abt trading in cars. If you still owe the bank more than what they offere you for trade in, how does it work in paying the monthly payment on ur new and traded in car?
#28
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in SOME cases you can roll over the upside down balance on to the new car loan.
usually, this exceeds the banks loaning limits (example, some banks will loan you 120% wholesale value of the new car), you are expected to pay cash for what the bank will not cover as a down payment. if you can't, tough dookie.
you don't want to roll over upside down loans into a new loan, that just makes you that much more stuck with your new car. do yourself a favor and pay it down.
usually, this exceeds the banks loaning limits (example, some banks will loan you 120% wholesale value of the new car), you are expected to pay cash for what the bank will not cover as a down payment. if you can't, tough dookie.
you don't want to roll over upside down loans into a new loan, that just makes you that much more stuck with your new car. do yourself a favor and pay it down.
#32
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He wasn't saying he was trying to break even...Base price for a 370 is $29,930...plus tax, dealer add ons, and market adjustment(because no dealer in the world will sell it for invoice, and most mark them up an additional 5 grand on top of MSRP when they are first released). So what hes expecting to get, 25-27 grand, is no where near what a 370 costs....
#33
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Here is an interesting depreciation calculator. It actually is pretty accurate.
http://www.money-zine.com/Calculator...on-Calculator/
#34
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If you were expecting less than 1/3, then you don't have a very strong understanding of depreciation. The fact that you were even considering trading in a car just a bit over a year after buying it new to buy another new car, tells us that you either have more money than you know what to do with, or you really don't understand depreciation at all.
Here is an interesting depreciation calculator. It actually is pretty accurate.
http://www.money-zine.com/Calculator...on-Calculator/
Here is an interesting depreciation calculator. It actually is pretty accurate.
http://www.money-zine.com/Calculator...on-Calculator/
And btw, since that calculator is "pretty accurate" the trade-in value of the car should be approx. 25k... but maybe that's just me and my poor understanding again...
Last edited by Roper215; 01-10-2009 at 07:16 AM.
#35
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This is just one reason that car loans are risky ventures. BTW, the same happens if you get in an accident and the car gets totalled (whether it is your fault or not). The insurance company will pay you market value for the car, but you may still owe more on the car than it is worth. In this case the insurance company would pay you $18k but you would still owe $20k to the finance company which will want their money right away since there is no longer a car to serve as collateral on the loan. This is why some will buy "gap insurance". This covers the difference between the present value of the car and the amount that is still owed on the car.
Also, just in case you didn't know, the situation where you owe more on the car than it is worth is called "being upside down" on the loan.
#36
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On the calculator, I'm guessing you figured your car at 1 year old at the low depreciation rate. Your car is over a year old and with the current economy depreciation of cars has been exceptionally high.
If you are used to the resale values of BMW's and Acura's then money may not even be a consideration.
#37
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