Question to you guys (especially the salesmen)

1280 Views 16 Replies 10 Participants Last post by Obike, Feb 17, 2006

tCfiend

Discussion Starter · Feb 16, 2006

Hey everyone,

I'm in a bit of a jam. I'm 21 years old, and finishing up my last year of college. Right now, I'm living at home with my parents. They will be moving to PA (I live in NJ now) within the next few months. I did not know this when I bought my tC just 2 months ago. So anyway, I'm going to be having to find a place to live on my own, so needless to say, I need to cut some expenses. I put zero down on my tC, and so far I've only made 2 payments. The amount financed for the tC was $21,609. My monthly payments are $424.

As much as I would hate to give up this car, I may have to do it, if it's possible. I was thinking of finding a used '05 Corolla which I would hope to get for around 12 or 13G's. Financing this over 5 years would run me roughly $250 a month. This is much more doable than the $424 a month I'm paying for the tC.

My question to you guys (especially those familiar with trade-ins) is: is this at all possible? I've never done a trade in, so I really have no idea how that works? Does my idea seem logical? Are my estimates accurate? Was my last question an oxymoron? Are you tired of reading all this babbling?

Any feedback would be greatly appreciated.

1 - 17 of 17 Posts

Shep

· #2 · Feb 16, 2006

Who needs an appartment? Live in your car!!!!!!

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moriarty

· #3 · Feb 16, 2006

the best thing you can do is go down to the dealership and see how much they will buy your car for.

additionally, check car max.
put your car in the local papers and online.

you are going to lose on your tax and licence for sure. but, you should get a really strong trade. most dealerships would like to get a tC on the used lot.

something to remember, some of the items you put onto your car will not get you anything on the trade. if you know somebody who will buy some of your gear from you and give you can put back on some stock parts, you might find yourself better off.

the only thing you can really do is see who is going to give you the best price and count some losses.

corolla's are cool too.

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tCfiend

Discussion Starter · #4 · Feb 16, 2006

but do you think my calculations are accurate?

moriarty

· #5 · Feb 16, 2006

yeah, sounds close. figure on 20 dollars per every thousand borrowed.

serith

· #6 · Feb 16, 2006

Your Purchase: $21,609
Your APR: ~7% (If you're on a 60month loan)
Your Car's Resale Value to a dealer: ~$16,500 (you'll get a couple thousand more if you decide to sell it yourself)
Your Negative Equity: (Assuming you only made two payments so far, and only half of that money was applied to the principal financed) $~4700
New 2005 Corolla: (Pretend you can find one that you like with the right tranny, color, etc.. that's $12,000) $12,000
Real Price of that Corolla: (new price + negative equity from tC) $16,700 (funny how we're back to what a base tC costs, eh?)
Your old monthly payment @ 7% for 60mo - $424/mo
Your *approximate* new payment @ 7% for 60mo - $331/mo

I hope that helps. And I'm no car salesman, or finance manager, but I know how this stuff works. It's not rocket science.

iGod

· #7 · Feb 16, 2006

yeah, serith is pretty much on the ball. from a dealer standpoint, trading in your tC is going to cost you dollars. a lot, one way or another.
i suggest making your payments for 6-8 months, then refinancing your car. suck up the tax and license again (it will be lower the second time around) and drop your rate so your payment drop. 6-8 months into a loan is a good time to start looking at that option. it will not happen before then.

tCfiend

Discussion Starter · #8 · Feb 16, 2006

thanks guys, i got responses alot faster than i expected

Basically, if im not saving AT LEAST $100 a month than its definitely not worth it

serith

· #9 · Feb 16, 2006

Originally posted by inevitablegod@Feb 15 2006, 11:42 PM
6-8 months into a loan is a good time to start looking at that option. it will not happen before then.

Word.

D, I just wen't from $333/mo @ 14.6% (no credit at the time of purchase, but I put $8,000 down), to a nice $239/mo @ 7.25% for the same term--5 years. It just feels so much easier.

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krdshrk

· #10 · Feb 16, 2006

Try refinancing your loan maybe? Get a lower APR or longer terms? That'll cut down the per-month payment and you'll still have the car.

filmnews

· #11 · Feb 17, 2006

You cant refinance a loan this soon. You need to pay on the loan for at least 6 months, to a year. I am afraid you are going to lose a lot of money on this deal. You are not going to get anything close to 21K for a used Scion. I suggest you look for a second job.

SpeeedTc

· #12 · Feb 17, 2006

Or maybe dont sell the car? and find another way to make money? or get a less expensive apartment.

tCfiend

Discussion Starter · #13 · Feb 17, 2006

didn't some girl on here get 19,000 for her tC from a dealer?

iGod

· #14 · Feb 17, 2006

Originally posted by serith+Feb 15 2006, 11:58 PM-->QUOTE (serith @ Feb 15 2006, 11:58 PM)

<!--QuoteBegin-inevitablegod

Click to expand...

@Feb 15 2006, 11:42 PM
6-8 months into a loan is a good time to start looking at that option. it will not happen before then.

Click to expand...

Word.

D, I just wen't from $333/mo @ 14.6% (no credit at the time of purchase, but I put $8,000 down), to a nice $239/mo @ 7.25% for the same term--5 years. It just feels so much easier.

[/b]

ah, good to know it works. that rules. way to go.

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OliverThomas

· #15 · Feb 17, 2006

Originally posted by inevitablegod+Feb 17 2006, 12:16 PM-->QUOTE (inevitablegod @ Feb 17 2006, 12:16 PM)

Originally posted by [email protected] 15 2006, 11:58 PM
<!--QuoteBegin-inevitablegod

Click to expand...

Click to expand...

@Feb 15 2006, 11:42 PM
6-8 months into a loan is a good time to start looking at that option. it will not happen before then.

Click to expand...

Word.

D, I just wen't from $333/mo @ 14.6% (no credit at the time of purchase, but I put $8,000 down), to a nice $239/mo @ 7.25% for the same term--5 years. It just feels so much easier.

Click to expand...

ah, good to know it works. that rules. way to go. [/b]

Oh, wow.

So I could refinance already? I'm desperate to get my payment down, I'm at 410.00 a month for 60 months. "VE been paying for about 10 months on the loan... I figured it wasn't worth it to refinance until you had paid like, half the car off....

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iGod

· #16 · Feb 17, 2006

it is totally worth looking into.

Obike

· #17 · Feb 17, 2006

No point for me to refinance... $350/mo at 4.59%. I <3 USAA. That was with no money down as well. The car will be completely paid off by the end of this summer.

1 - 17 of 17 Posts

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