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How about keeping the car and paying it off, then saving enough to get a new car then buying a better used car instead.
That's what I would do..! If you owe 14K on you're car, you aren't ready for a new one. Drive it a few more years and enjoy watching your saving account grow. The new car thrill only lasts a month or two, the payments last for years...
Cars are a terrible investment, only spend money on a car when absolutely neccessary, and then make it a good used one....
And I'm half way retarded I guess but hear me out.
I went to trade in my car and was going to get 1k less than what I owe. I owed 14.1k and was going to get 13k from them and putting 1k down. But things weren't working out and I asked if it would be easier to sell my car. I had someone that wanted it and was going to pay me 14k for it. But the loan guy got on the calculator and said aloud, fourteen thousand times 8.25%. No it wouldn't be better because you would come out ahead a little over $100 after taxes. I guess he was looking at the numbers he had on the trade in plus the new car numbers.
I don't understand how getting enough to pay the car off by private party over trading it in and being 1k upside down isn't better. But can someone explain what they meant by the taxes. I thought you pay taxes if your the buyer when you go to the tax office for the plates. It's not like it was paid off and I was going to put 14k down which would have lowered the price of the new vehicle thus lowering my state sales tax. I was going in upside down increasing my sales price before putting anything down, no?
Quote:
Originally Posted by Wilson513
How about keeping the car and paying it off, then saving enough to get a new car then buying a better used car instead.
in bold and by new car I meant for me. I'm selling it to him Tuesday. I do not buy my cars new.
As soon as you see a car salesman with a calculator beware. Those guys can do mathematical illusions that Einstein couldn't figure out .Do your own math.
PNW, yes that is what I think they were saying. But sure I'm out a few bucks but they in turn have a car they will turn around and sell for at least 17k if not more and make at a minimum of 4k. I'm selling it Tuesday as long as the buyer doesn't back out. Then I'm going to save up for a nice down payment. I know I should just keep it to save money blah blah blah. I like having a different car every few years. And the one I'm trying to get is one I've wanted since I was a young lad.
As soon as you see a car salesman with a calculator beware. Those guys can do mathematical illusions that Einstein couldn't figure out .Do your own math.
NEVER trade a car and buy a car in the same transaction. You will get screwed on your trade or you won't get much of a discount on the new car.
ALWAYS treat it as two separate transactions. Don't even tell the salesman you have a trade in. Get the best price for the new car in writing before introducing your trade into the equation.
The new and used car departments are separate entities at a dealership with separate management. You can even sell your car to the used car department BEFORE looking at the new cars.
In the end, it's only money. Not worth spending hours to haggle over a few bucks at the end of the day. Go get your new car and enjoy life, you can't take it with you.
For those that say cars are a bad investment, then why do you want all of your cash tied up in it? I would much rather have a $350/month payment (8% of my month Net income) and keep the cash in my savings account, while I keep driving a new car every couple years. I didn't go to college and bust my ass for the last 10 years in my career to drive a 5+ old vehicle.
Guy that pays $30,000 in CASH for his new vehicle, drives it for 10 years and sells it for $5,000 drove that car for $25,000 in 120 months or $208/month. That doesn't include the extra maintenance needed that a guy with a new car doesn't need. Meh, I'll keep driving my new cars for $350/month. Buy the right car at the right time, you won't get hosed when trading it in every 3 years.
In Texas tae price agreed to then deduct the trade which you already paid taxes on when bought and that is what your taxed on.So i your case that would be 13K you would not pay sales tax on when trading in.Where I live that would be 1105 dollars less in taxes.
I saw one dealer who told a customer he would give him 5k for his old car if he bought a new one. Well the deal came down to them deducting 5 k off of the full list price and not the price that was painted on the truck, The sticker price was thousands higher than the sales price so they were stealing his trade....
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