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I currently have a 2005 Dodge Neon but after a few accidents over the past 2 years, I'm considering trading my car for another one, possibily a 2010 Mazda3. First of all, what could the trade-in value of the Neon be despite all of the past accidents? Two years ago, I was rear ended at a red light, but those damages, which came to be around $3000, were completely repaired. Another accident involved me sliding on an icy road and hitting a guardrail, putting a dent on my drivers side fender. That wasn't fixed and the dent is still there. The last accident, which I wasn't even driving at the time, was a front-end collision with damage consisting of a cracked front-end bumper and an out of aligned/bent hood, not to mention one of the radiator fans doesn't work and the powersteering pulley is cracked in half and needs replaced. There might be other damages hidden from view. I don't have a price estimate for that but it's likely going to be over $1000 to get it back to pre-accident condition. The price of the car was around $13,000 when I bought it in early 2006. Also, I'm financing my Neon and still have almost $5000 left to pay, so would I still be able to trade it in despite owing that much money for it?
I currently have a 2005 Dodge Neon but after a few accidents over the past 2 years, I'm considering trading my car for another one, possibily a 2010 Mazda3. First of all, what could the trade-in value of the Neon be despite all of the past accidents? Two years ago, I was rear ended at a red light, but those damages, which came to be around $3000, were completely repaired. Another accident involved me sliding on an icy road and hitting a guardrail, putting a dent on my drivers side fender. That wasn't fixed and the dent is still there. The last accident, which I wasn't even driving at the time, was a front-end collision with damage consisting of a cracked front-end bumper and an out of aligned/bent hood, not to mention one of the radiator fans doesn't work and the powersteering pulley is cracked in half and needs replaced. There might be other damages hidden from view. I don't have a price estimate for that but it's likely going to be over $1000 to get it back to pre-accident condition. The price of the car was around $13,000 when I bought it in early 2006. Also, I'm financing my Neon and still have almost $5000 left to pay, so would I still be able to trade it in despite owing that much money for it?
You likely have frame damage from the last accident. Most of the time I see ANYTHING radiator on an estimate, there is at least 4 hours of frame time needed. Trading in a damaged vehicle to a dealer is a really bad idea. They will say they need to spend 3k to fix it so they can sell it when they really only need at most half of that since they have agreed upon rates with shops. Plus, they often cut corners to make the car look good but has poor repairs. Used car dealers do this often. Estimates vary greatly nationwide however. For example, the SoCal rate for labor is roughly 40 an hour whereas NorCal is 80. SoCal estimates get alot more supplements and NorCal hardly ever does since the rate is so high, they try to get done right the first time. I know Arizona and Nevada are similar to SoCal but I can't speak for the rest of the country.
You will be lucky to get more than 2k for the trade in. Neon's have awful resell value as well. I'd highly consider posting it on craigslist. I also suggest taking the vehicle to Carmax to see what a "dealer" will give you. They gave me 1700 more than the dealer said they would for a trade in 3 months after I went to the dealer with my 30k tuneup needing to be done asap since I was at 30800.
Prior accidents do not adjust the value unless there was frame damage. The dealer will BS you and say it does but it doesn't has long as you used a shop which offers a lifetime warranty. Most shops only offer 1 year though.
I assume when you say 'frame damage' you are actually referring to unibody damage. Small cars like the Neon are not 'body on frame'.
To the OP: Damaged cars are not given much in trade in value. Your car is not worth a whole lot in its current condition. My guess is that you are WAY upside down on this car.
Plus you have to deduct damage ? 880 brings value to ? 1350 to 1450... If they don't test drive it. 1100 if they do drive it.
Trading it in FI guy would love to see you come thur the door. He will work his magic and will take the 5000 note add it to your new car note add 255.00 to it. Give the car to the used car department for 500.00 (pocketing that 500 in his pocket. and you will owe what on your new 2010 Mazda 3
watch the scam this is what it looks like... for the best model and the Basic... 4dr
5000
255
5255
--------
23500 Speed model specail
1468 tax
-328 tax discount for trade in
470 fee's
amount to FI
24826
+5255
30081
1000 Down payment required
29081 / 72 months 403 to 425
Any rebates assigned to dealer 500 1500 ? scam
........
or
14995 4dr sedan special
937 tax
-328 discount trade in
299 fee's
15961 total new car
5255 note added
21216
1000 down payment required
20216 / 72 months 281 to 292 payments
rebates assigned to dealer 500 or 1200 scam
... this is what it should be
2500 as is trade in
5000 owed
2500 to new note NO extra fee's for flipping the Note
13880 (14995 )
what the basic car should sell for at the end of the month
no extra's !
867.50 tax
-312.50 trade in tax discount
375.00 fee's title lic w/ tax (depending on your state)
25.00 girls in office fee
= 17210. 00 / 72 months 240 to 262 depending on the interest rate you can get....
ALSO if there is a rebate ! put it on the end of the deal or off the car price you agreed to 13880 rebate say 500 car you be 13380 ! or 16710 / 72 months 232 to 254 depending on interest.
Watch out for the deal of deals they happen every day people seem to give more cars away when they have the notes flipped on to a new car.
Sad but true.....
Can anyone verify anything written above, especially the pricing?
The pricing and scenarios you were shown are pretty accurate. However, you really don't want to do this as you will be in a permanent upside loan on the Mazda3. What I would suggest is shopping the car around and seeing what people will give you for a trade. Then figure out exactly what your pay off is and save that amount of money plus another $1k. Then, you can trade the car in and pay off the note balance with cash and still have a little left for a down payment.
Rolling in negative equity on car loans is never recommended and can also result in higher interest rates. This is something that people bury themselves with financially. If you can eek out driving the Neon for another year, all the better for you and don't trade the car until you won't be rolling in money to the new loan either by bringing cash to the deal or paying the loan off.
Rolling in negative equity on car loans is never recommended and can also result in higher interest rates. This is something that people bury themselves with financially. If you can eek out driving the Neon for another year, all the better for you and don't trade the car until you won't be rolling in money to the new loan either by bringing cash to the deal or paying the loan off.
Agreed 100%.
I am just curious because the last accident was not the OP's fault and it's not repaired. Are you waiting on an insurance settlement? Or, if it was a friend/relative driving, why have they not stepped up to pay for the damages? If you were not driving, this should not be your burden, as your property was damaged through no fault of your own. The dent in the fender is the dent in the fender, cosmetic, and will cost some, but not a deal breaker. At minimum, they owe you the repair costs, if not repair cost plus diminished value of your vehicle.
I would not go the negative equity route, either, since you can be completely buried by it when you have to trade for another car, due to a change in life circumstance, for example. If you were expecting a child and needed a safe, reliable, larger car, then you might have to do it, but out of preference for a non-damaged vehicle, I'd drive it for as long as possible to pay off as much as possible. Make it a priority in your budget after mortgage/rent, food, and health insurance, as in no other discretionary spending on clothes, gadgets, DVDs, eating out.
Also, check into the value of a good pre-owned Mazda. The 3 is a reliable and stable platform, so that you might not have as high a payment on one that's a couple of years old. There are minor styling cues that differ, but you never know what you could save in the difference. It's not like you are looking at a car with quetionable reliability where you would need the benefit of a warranty, unless you get a much better interest rate on the new Mazda. There seeem to be a good number of 2007-2008 models in the $12k asking range, at dealers, nicely equipped, so you might come out ahead if you can pay off as much as possible on the Neon and look to the best value on the Mazda, so that you don't have to add in negative equity and can pay off the Mazda in the shortest time possible.
It's financial suicide to be upside down in a vehicle, IMO, and should only be reserved for an extreme circumstance where you truly have no other option. If it's just a want, versus a need, I recommend looking to a longer financial picture, not how easy the car salespeople tell you it is to make the switch in the short term, since you don't want to still be paying this balance two cars from now.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
I currently have a 2005 Dodge Neon but after a few accidents over the past 2 years, I'm considering trading my car for another one, possibily a 2010 Mazda3. First of all, what could the trade-in value of the Neon be despite all of the past accidents? Two years ago, I was rear ended at a red light, but those damages, which came to be around $3000, were completely repaired. Another accident involved me sliding on an icy road and hitting a guardrail, putting a dent on my drivers side fender. That wasn't fixed and the dent is still there. The last accident, which I wasn't even driving at the time, was a front-end collision with damage consisting of a cracked front-end bumper and an out of aligned/bent hood, not to mention one of the radiator fans doesn't work and the powersteering pulley is cracked in half and needs replaced. There might be other damages hidden from view. I don't have a price estimate for that but it's likely going to be over $1000 to get it back to pre-accident condition. The price of the car was around $13,000 when I bought it in early 2006. Also, I'm financing my Neon and still have almost $5000 left to pay, so would I still be able to trade it in despite owing that much money for it?
And of course, PA rust never sleeps. I wouldn't give $500 for this car, myself.
IMHO if you want to drive a nice car without staying on the payment hamster wheel, you need to first get out of the rust belt...
I'd say drive the damn thing till the wheels fall off. That's the most value you can get from this situation.
Sorry if this comes across as harsh, but I'm just telling it like it is.
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