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Inheritly Sinister
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Discussion Starter #1
Okay, I am mentally ill. Right now I have delusions of owning a 2.3l Focus (I guess sparked from FC's initial findings/work).

2004 model information should start becoming availible in late-August/early September. So, that gives me about 4 months. (probably more, since I don't know when I would take delivery)

This would also let me order a model the way I would want it, stripped down to save weight (and also money). Also, I have a chance to acquire a better interest rate.

However, I currently owe a little over 9k, and I'm hoping for a trade-in at around 6k (as of right now). I'm making payments of 282 a month to my credit union where I work (which is at 6.5% I think, the best I could have gotten anywhere at the time).

I'm planning to go there to speak to them about upping my payments, so I can try to reduce the deficet between what I owe and what I can get. I'm thinking 380 a month is easy, but would that be enough?

Or, should I roll the difference into the new car's loan? I would think it would be better to pay what I can now.

I also plan to drive my beater as much as possible to keep the milleage low. Currently at 27,000 mi. I also have all my original parts, so I can revert it back to normal. (I plan to keep my all my suspension bits, and sell the engine bits)

Who knows... by September, I may not want it any more. But if I did, I figured planning ahead could help.

What is everyone's opinion and/or suggestions? I've never traded a car in before, so anything is helpful.

Thanks.
 

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Pay what you can now to avoid rolling in a lot of negative equity on the new loan.

When the 04's come out don't expect any huge rebates like they have now, so you need to help yourself as much as possible by paying down what you can now. As far as financing, on 60 months, for every $1000.00 you borrow, figure on paying back $20/month--thumbnail math but it gets you close. If your credit is good, you can usually finance 110-120% of MSRP on a new car--but that has to include any taxes and/fees that are applicable to the transaction.

Your trade car will be worth more when it is appraised/traded as stock, so make sure you switch that before you go to order out the 04. We dealers will probably have order info in late June or early July--figure on a delivery in September if the modelyear changeover is "normal".

Lemme know if you have any other questions
 

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Inheritly Sinister
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Discussion Starter #3
Well, speaking to some co-workers, they feel its better to take that 100 bucks that I was going to apply to my montly, and just save it, and use it as part of the down payment. That way, I can accrue what little interest I can.

Plus, one person thinks they would give a little more on a trade-in if I owe more (~3k), than less (~2k). Personally, I wouldn't think dealers would care.

What's your take on this? Thanks!

EDIT: Plus, maybe I should consider CarMax or private sales to sell the car...

[ 04-17-2003, 09:44 AM: Message edited by: Egz ]
 

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Any chance of re-financing at a lower rate?
 

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Well, I'd say you should pay off whatever you can right now. Bump your payment up to whatever is comfortable for you, not too much so that you're flat broke. Also I'd sell what you have to sell now, and whenever that cash comes in, slide it on over to a payment for the car. That way you can sell the parts and not be so rushed by needing the cash "right now." if you get $750 then thats 750 less you'll pay later.

I don't know if you're like me, but if I took the money and saved it up, when I bought the car and they started talking how little down I'd need to spend I'd start thinking about all the parts I can buy with that cash I have saved up if I only use half of it for a down. Thats a dangerous place to be, you don't want to be paying for your old car for another 6 years.

So lets do some math:

Owe: 9000
payments between now and september: -1400
Parts sold: -750

Total: 6850

Its shy of your possible trade in value, but if you let them take you for a little bit of a ride on the car you might get them to outright take the car in for $6800.

Whatever way you decide to do things, don't mention the trade till after you negociate price. Then negociate the trade in. That way you'll have more leverage with them.
 
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