Financial questions about buying a car...

Discussion in 'Archived Threads 2001-2004' started by Tim Kline, Feb 9, 2003.

  1. Tim Kline

    Tim Kline Stunt Coordinator

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    Right now, I have a 2000 Pathfinder. It was $32,000, and I got a 5 year loan and I have exactly 2 years left, around $14,000 left on the loan. My interest rate is 4.9%

    I've been thinking about upgrading to a Chevy Avalanche and trading in my Pathfinder. I went to Kelly Blue Book's website and it says it's worth around $14,000 (what a cooinsidence).

    So, say I buy an Avalanche that's $35,000. When I trade in my Pathfinder, will it be worth anything to them since I still have the original loan to pay off? I don't have any money for a downpayment, all I have is the trade in. Right now, I'm paying $585 a month for the pathfinder (no downpayment or trade in when I bought it). Right now they're doing a $2500 rebate promotion for this month, and I'm hearing also that GM is doing 0 financing too.

    So, if I was to trade in my Pathfinder for an Avalanche, would my payments be a lot more since I still have that car loan? Would they come out mostly the same beacuse the value of the car is what's left on the loan? Or would it be best to give the pathfinder back or something, and just get the avalanche straight-up? Is there any way possible to trade in and come away with a smaller payment than what I'm doing now?

    Anyone with experience in this stuff have any answers and/or adivce? [​IMG]
     
  2. Tim Morton

    Tim Morton Stunt Coordinator

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    I think you will not get a dealer to give you a wash on the Pathfinder AND give you the 2500 rebate. You will need to seel the truck yourself to get the 14000 paid off. Then you will go into the avalance with no trade and no down, again the 2500 will be the down, but with that you will not get the 0% financing, or if you get the 0% they will do it for 3 years and your payment will be around $1000 or so. Your only way to get the payment under 6 will be to finance over 5 years and roll the 2500 into the down at a very low interest rate. Plus where are you finding a new avalanche for 35...around here they are 38plus.
     
  3. MarcVH

    MarcVH Second Unit

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    In general, trading in a three-year-old car at the dealer means you are wrapping your head in cellophane, shoving a big white stick up your butt, and saying "I am a huge sucker." [​IMG]

    OK, maybe that's overstating the case a bit, but trading in is something you do for the sake of convenience, and you shouldn't expect to get KBB value for it unless the dealer is really hard up to close the deal. If you want a fair price, you'll have to sell it on your own, which is a hassle (and the dealer knows this and will use it to his advantage.)

    What you want to watch out for, if you decide to do this, is the dealer either saying you break even on the trade-in but having the $2500 rebate really going to make that happen, or graciously offering to roll the unpaid balance over onto your new car loan. Then you'll be even more seriously upside-down on the new loan, which is a bad way to be.

    Personally, unless the Pathfinder has some serious problem for your intended use, I'd keep it and forget about getting new car #2 until you've finished paying for new car #1. Then use the money you're saving on payments to build up some savings so that you don't have to go upside-down on your next loan. There are regular posts from people who are badly upside down, have their car totaled somehow, and find that the insurance settlement won't cover what they owe.

    However, if you're determined to do this, you may want to consider leasing the Avalanche rather than buying it. Leasing is usually a lousy deal, but it's not as lousy as buying and then trading in after 3 years.
     
  4. Tim Kline

    Tim Kline Stunt Coordinator

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    Hmm.. ok this is pretty much what I feared. Thanks for the info [​IMG] I guess it would generally just be a bad idea now. I've wanted an Avalanche since I first saw them, before I even had my Pathfinder. I still really like my Pathfinder a lot, and with things looking up for me financially now, I thought maybe I could move up to what I've always wanted. But I'll stick with what I have, which I'm still more than happy with, and then when it's finally paid off I'll take another look around [​IMG]
     

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