Quote:
Originally Posted by Dake
REALITY CHECK - Need more info (how many months is the loan, 60 or 72 - or longer?)
When the dealer says they'll, "Pay off the car" that seldom means they are giving you $16k in trade. It means they are giving you the 13 (or whatever) and rolling the remaining difference (so up to 3 grand) into your new loan. This means you are handing them money on the front end AND on the back end. What you're probably really paying is the $26k for the new car, plus the $3k you still owe on your old car for a loan total of $29k (plus TTL).
Unless you have it IN WRITING that they have valued your trade for sixteen grand and would write you a check for that amount.
Look at your paperwork VERY closely. If they aren't doing that they've messed with the interest rate or the loan period to get you the "payments you want", but are still getting their money out of it.
We can't really make an informed decision without all the particulars of the proposed loan agreement, but if it seems to be working out in your favor it rarely actually is.
-Also, rereading your initial post I get the impression the dealer has not physically inspected your car yet (you stated you "told" them the facts on your car)? That would mean their appraisal is conditional and I'd be curious if they don't try and knock it down a bit once they actually put their eyes on it.
In case it's not obvious - I don't trust car dealers.  
That being said, according to my trusty financial calculator, 427/mo for 72 months @4.5% does work out to the final price you've stated for the new car, so maybe it's legit and they really are giving you the payoff amount in trade on your old one. In which case, that seems like a pretty good deal. |
Thank you for the advise, I learned a lot of the same when I bought the car originally. You are correct, they are out of town and I have not physically brought my car to them, I did honestly tell them every single issue with the car in grave detail over the phone and the salesman told me his general manager said he'd take the risk giving me $16,000 for the trade in value. I've already told them not to waste my time, so long as I wasn't hiding anything (I wasn't) then they shouldn't have an issue with the car when I bring it there, if they do, and try to reduce trade in offer, I'll walk away, simple as that. I'm not giddy about the trade and I certainly won't talk myself into taking a lesser deal, I'll probably visibly get pissed and walk away, its all business really.
Aside from that, I understand where people are coming from with trading for used manuals etc. That's probably a better way to go, but I'd have to find one first, and one that isn't 2k miles away. I understand a lot of people would prefer to spend more money on more power than to spend it on buying the car newer, but I actually hate every other sports car I've driven in that range. I hate mustangs, I hate Cameros, but I love this car, and I'll eventually add more power, but for now its a driver's car and it's top notch in my opinion. I do plan to drive it until its eventual death after this transaction and I don't have the upfront cash to buy all the upgrades I want to put into it anyways, I'd wait out the warranty and save my pennies while I do. As of now, I think I've mostly made up my mind and I'm going to the bank with financial docs tomorrow to see what I can get for financing + GAP insurance on the new ride before I even go to the dealership. I'll update when I get back Sunday evening and let everyone know what transpired. Thanks everyone.