Sep
I'm financing a 2007 Ford Focus Hatchback since January 2008 and I want to trade-in this vehicle to Honda or Mazda. Is it possible to trade-in it even if its not fully paid? I'm paying my ford focus for 60 months and with a high APR (8.3% because i dont have credit history), I want to trade it for a good Sedan like Mazda3 or Honda Civic.
Answer:
Any automobile that you purchase, not lease, can be traded in at any time. The big question is how far upside down are you? You've only been paying for 7 months. I'd say you're far too upside down. No loan company will approve the deal. Here's why …
Say you're $8000 in negative equity right now. (a strong possibility) You want a Civic that stickers at $18000. The dealer will sell it to you at $16500 plus fees. On average, that will come out to about $18300 out the door. All lenders will approve a loan no more than 10% over sticker price of any new vehicle. Or $19800 in this situation.
You’re $8000 in the red. The dealer can take $1500 of that and bury into the new contract on the Civic since he can get as much as $19800 from the lender. That means you need to come up with the rest of the negative equity, or $6500. If you don't have that to put down, you don't have a deal.
Beware of any old style, blue suede shoes dealer that claims you can get into the automobile of your choice. No matter how much you owe on your present one. This type of dealer uses predatory lenders who make personal loans, not auto loans. You'll be paying for the new automobile, as well as the balance of the trade-in with an APR of 19.9% to 29.9%.
What that means is that if the total selling price of the Civic is $26,300, with your negative equity included, you'll end up paying a total of $50,000 to $65,000 for the $16500 car at the end of 60 months!
Forget trading it in. You're at least another 2 years away from reaching equity in your current car. And you don't have enough credit established yet to get 0.0% from a new automobile manufacturer.
And for someone without any credit history, getting approved at 8.3% is incredibly low!
Answer:
yes you can but it's not going to be pretty. the day you drove the vehicle off the lot it lost at least 2k in value since its an 07 figure about an extra 2-3k in value loss. So if you paid 15k for the vehicle with financing subtract financing taxes .etc fees and lets state that comes to 10,500 now it's depreciated value is at about 6k. being realistic you probably have barely paid for the taxes and financing. Leaving you with 10,500 -the 6,000 . So if you buy a mazda3 for 21,500 add that 4,500 left over from the ford. That's 26k plus a new financing contract. basically your paying the dealer to take the car off your hands and begin over. I wouldn't do this a friend of mine did this and his payments for an 07 focus are 2 dollars less than my crew cab truck note. How much are your vehicle notes out of curiosity and to help you figure out what your looking at.
Answer:
You’re probably way upside down on your loan. You didn't state what you put down on the loan. If it was zero or tiny down, you'll never get your balance out. You superior stick with it until you've paid more of it off.
Answer:
you can try…in this economy you might have trouble. If you didn't want the Ford, why did you buy it in the first place ???
Answer:
You can trade but there's no telling what the dealership will give you and more than likely they won't give you a lot. So whatever's left will be added into your new car's price.
Answer:
I'm sure you’ll take a big hit on the Ford. I would try and sell it private sale and re coupe as much as you can before you trade it. Book Mark it-> del.icio.us | Reddit | Slashdot | Digg | Facebook | Technorati | Google | StumbleUpon | Window Live | Tailrank | Furl | Netscape | Yahoo | BlinkList