Question about car trade in?

[Cam2Benji]

So I am looking to get a cheaper car payment so i'm thinking about trading my car in, even though I know I will lose a lot of money.

 

I owe about $18,000 on my 2014 Dodge Avenger (I bought it brand new) and it has 14,000 miles on it.

 

I'm looking at a "used" 2012 Dodge Charger it has 7,000 miles on it and the car price is $18,575.

 

Anybody familiar with car trade in-s and how the process works?

 

 

Will I have to pay money down?

 

 

[Kevin Greene]

Stay away from Mopar, win.

[KSpan]

What are the original terms of the loan on the Avenger? Need to know that before offering an opinion, but in general trading a car gets you the least value but is the greatest convenience.

[Arroz con Panther]

I imagine that your down payment will be the money they give you for the trade.

[MadHatter]

So I am looking to get a cheaper car payment so i'm thinking about trading my car in, even though I know I will lose a lot of money.

 

I owe about $18,000 on my 2014 Dodge Avenger (I bought it brand new) and it has 14,000 miles on it.

 

I'm looking at a "used" 2012 Dodge Charger it has 7,000 miles on it and the car price is $18,575.

 

Anybody familiar with car trade in-s and how the process works?

 

 

Will I have to pay money down?

 

Not sure how the above numbers are going to give you a lower car payment.

 

I doubt they are going to give you much more than you owe on your car for a trade-in....and the car you are looking at costs more than your current loan value.

 

Also...you are likely to get a higher interest rate on the used car than you did on the new car (usually works that way).

[Panthro]

So basically you owe 18k on a car that might be worth what...14k

 

So you still have to finance that 4k in any other car. That is called being upside down. They only finance a certain amount above the sticker. Putting money down in your case is basically throwing money away. 

 

New cars generally have a lower APR than a used car. If you have a credit union you can get 60-72 months at 2-3% that also means you better sure as hell love that car. Or take you car and get it refinanced through a credit union. That way you can get a lower payment.

 

My advice...stop buying dodges their resale value is poo. 

 

The other option is to drive a poo lease for 24 months. I mean lease a POS and roll your car into it. At the end of 24 months you walk away from both the lease and the original dodge and go make a smarter car buying decision.

 

 

[Kevin Greene]

 

 

My advice...stop buying dodges their resale value is poo. 

 

 

 

This is the bottom line with Chrysler. This is a company that at one point would not lease their own vehicles to people as the resale is such shyte they didn't want the cars back in 2 or 3 years.

[Cam2Benji]

Not sure how the above numbers are going to give you a lower car payment.

 

I doubt they are going to give you much more than you owe on your car for a trade-in....and the car you are looking at costs more than your current loan value.

 

Also...you are likely to get a higher interest rate on the used car than you did on the new car (usually works that way).

Really?

 

I thought if I trade my car in for a used car it would lower my payment, but you saying my interest rate will only get higher if I trade it on a used car.

 

So is it best I trade it on another new car?

[Cam2Benji]

So basically you owe 18k on a car that might be worth what...14k

 

So you still have to finance that 4k in any other car. That is called being upside down. They only finance a certain amount above the sticker. Putting money down in your case is basically throwing money away. 

 

New cars generally have a lower APR than a used car. If you have a credit union you can get 60-72 months at 2-3% that also means you better sure as hell love that car. Or take you car and get it refinanced through a credit union. That way you can get a lower payment.

 

My advice...stop buying dodges their resale value is poo. 

 

The other option is to drive a poo lease for 24 months. I mean lease a POS and roll your car into it. At the end of 24 months you walk away from both the lease and the original dodge and go make a smarter car buying decision.

I really want a sports car that is why I want the Charger.

 

What about the Chevy Camaro? Are those a good option?

[Panthro]

Sports car and a lower monthly payment don't usually coexist.

 

You may have some negative equity in your vehicle...unless you can sell it for more than you owe. First step would be to take you car into carmax and get a price on how much they would buy it for. Use that as a baseline.

 

If they offer you more than you owe perhaps you sell it. If they tell you it is worth 13k and you own 18k then that  5k will add roughly $85 per month to a 60 month purchase....and you haven't even bought your sports car yet.

 

If you do a trade in at a dealer ship they might show you getting 16/17k for it but you will pay for that negative equity...they are just playing numbers with you.

 

Figure out how much the car is worth and how much you owe then you can start trying to figure out a plan to buy new.

 

[frash.exe]

As a general rule, new cars lose the biggest chunk of their value in the first year, and you're putting serious mileage on that thing seeing as how it's a current model year and you're already up to 14k miles.

My advice even though it's not really flexible since you bought it recently is maybe see if you can refinance?

[Davidson Deac II]

Only way you are getting a lower payment is if you either make a big down payment along with your trade in or you string it out so that you make smaller payments for a greater amount of time.  If you do the first option, if you have that much cash, then I would ask why you need smaller payments?  With the second option, you will end up paying a lot more for the car over the long run, assuming the bank is willing to approve. 

[MadHatter]

So basically you owe 18k on a car that might be worth what...14k

 

So you still have to finance that 4k in any other car. That is called being upside down. They only finance a certain amount above the sticker. Putting money down in your case is basically throwing money away. 

 

New cars generally have a lower APR than a used car. If you have a credit union you can get 60-72 months at 2-3% that also means you better sure as hell love that car. Or take you car and get it refinanced through a credit union. That way you can get a lower payment.

 

My advice...stop buying dodges their resale value is poo. 

 

The other option is to drive a poo lease for 24 months. I mean lease a POS and roll your car into it. At the end of 24 months you walk away from both the lease and the original dodge and go make a smarter car buying decision.

 

I am not even sure a credit union will give you 60-72 months on a USED car.

[MadHatter]

As a general rule, new cars lose the biggest chunk of their value in the first year, and you're putting serious mileage on that thing seeing as how it's a current model year and you're already up to 14k miles.

My advice even though it's not really flexible since you bought it recently is maybe see if you can refinance?

 

Bank is not going to touch a refinancing on a one year old car.

 

Not to mention a used car interest rate is higher than a new car....and the length of a used car loan is usually lower than a new car.