Ok, I've about had it with this car. Let me put it into perspective, the 4 almost 5 months I've owned it I've almost poured a grand into it. Currently I owe $12k on it. I was looking at a v6 Mustang 5-spd. It's listing for $10k. If I were to trade in my car, get what KBB is saying it's worth, which happens to be $8k.

My understanding is, if I get the $8k for the car, that means I still have $4k of debt? If I get this car, out the door would be $11k. That means I would owe $15k right?

Help me out folks. Oh, please, no "I told you so"

Thanks guys, discouraged in Tville, yours truely,

Lifeguardjoe

 

Yes Joe if that is the deal then you would owe 15K. What ytou have to do if there is 4K difference between pay off and trade in and you want ot trade it in. Then you will have to find a car/truck that is selling for 4K less than suggested price. So the bank will loan enough on it to pay off the remainder of your car and put it on your new loan!

 

Say what?

Wouldn't they just transfer the $4k to the new loan? Help me out here, baby talk please.

 

Doesn't 15,000 paper seem like a lot for a v6 mustang? Whats the KBB on it?

 

What you want joe is what we call a cheater car. Something that the dealer can sell you at some type of profit for them yet they own it for well below book so that there is enough room to add your negative equity on and still not be too far over the book value of the new car. If you're too far over that the bank will want cash down.

 

Actually, I found a little better deal:

1999 Ford Mustang GT 2D Coupe
Stock Number: 3010389
Exterior Color: Black
Interior Color: Black Leather
Mileage: 54K
Current Store: Tampa
Florida Final No-Haggle Price: $13,147




Ok, now I need some help guys. I don't know how to approach my father on this. His mind set is "It can be fixed", but I'm wondering at what cost?

There's something wrong with my front drivers side tire, my toe is -5.35* (it should be -0.10* to 0.10*) if that means anything to you.

 

The other possibility is find something you like thats new with a good rebate or on the family plan deal and that will help absorb most if not all of your negative equity.

 

you owe $12K
if trade in value is $8K
you are negative $4K in equity

So you will add $4K to what ever the price is on the car you are going to trade it in for. This will finish paying off your loan and finanace the new ride.
If the value of the new car you want ot trade for is 13K but priced at 12K then you will have to finance $16K. You will have a hard time getting the finance company to finance the $16K on a car worth 13K.

 

Remember insurance for someone our age for a GT Mustang is a lot more than a Foci...

 

Yeah, I'm talking with a guy from Carmax and he said most banks will only do 20% of what the car is worth. That's only $2.4k, half of what I would owe on it.

 

I know, I'm in no rush.

 

You cannot buy your way out of debt. Your entire premise is screwed up. You're in debt over your head and you're looking to buy your way out of it??? Instead of trying to figure out how to come up with funds to cover your $4K negative equity, why don't you try to figure out how to come up with $120 for an alignment? Nobody can afford to swap cars every 6 months, it's too expensive.

Like my father told me for 30 years- "Get to work, pay off your debts and pay as you go."

 

You need to fix the Focus. Let's say you pull off this deal and transfer the $4K over to the new loan. Now you're deeper in debt with another used car. The thing about used cars, you don't know who owned 'em before ya. So what's to say that you don't end up with some problems with the mustang? Are you gonna want to trade again and pull the same kind of deal? It's a vicious cycle.

 

'Nuts right... I coulda had that Mustang before...

 

But Joe, if you get rid of the Focus.......