Thinking about a Trade....

DS Detailer

DS Detailer

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Currently I have a 2006 Dodge Charger R/T. I love it, and it's the best car I've owned. But, i pay 580 a month with my payment and insurance. At work they've decreaced our bonuses and made it extremely difficult to bonus. Needless to say, in the $$$ aspect I'm really struggling. I'm considering Trading in the Charger for something that's a little more do-able each month. A 2007 Sonata, A Tacoma, or Frontier... Something similar to that. Keep in mind, I've had to move back in with my parents because i could no longer afford rent.

I guess I'm just looking for a little friendly advice.
 
Just curious but what do you do for work, if anything I'd start there as it seems the issue is their not paying enough. I'd look elsewhere for work if you can't afford rent, the car etc.

As for the vehicle kinda depend on what you want, gas mileage, space, car/truck etc? I had an ex-gf with a manual trans Civic, and we both did a lot of driving, yet her car only saved about $1500 or so over the year in gas compared to my V8 suv. Not a big difference at all IME considering the difference between the two vehicles. If anything I'm guessing you want something comfy with good gas and cheap payments, I would say look at a used 4 cylinder Accord.
 
$1500 dollars difference a year is a big difference I think. I agree, the accord is a nice car and I also like the new camry a lot. There is definitely nothing wrong with driving one of those until you can afford a better car. Also, see if you can find something used so someone else takes the hit on depreciation.
moving out > car
 
This is just my opinion but the way I see things is the following way, what is important to you being in debt and having good things or not being in debt and having mediocre things? I mean do you like to have the freedom of just going out to eat at a nice restaurant, nice not expensive, and not worried about weather your going to have enough to pay all the bills. Or do you want to be in debt and not go out at all because all your money is going to payments?

I personally, don't like being in debt and pay everything off right away. Credit cars are a blessing, in my opinion. But at the same time if you don't know how to manage your money they can be hell. It all depends on how you want to live, that's all.

As far as a car goes, it's up to you but if your tight on money stick to what you can afford. If it's a used car so be it, there is nothing wrong with driving a used vehicle. I agree with abrcrombe, let someone else take the hit for the depreciation and you still get a fairly new vehicle. But really it all comes down to how you like to live, with debt or with out debt.

If what I'm saying offends, please don't take it that way...just sharing my philosophy in life and how I was taught to manage debt..that's all no harm intended.
 
abrcrombe said:
$1500 dollars difference a year is a big difference I think. I agree, the accord is a nice car and I also like the new camry a lot. There is definitely nothing wrong with driving one of those until you can afford a better car. Also, see if you can find something used so someone else takes the hit on depreciation.
moving out > car
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Well kinda depends on where your comming from, with my business and other stuff etc 1500 doesn't help for anything, two of my rental properties are twice that in payments. Now if your struggling, barely making payments then yes it's a difference.

I've talked some friend out of getting rid of their trucks b/c they were worried about gas mileage prices, when I ran the numbers for them and showed them, usually it made no sense as they would now have a higher new car payment, usually insurance depending on what they got etc. They were actually saving money not getting a new car (that's also not taking into account the depreciation they would have lost on trade in).

In DS's case if he can get all them down, and buy a barely used car or left over model (big mark downs) he can make out better.

What I meant was say he's at 580 now, disregarding the loss he'll take on trade-in, gets a new car etc, and overall payments end up being only 100-150 less a month (just using a general number), that's not going to do much for his situation if he's already having trouble trying to pay rent and other things etc. That's why I also suggested to maybe look at a new line of work, you have to evaluate your whole financial position.
 
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my question is , have you researched what your car is now worth ?? The used market has been destroyed by incentives, rebates, and low financing rates. As such, and considering locally they are giving SRT's away at cost, you might be upside down. That means you might move to a lower quality car and still the same payment. Just check on all aspects !!
 
killrwheels@autogeek said:
my question is , have you researched what your car is now worth ?? The used market has been destroyed by incentives, rebates, and low financing rates. As such, and considering locally they are giving SRT's away at cost, you might be upside down. That means you might move to a lower quality car and still the same payment. Just check on all aspects !!
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Bingo, especially American vehicles, horrible resale in general save for a few cars.
 
Go to your local Enterprise rental agency and ask them for a list of cars and trucks for sale. This is THE best place to get a used vehicle. You can even get an extended warranty for them.

I got our 05 Freestar there. New.....27500.......used with 25k miles.......12300!

Just try for shucks and giggles.
 
killrwheels@autogeek said:
my question is , have you researched what your car is now worth ?? The used market has been destroyed by incentives, rebates, and low financing rates. As such, and considering locally they are giving SRT's away at cost, you might be upside down. That means you might move to a lower quality car and still the same payment. Just check on all aspects !!
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:iagree: you will take a hit when you trade it in and you may have to purchase something you dont want.
 
I'm with Nica on this. Considering you had to move in with your parents because you can't pay rent is the nail in the coffin for me. For me it's a no brainer, sell the car yourself, taking a hit if you have to. And then buy a nice $5K used car. You'll have to settle for something you don't like, but if you look hard enough you'll find a good deal. And it will last you 3-5 years. Even if you have to take out a loan, if you are just barely affording the Charger that means you can pay off the used car in less than a year. Then you can start bankrolling that loan payment to the tune of $7K a year if you are still living with your parents. So by the time you need to replace that cheap car you bought, you should have enough saved to buy a nice used car and be able to afford living on your own again.
 
Depending on the miles you drive, you roll the negative equity into a two year lease. Then you would be out. You need to look at a company that has a high residual value like Honda.

I did this for a lot of customers when I was a finance manager.
 
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