How does trading a car you are currently financing work?

[amdhunter]

Originally posted by: j00fek
your a moron for trading a honda for a mitsu

I've owned both brands. Never really had a problem with either. I am more worried about buying a manual car than anything else, since I can't drive manual cars for the life of me.

I don't think of it as trading a honda for a mitsubishi, I think of it as trading a Civic for an Evolution X.

 

[Whisper]

Originally posted by: amdhunter

Originally posted by: dullard
Suppose you owe $3,000 more than the car is traded in for. And suppose you are buying a $50,000 car. Then, you will get a loan for $53,000. You again will owe more money than the car is worth. Rinse and repeat.

Then you see why you are financially restrained now. (1) Buying a car when you really can't afford it - at least twice. (2) The attitude of "I don't care about a few thousand dollars lost". (3) Using CCs as a loan. Combined, that isn't a good path to go down.

I am not financially restrained now. I have finally rid myself of credit card debt. I have some money in the bank for a rainy day, and I really want that car. The few thousand dollars lost will be money I have in the bank. I haven't used my CC's probably for 2 years now. I will make small $10 purchases here and there to keep them active, but thats it, and that's because I don't want them automatically closed for carrying $0 balances.

Seriously, I have seen much of my family (like my parents) save up all their lives and get nothing out of it. For example, they just went to Disneyland a few months ago, and right now they are vacationing in Trinidad. Every time they come back from wherever they went, they say how they should have done it sooner, rather than waste their whole life saving here and there. It's pretty sad, and I feel sorry for them.

I am already 32. I don't want to be 65 and then purchasing a car that I wanted all my life, and I don't care what it costs. Purchasing this car will definitely be in my means, and I will still have money left to save every month.

It's not like I have a family or anyone close to me to take care of anyway, and I've accepted the fact that I will never have one. So I want to get whatever makes me happy now, regardless of cost.

I can see why some of the people in this thread initially posted with concern regarding your financial habits, but in all honesty, I tend to see things the same way you do. Saving is of course a necessity, but that shouldn't prohibit you from splurging every now and again. If this truly is your dream car (and with me being a "car person," I can definitely understand how that goes), and you can afford it as you claim, then I say scr3w the negativity and buy it. We only live once, and if this thing is going to bring you some serious enjoyment, then it's a worthwhile investment in my book.

Edit: might want to see if you can learn stick on a less-expensive car first, though, even if it means having to offer to replace the clutch for a friend or family member. I'd imagine an Evo isn't going to be very forgiving to begin with, and the replacement parts probably aren't very cost-friendly.

 

[amdhunter]

Originally posted by: Whisper

Originally posted by: amdhunter

Originally posted by: dullard
Suppose you owe $3,000 more than the car is traded in for. And suppose you are buying a $50,000 car. Then, you will get a loan for $53,000. You again will owe more money than the car is worth. Rinse and repeat.

Then you see why you are financially restrained now. (1) Buying a car when you really can't afford it - at least twice. (2) The attitude of "I don't care about a few thousand dollars lost". (3) Using CCs as a loan. Combined, that isn't a good path to go down.

I am not financially restrained now. I have finally rid myself of credit card debt. I have some money in the bank for a rainy day, and I really want that car. The few thousand dollars lost will be money I have in the bank. I haven't used my CC's probably for 2 years now. I will make small $10 purchases here and there to keep them active, but thats it, and that's because I don't want them automatically closed for carrying $0 balances.

Seriously, I have seen much of my family (like my parents) save up all their lives and get nothing out of it. For example, they just went to Disneyland a few months ago, and right now they are vacationing in Trinidad. Every time they come back from wherever they went, they say how they should have done it sooner, rather than waste their whole life saving here and there. It's pretty sad, and I feel sorry for them.

I am already 32. I don't want to be 65 and then purchasing a car that I wanted all my life, and I don't care what it costs. Purchasing this car will definitely be in my means, and I will still have money left to save every month.

It's not like I have a family or anyone close to me to take care of anyway, and I've accepted the fact that I will never have one. So I want to get whatever makes me happy now, regardless of cost.

I can see why some of the people in this thread initially posted with concern regarding your financial habits, but in all honesty, I tend to see things the same way you do. Saving is of course a necessity, but that shouldn't prohibit you from splurging every now and again. If this truly is your dream car (and with me being a "car person," I can definitely understand how that goes), and you can afford it as you claim, then I say scr3w the negativity and buy it. We only live once, and if this thing is going to bring you some serious enjoyment, then it's a worthwhile investment in my book.

Edit: might want to see if you can learn stick on a less-expensive car first, though, even if it means having to offer to replace the clutch for a friend or family member. I'd imagine an Evo isn't going to be very forgiving to begin with, and the replacement parts probably aren't very cost-friendly.

I am very concerned with this. My nephew is purchasing a [less than $1000] car soon, and wants to be put on my policy. I told him that I will put him on it IF he buys a manual transmission. This way I can beat on his car a bit.

 

[jandrews]

I am very confused, how did you not work for two years without unemployment or government assistance and still afford those thing?

 

[Old Hippie]

I say go for it.

Yep! :thumbsup:

 

[jiggahertz]

Originally posted by: amdhunter

Originally posted by: jandrews

Originally posted by: lupi
One thing to add, you won't be able to get a loan for more than the MSRP of the vehicle you are getting so if the amount of additional financing caused by the debt of your old car + bargained price for the new car exceeds the MSRP of the new car you will have to pay enough of a down payment to make the total financed amount no more than the MSRP value.

this is very true, the bank will look at the value of the car and they refuse to finance something that is not up to their calculations.

Yep, I am prepared to pay the difference in cash.

Sounds like you're financing through the dealership? They will usually have more flexibility than dealing with a bank.

 

[Adul]

asuiondlike you will be ok. See if you can play two dealers against eachother and try to get the ebst deal. Also try to take home the loan paperwork to review it

 

[mitaiwan82]

Originally posted by: amdhunter
I am more worried about buying a manual car than anything else, since I can't drive manual cars for the life of me.

oh you aren't even proficient with a manual transmission? I would suggest that you get something smaller to chew on then. Do you have any track or autocross experience? It would be a shame not to take the Evo to a closed course to wring out it's full potential. I think the Evo is one of those cars you graduate up to, once your driving level is more in line with its performance. For example, I bought my Miata from a guy who bought went on to buy a S2000, because he wanted to get used to a RWD car before making the plunge.

I'm not saying you're a punk kid (maybe you feel that way at age 32?), because you would've worked hard for this car. As a car snob/enthusiast, I just would have more respect for someone whose driving skill matches closely to the car they drive. I cringe at automatic transmission and women in sports cars (sorry for the small population of female car enthusiasts).

 

[homercles337]

The Garage is ...

<------- that way...

 

[amdhunter]

Originally posted by: jandrews
I am very confused, how did you not work for two years without unemployment or government assistance and still afford those thing?

I nearly wiped out my bank account. I had 5 digits when I started then got a job after it went down to low 4 digits.

 

[RU482]

Originally posted by: amdhunter

Originally posted by: jandrews
I am very confused, how did you not work for two years without unemployment or government assistance and still afford those thing?

I nearly wiped out my bank account. I had 5 digits when I started then got a job after it went down to low 4 digits.

I could do that in a good weekend

 

[railer]

You guys sound like a bunch of Aunt Ethel's in here.

Who wouldn't trade a civic for any Evo? My 95 year old grandmother, that's who.

Sounds like a great choice to me dude. Get what you want while you can.

You'll either have a 5/60k or 10/100k warranty on that clutch (depending on whether it's covered under powertrain or bumper to bumper), so I wouldn't worry about it too much. Just learn to drive on the evo. Ignore the PBS watching haters.

 

[rh71]

carbuyingtips.com will teach you a lot (sorry I don't have time to read all the responses)