Trading in a 1.5 year old Malibu

[Fraggable]

I really aprecciate the responses and I am listening, trying to be neutral and take good advice when I see it. I know I made a mistake, at the time I thought I'd keep it for 6+ years and maybe I will. I also knew that the 08's were coming out in about 8 months when I got it and that value would be affected by that, but if I'm keeping it throughout the loan what difference does it make. I needed a car then, not 6 months after the snow was gone, so I did it. My year model's value sucks harder than almost any other for several reasons - one being the flood of off-lease models and old rentals, the other being the '08 redesign. On the positive side insurance is pretty cheap.

If you'll notice, my main goal here is to lose the negative equity. Getting more features would be awesome but it's not more important than making a good financial decision now. With people getting a lot for trade-ins, I thought there was a chance I'd get some if not all of this $6K difference paid for and buy into a used... something at near-real value. I take it most people here don't think that would happen, in which case I would NOT roll $4-6K of that loss into another car loan, I'd just keep what I've got now till it's paid off, or close to it.

The loan I have is 72 months @ 7%. I'm 1 year, 5 months into it I think. Been paying a hair more than the payment amount, not enough to matter.

 

[BUTCH1]

Even if you waited for the newer model, they are selling well and you would not have gotten as good a deal. As you mentioned, insurance for these cars is super cheap, I'm paying
$60/month for full coverage including bodily inj. liability. The newer 3.6 OHC that replaces the 3.5 pushrod makes 255 HP but also gets about 4-5 mpg less. More HP= more fuel, there is no free lunch. IMHO 200-217 HP is plenty for this car and the 3.5 makes it's max torque around 3K RPM so it's still fun to drive, ( just don't expect it to handle like a Mazda 3). 🙂

 

[Bignate603]

Originally posted by: Fraggable
I really aprecciate the responses and I am listening, trying to be neutral and take good advice when I see it. I know I made a mistake, at the time I thought I'd keep it for 6+ years and maybe I will. I also knew that the 08's were coming out in about 8 months when I got it and that value would be affected by that, but if I'm keeping it throughout the loan what difference does it make. I needed a car then, not 6 months after the snow was gone, so I did it. My year model's value sucks harder than almost any other for several reasons - one being the flood of off-lease models and old rentals, the other being the '08 redesign. On the positive side insurance is pretty cheap.

If you'll notice, my main goal here is to lose the negative equity. Getting more features would be awesome but it's not more important than making a good financial decision now. With people getting a lot for trade-ins, I thought there was a chance I'd get some if not all of this $6K difference paid for and buy into a used... something at near-real value. I take it most people here don't think that would happen, in which case I would NOT roll $4-6K of that loss into another car loan, I'd just keep what I've got now till it's paid off, or close to it.

The loan I have is 72 months @ 7%. I'm 1 year, 5 months into it I think. Been paying a hair more than the payment amount, not enough to matter.

My bet is your coworker trading in the kia could have negotiated most of that trade in value in discounts if he wasn't trading in the kia. They're desperate to move cars so they'll work their prices down one way or another, whether they say your trade is worth more than it really is or just by cutting it off the cost of the new car. They won't make the same sort of deals on used cars (The factory rebates and things don't apply so they have much less room to chop down the prices).

Your best bet is to just start paying your current one off as fast as possible. An extra $100 a month will really speed things up. If you've been good on making payments and things you could look at a refinance or something similar at your bank.

 

[halik]

Originally posted by: everydae
Financial-wise, you already made a huge mistake when you bought brand-new American brand car (which you already know). You will never break-even until you pay-off because of that one mistake you made.

But OP, I know you will never listen to us as our advice is totally opposite to what you want to hear. So, why don't you bring your car to dealer and see what they offer you? Who knows if some dealer offer you something like your co-worker's Kia?

Ding ding ding, rolling in an old loan into a new one and then buying a car with a HUGE rate of depreciation. Just eat it and drive the car till the wheels fall off.

 

[halik]

Originally posted by: Fraggable
I really aprecciate the responses and I am listening, trying to be neutral and take good advice when I see it. I know I made a mistake, at the time I thought I'd keep it for 6+ years and maybe I will. I also knew that the 08's were coming out in about 8 months when I got it and that value would be affected by that, but if I'm keeping it throughout the loan what difference does it make. I needed a car then, not 6 months after the snow was gone, so I did it. My year model's value sucks harder than almost any other for several reasons - one being the flood of off-lease models and old rentals, the other being the '08 redesign. On the positive side insurance is pretty cheap.

If you'll notice, my main goal here is to lose the negative equity. Getting more features would be awesome but it's not more important than making a good financial decision now. With people getting a lot for trade-ins, I thought there was a chance I'd get some if not all of this $6K difference paid for and buy into a used... something at near-real value. I take it most people here don't think that would happen, in which case I would NOT roll $4-6K of that loss into another car loan, I'd just keep what I've got now till it's paid off, or close to it.

The loan I have is 72 months @ 7%. I'm 1 year, 5 months into it I think. Been paying a hair more than the payment amount, not enough to matter.

Jesus h chris, how did you not see that coming? Also 7% is anal rape for a new car... ANAL RAPE. I financed my audi thru a CU earlier this year at 4.99% USED

 

[LTC8K6]

yes, the V6 Malibu gets way better mileage even with a larger engine

The 3.8L in the mustang should have done as good and likely better than the 3.9L in the Malibu on fuel.

It's EPA rating is actually 2-3 mpg higher.

 

[Fraggable]

Originally posted by: LTC8K6

yes, the V6 Malibu gets way better mileage even with a larger engine

The 3.8L in the mustang should have done as good and likely better than the 3.9L in the Malibu on fuel.

It's EPA rating is actually 2-3 mpg higher.

My malibu has a 3.5, the LTZ is the only one that has the 3.9. Other things like VVT I think help with it too. My Mustang got about 21 average, my Malibu gets about 26.5.

 

[alpineranger]

Wow I didn't realize you got hosed so badly on your loan. It sounds like they got you by focusing on monthly payments. Really, the longer you can stay away from any car loans the better off you'll be, except if your car gets totaled and the insurance payment isn't enough even to cover your loan.

 

[OnePingOnly]

For ~$25K I would've purchased a pristine second-hand early 2000s 740iL, late 90s Mercedes S Class, or used Lexus LS430/GS430. I didn't think the Chevy Malibu was on any car enthusiast's radar. You could've probably purchased any of these and spent the savings on car maintenance for the next few years.

 

[OnePingOnly]

Originally posted by: JRussellDMD
For ~$25K I would've purchased a pristine second-hand early 2000s 740iL, late 90s Mercedes S Class, or used Lexus LS430/GS430. I didn't think the Chevy Malibu was on any car enthusiast's radar. You could've probably purchased any of these and spent the savings on car maintenance for the next few years.

Here are some examples on eBay:
2002 BMW 745i
~ $21K + TTL

2005 Lexus LS430
~ $26K + TTL

2006 Mercedes-Benz E350
~ $22K + TTL

With these in mind I see no reason to purchase a BRAND NEW car. These have already depreciated more than 50% and they're way better cars than any Chevrolet sedan could be.

 

[Fraggable]

Ok ok, I realize now the new car was a mistake... This thread is about possibly doing something to get out from under that mistake. I made a mistake, I'll own up to it. If I must I'll live out the loan and drive the car for another 4 years or so, I have no problem paying for my own mistakes.

If the market was/is such that I could drop all or most of this $6k generated by this mistake, I want to do it. I understand if you don't think it is, but... just say so.

 

[OnePingOnly]

Fraggable,

You know what you must do. I wouldn't recommend trying getting into any car from a dealership, new or used, when you're $6K upside down on the current loan. They'll lowball you on trade-in of the Malibu and/or won't budge on the MSRP of the new/certified used car. Also, I wouldn't sell it until it bottoms out around $5-6k in KBB/NADA private party value, probably around 2011-2012.

 

[OnePingOnly]

Fraggable,

I also must let you know that you're not in too bad of shape, financially. For example, there's thousands of people who've had their homes foreclosed upon in the last year; financial mistakes which potentially could've cost them six figures in losses. Take this as a lesson for the future. I've lost way more than $6K on bad decisions.

 

[iversonyin]

Trade in for BMW 3 or a G35.....f--k the Malibu! You are moving up in this world. Car payment is car payment, you have to pay either way!

 

[Fraggable]

Originally posted by: iversonyin
Trade in for BMW 3 or a G35.....f--k the Malibu! You are moving up in this world. Car payment is car payment, you have to pay either way!

That's funny, I've been looking at 325's rather than Nissans. I went looking for one after work today but couldn't fine one, they dont seem to hang around any lots other than BMW stores, and the closest one is on the wrong side of town. I'd like to just see what they're like, if they're really much different than what I've got.

Never considered Infiniti's, have to look into that.

 

[Bignate603]

Originally posted by: Fraggable
Ok ok, I realize now the new car was a mistake... This thread is about possibly doing something to get out from under that mistake. I made a mistake, I'll own up to it. If I must I'll live out the loan and drive the car for another 4 years or so, I have no problem paying for my own mistakes.

If the market was/is such that I could drop all or most of this $6k generated by this mistake, I want to do it. I understand if you don't think it is, but... just say so.

Unless you seriously downgrade your car you won't come out ahead.

Originally posted by: iversonyin
Trade in for BMW 3 or a G35.....f--k the Malibu! You are moving up in this world. Car payment is car payment, you have to pay either way!

It's easy spending somebody else's money.

 

[LTC8K6]

My malibu has a 3.5, the LTZ is the only one that has the 3.9.

Well, it's your fault. 😀

You are the one who said your Malibu had a larger engine than the 3.8 in the Mustang and explained that it got better mileage anyway...

The only larger Malibu engine would be the 3.9...

 

[boredhokie]

Originally posted by: Fraggable

Originally posted by: iversonyin
Trade in for BMW 3 or a G35.....f--k the Malibu! You are moving up in this world. Car payment is car payment, you have to pay either way!

That's funny, I've been looking at 325's rather than Nissans. I went looking for one after work today but couldn't fine one, they dont seem to hang around any lots other than BMW stores, and the closest one is on the wrong side of town. I'd like to just see what they're like, if they're really much different than what I've got.

Never considered Infiniti's, have to look into that.

Maybe you can pawn the payment off onto your parents - they're dumb enough to let a kid who makes 40k a year and buys a shitty american car for over half his yearly income live with them rent free.

If you make 40k a year then your clients probably aren't that impressive that you need a brand new car - I'd recommend buying a late 90's lexus for 9 grand if you ever figure out a way to dump the malibu.

Of course, you'll probably end up underwater again after buying ringtones so maybe you should just keep the chevy.

 

[Fraggable]

Originally posted by: boredhokie

Originally posted by: Fraggable

Originally posted by: iversonyin
Trade in for BMW 3 or a G35.....f--k the Malibu! You are moving up in this world. Car payment is car payment, you have to pay either way!

That's funny, I've been looking at 325's rather than Nissans. I went looking for one after work today but couldn't fine one, they dont seem to hang around any lots other than BMW stores, and the closest one is on the wrong side of town. I'd like to just see what they're like, if they're really much different than what I've got.

Never considered Infiniti's, have to look into that.

Maybe you can pawn the payment off onto your parents - they're dumb enough to let a kid who makes 40k a year and buys a shitty american car for over half his yearly income live with them rent free.

If you make 40k a year then your clients probably aren't that impressive that you need a brand new car - I'd recommend buying a late 90's lexus for 9 grand if you ever figure out a way to dump the malibu.

Of course, you'll probably end up underwater again after buying ringtones so maybe you should just keep the chevy.

What the hell is your problem man? When did I say I was living with my parents rent free? Thats right I didn't. I've been paying rent for the last 3 years, as much as an apartment would cost.

I don't aprecciate your tone, it seems like you have some prejudice against me and I don't know why. So I bought an American car, get over it. My parents own a Dodge and a Chevy too, and guess what. Both their houses are paid off and they're not yet 50. Not everyone who owns an American-made car is an idiot financially.

My college is paid for, I have no debt whatsoever outside of this car. My credit rating is about as high as it cane be, so get off my back please.

 

[SearchMaster]

If I can get what I owe on the car on a trade-in, does it make sense to move up to something else?

To stick somewhat to the topic at hand, automobile dealers are not stupid. If it appears they are giving you 18K+ for the car on trade-in, it just means they're making it up in the purchase price of the new car or on the loan. Period. Now, there are instances where this could make some sense. For example, here in Georgia you end up with a sales tax break by trading in a car versus private sale. But regardless, you are in a hole and nothing you can do will solve that short of paying off your loan early and keeping the car long after it's paid off.

Now, if you have $6K cash to make up the difference and are willing to just accept the loss as a life lesson, then go for it (even though financing yet another new/slightly used car is financially irresponsible to begin with). There was a thread in OT recently about a guy who had rolled several deficient loans together and now found himself $20-30K (IIRC) in the hole on his car. Please don't duplicate his mistake(s). Please.

 

[desy]

My buddy went through 4 new cars in 5 yrs
Cost him thousands in depreciation, he is not longer addicted to new car smell 😉

 

[JeffreyLebowski]

Originally posted by: everydae
Financial-wise, you already made a huge mistake when you bought brand-new American brand car (which you already know). You will never break-even until you pay-off because of that one mistake you made.

But OP, I know you will never listen to us as our advice is totally opposite to what you want to hear. So, why don't you bring your car to dealer and see what they offer you? Who knows if some dealer offer you something like your co-worker's Kia?

Yes because my Toyota van has kept it's value higher than what I paid for it. :laugh: 99% of cars on the road are depreciating liabilities. Very few cars go up in value.

To the OP, so you don't want to pay $1500 to get a better radio, but you'rte willing to pay the $6000 you'll be upside down?

Instead of looking on Crutchfield, why not go to a Chevy dealer and see if they sell a radio that will work in your car? If you just have a standard 1 CD player, then you should be able to get a GM radio unit that looks like your current radio but does MP3/satellite ect., and will interface with the car with no adapters.

 

[Fraggable]

Originally posted by: JeffreyLebowski

Originally posted by: everydae
Financial-wise, you already made a huge mistake when you bought brand-new American brand car (which you already know). You will never break-even until you pay-off because of that one mistake you made.

But OP, I know you will never listen to us as our advice is totally opposite to what you want to hear. So, why don't you bring your car to dealer and see what they offer you? Who knows if some dealer offer you something like your co-worker's Kia?

To the OP, so you don't want to pay $1500 to get a better radio, but you'rte willing to pay the $6000 you'll be upside down?

When did I say that? I didn't.

If you'll notice, my main goal here is to lose the negative equity. Getting more features would be awesome but it's not more important than making a good financial decision now. With people getting a lot for trade-ins, I thought there was a chance I'd get some if not all of this $6K difference paid for and buy into a used... something at near-real value.

This thread is about possibly doing something to get out from under that mistake. I made a mistake, I'll own up to it. If I must I'll live out the loan and drive the car for another 4 years or so, I have no problem paying for my own mistakes.

 

[KDKPSJ]

That's why I am suggesting you to visit the dealer and see what they say. I suggest you to visit Acura, which is you're interested in, dealer as Acura has no optional package that the dealer can fool you around. It makes the buyer a lot easier to play around with the number.

Go and see what they offer you. If you don't like, just walk away. Be smart and don't sign the paper at the first visit, no matter what the salesperson says.

BTW, to be honest, even your 6k sounds too promising to me, especially if you are planning to deal with upscale brand like Acura or BMW.

 

[Fraggable]

Well I went to a local BMW dealer and drove a 06 325xi. Sticker price $25K, not exactly what I was looking for (more like a 05 325i ~$20K) but close enough. It was nice, even though the engine was smaller I could feel the difference in quality, gearing (5 vs 4 gears in my Malibu), and handling. Overall though, my impression wasn't - whoa this is a nice luxury car and totally worth carrying some neg. equity. After talking to the salesman some it was clear they weren't interested in giving me any more than $13K for my trade-in, and probably weren't going to budge much on the price of a 325 - he kept saying they were selling pretty well in spite of the market.

I decided my best course of action is to refinance my current car and keep it. I'm planning to switch my current 6-year 7% loan @$400/month to a 30-month 6% @$650. I can easily afford the increase now and I'd even go for a 24-month loan with $800 payments but that could cause problems when I go to buy a house.