The problem here (ignoring all the backstory and credit woes) is that they have pulled the classic dealer "shift numbers" around trick on you and apparently you have bitten.

The price isn't really $31,600 like you suggest (and frankly, you should know better than to believe this -- ever heard the saying "if its too good to be true..."). They are just making the price on the car sound good by shifting some of the cost to the backend. In other words, overpricing your gap/extended warranty, giving you less on your trade-in, and giving you a really damn high APR.

If they took all the same numbers but instead offered you $9500 on your trade in, they could tell you the Evo was $21,600 but the bottom line is the price is the same as before. Make sense?

But ignoring all that, why in gods name are you even considering buying another new car when you are $15,000 dollars upside down already, having to get a 6 year loan at over 10% and $900/month!!!!!!!, and you mentioned you had enough credit card debt that best case it will take 3 years to payoff. Stop looking at things from the perspective of monthly payments and start looking at them from the perspective of what they are actually costing you -- have you done the math to see how much of your monthly payments going out are in interest? It has to be something ridiculous! Now imagine what you could do with that money if you were out of debt!

If you want some valuable advice, pay off your credit cards and get out from under the hole of your current car loan. At some point you have to clean up this mess you have created and the sooner you do it, the easier it will be.

 

ARM stands for adjustable rate mortgage? No way.

I am not going to get it in with you on how poor of a decision this would be. If you can't see it. Well there is not much I can say. This was my message.

If you have credit card debt, why on earth would you go further in debt?

Being in debt enslaves you.

Also, better look into refinancing. You will be refinancing a used car now, that is most likely way over booked. Making it quite difficult. But what do I know, I am just a 800lb gorilla in the thread.

 

OP posted started a thread asking if the car was a good deal, which it would be if that was the price before working in all the extra b.s. The vote just seems to be a way of justifying a bad decision and then when people point out the facts and give feedback into the situation, the OP gets defensive. Common sense says to put that $3600 towards the CC debt, I'm sure the interest rate is outrageous figuring your car loan would be 10%, you're losing money on your CC payments, your trade in and the money you could be saving/investing every month instead of acquiring more negative equity. Don't post threads asking for peoples' opinions if you don't want them, and don't call the people out who voted poor, because they actually have the sense to look at the details of the offer and what you'd be losing. The price is not $31,600 period. The dealer knows this, most of the people on here know that, but OP seems to think by looking at the fact that you have some money to cover the payments and the X's portion of the contract looks ok, then it's ok to do it. You have last opinion, but for that monthly payment you should be paying off your current debt. Just because you have money to spend doesn't mean it helps the economy to do so. The money isn't really yours if you minus the CC debt, loss in trade in and negative equity. You're just adding to consumer debt.......BTW, it isn't $31,600, it's $34,000 MINUS your down payment to get it to that point, in which you're still getting &^$% lol


There I vented

 

you should call her....

 

 

Good point that I hadn't thought out, but our credit union will refinance a car less than 2 years old, with the original owner, as if it were a new car deal


Good Summary.
I'm not sure it isn't a moot point in saying so, but I've been annoyed, not defensive, at the fact so many people are assuming to know things they can't about my situation, and telling me how to handle my finances instead of answering the question I asked. Part of that is a matter of how one chooses to look at this deal. I accept that buying a new car creates an immediate loss. I accept that that immediate loss must be rolled into the next loan if I haven't paid it down. That said, I am financing (not buying): $31.6k for the car, TTL, Add-ins. I'm getting a fair value for my trade, and the bottom line is that I'll FINANCE ~$48k and I'll PAY my monthly payments. Because of my financial situation, in 2009 and 2010 I will pay off all my existing CC debt and as I hit certain milestones, I'll refi to bring down the rate and payment, which will help me further pay down debt as more cash flow opens up.

The price isn't $34k - Down. Look at the math again. If that were so, I'd be financing more like $51k.

The thing is, you can look at it however you like, but the numbers are what they are.


Option A
Current Loan(34,000)
Trade 19,500
EVO X MR (31,600)
Down Payment 3,600
T,T,L. (2,500)
Add-Ins (2,500)
TOTAL FINANCED (47,500)


Option B
EVO X MR (31,600)
Trade 19,500
Down Payment 3,600
Current Loan (34,000)
T,T,L. (2,500)
Add-Ins (2,500)
TOTAL FINANCED (47,500)


Option C
EVO X MR (38,600)
Trade 26,500
Down Payment 3,600
Current Loan (34,000)
T,T,L. (2,500)
Add-Ins (2,500)
TOTAL FINANCED (47,500)


Option D
EVO X MR (36,000)
Trade 19,500
Down Payment 3,600
Current Loan (34,000)
T.T.L. (2,500)
Add-Ins (2,500)
TOTAL FINANCED (51,900)



In all 3 options, I'm financing $47,500, making the same monthly payment and ultimately paying the same. The only differences between option A and B is ordering. In reality It doesn't matter if you say that I'm paying $34k minus DownPayment, or paying $31.6k and applying the downpayment to reduce the amount financed. It's all semantics. Since $19.5 IS a fair trade in value for my WRX, it does make sense to look at the price of the X as $31.6 (Option B and C can be compared to see this). Option D on the other hand represents all the facts but with a price that tracks Invoice more closely. To be completely honest, I likely would have gone for this deal IF a bank would have taken it AND I got a decent rate (something more like 6-8%).

This brings us full circle to the point of my post. Is $31.6k a good price for an EVO X MR?

I do appriciate all the concern out there, but some of the folks who have posted need to learn some tact or basic interpersonal skills. Telling a grown man that he's making bad financial decisions will rarely ellicit a positive responce. I like to think I'm mature enough that I would take that feedback better and I believe my posts would demonstrate as much. What has annoyed me is how many people assumed to tell me how I should handle my finances when I was merely asking if the price I'm being offered is good or not (or somewhere in between).

At any rate, the trade in offer is fair so my negative equity is what it is regardless of the price I'm being offered. TTL and Add-ins will be as I choose regardless of the price also. My interest rate is based on my credit and amount financed which I can't control at this moment, but will be affected over time by my financial decisions and that's neither here nor there as far as this thread is concerned. What remains a factor that can be controls, and which I do seek feedback about is the price ($31.6k). Based on my research and the Poll, it looks like that's a very good price.

Myself and I'm sure other folks who might read this thread, and who follow Forum ettiquite, would be greatful if further posts would stick to the topic.

Thank you

P.S. I'm going to refrain from spending any more time replying to off-topic posts, or those with negative attitudes but of course anyone with less discipline or self-control is welcome to rant or vent as they see fit

 

If you really thought this was such a good deal you would have already bought it.

You came online to post it up, hoping people would 'encourage' such a terrible decision so you would have justification to pull the trigger.

Then you get mad and defensive when people point out the terrible trick that was either a) pulled over you b) you knew all along which is why you didn't sign days ago...
and get mad. As others have posted, if you think the deal is so good and that you are in control of your current situation then why care what strangers online say? Do it and live with the consequences, good or bad.

If you do, you will continue to be on your finances, but if it makes you happy...

You can (and will do) what you want, and if such actions make you happy is fine; you are ultimately the one that has to live with the consequences every night. Just don't get mad at others when you post an "open poll" and ask for and don't get the responses you expected.

Good luck!

 

You know that the price they offered you on the MR is a good one...why do you need opinions? Just go over to the thread where people are talking about paying $36k to $41k for MR's and you will see that they price is way below what others are paying. I paid $500 below invoice for my MR with Navi and the body kit two weeks ago; so I would have jumped on an MR for $31k. Just buy the car or stop posting.

 

The price I put in ($48,816) is the cost of the new car + the interest payments on the cost of the new car only, the negative equity is in addition to that.

Unfortunately for you that statement is neither short sighted nor off topic.

You are the one that posted a thread asking if you were getting a good deal. The overwhelming response is that no, you are not getting a good deal.

If you are desperate to get this car (as it seems you are) and are willing to finance your future to do it. My advice to you would be to go and finance all of your negative equity into a shorter term personal loan. Using your down payment to pay down that negative equity rather than making a down payment on the new car.

Then find out if you qualify for the 4.9% deal mitsu is offering. If that fails get financing through e-loan or someother outside company. You should be paying less than 8% to finance a new car right now. Financing your negative equity will be a little more expensive (probably 10%-15%). If you get this financing in place see if your dealer will still honor the $31,600. My guess is that they won't, and that's why it's a bad deal.

Buying cars makes no economic sense, the guy that has had 150 cars in 3 weeks probably knows that. But if you can afford it and it's what you enjoy then go for it.

It is clear from what you have said that you cannot afford it. To be able to afford it the cars need to be worth what you owe on them minus what cash you have available to put into them. Essentially you need to be able to walk away from each car owing nothing when you are done. That's what you have been unable to do. You are continualliy refinancing your old debt on your old cars. So while it is true that negative equity is not part of the cost of a new car, you should probably factor in the cost of the interest on the negative equity as part of the cost of the new car.

What you are doing is unsustainable. Right now if you can make the payments and if banks are willing to loan to you on a new car, they will probably be willing to loan to you to help you get out of this mess. By the time you are in trouble, no one will be willing to lend you money to get out of it.

Take this advice from someone who has been there.

 

Which dealer are you buying this car from?

 

I think your's is the first post that's actually on topic I'm actually working to secure financing right now, but I'm not commited to the deal yet so I'm dilligently reviewing and reconsidering things while I still can. Based on the 2 finance options I'll have to choose from, I'm 90% sure I'll have the car by monday, but it is a weekend and already nearly 5pm EST (most banks close by 1pm on Saturday anyway).

 

I've refrained from posting in this thread for a number of reasons but I can hold back no longer. You my friend are a "Larry", pure and simple. Anyone who is dumb enough to look the one imaginary number in this hot mess of a deal needs some serious help. I could break it all down bit by bit as I have done on numerous posts of this sort before but it would be of little use. The OP is blinded to all forms of reason and logic. If you are dead set on getting raped and making the dealer about 5-8k off of this deal alone, then by all means do it. Maybe you will get lucky and total the car in a month and the GAP that you bought will magically dig you out of the mile long pit you have happily flung yourself into. What is really scary about the OP is that this "snapshot" of his financial genius is probably not the limit of his financial prowess. No wonder why we are in the "New Depression", if this is what most Americans call "good" financial decision making. To the OP, I am not dissing you at all. I WISH that I were as naive and ignorant as you are. I would have sooo much nicer stuff and probably be a lot happier and not even care about the state of the current economy. Because hey.. I make good money and I can pay all my bills etc.. What does the global economy circling the drain have to do with me? Amirite?? Then again, he could just be a troll.

 

ok, I'm going to get "on topic" for at least half of this post.

The question you actually asked was "Is $31,600 a good price for an MR?" The answer to that question is - YES!!! It's an incredible price. I wanted to know the dealer because I'm looking for an MR right now. If I can get a similar price I will buy this week.


Now to go "off topic".

The question that I think is more important, and the question that most in here are answering is "Am I getting a good deal on this MR?". Hell no!! We think you are getting raped on this deal and trying to help you make the best of the situation you are in.

 

Thank you for the response


Thank you for the concern


I'm purchasing from Mark Mitsubishi in Scottsdale Arizona. If you call, please ask for Rory and tell him Sabba sent you.

 

Seriously, that's an awsome price! However, the best option would be to immediately flash the ecu in your current ride, to freshen it for yourself. Then, pay the biss off(you said you make good money) and when the Evo XI comes out and its bugs are completely ironed out, you will have a nice chunk of change to put down.