Can you trade in a financed evo ???
It's not always bad though. If they're upside-down on a loan with a certain interest rate (like a bad one) but get a new vehicle with a promotional APR lower than what they were paying before (or even 0%), then that outstanding balance on the loan (which they'd still pay off one way or another) would carry over and would also be at that same APR.
For example, my girlfriend had a car that she ended up being upside-down $2k on, after considering the trade-in value against the oustanding balance of the loan. But her old loan was at 8.08%, while she was getting a 2010 Corolla at 0%. Her balance was transferred to her new loan and bundled into her monthly payments, which were at 0%. So while she'd be losing some money on the trade-in (due to being upside-down), she saved almost as much on interest after I did some calculations based on the amortization tables to the point where it was negligible, and worth the small financial loss to have a brand new car (instead of her old one that had been in a car accident, was making some funny noises and was requiring some big services), albeit with a slightly bigger monthly payment.
For example, my girlfriend had a car that she ended up being upside-down $2k on, after considering the trade-in value against the oustanding balance of the loan. But her old loan was at 8.08%, while she was getting a 2010 Corolla at 0%. Her balance was transferred to her new loan and bundled into her monthly payments, which were at 0%. So while she'd be losing some money on the trade-in (due to being upside-down), she saved almost as much on interest after I did some calculations based on the amortization tables to the point where it was negligible, and worth the small financial loss to have a brand new car (instead of her old one that had been in a car accident, was making some funny noises and was requiring some big services), albeit with a slightly bigger monthly payment.
Newbie
Joined: Aug 2010
Posts: 67
Likes: 0
From: warner robins
^^ thats a good example of when being negative might be an exception lol. Anytime special rates or incentives are around dealers are looking to get you out of those upside down cars and put you in something new. Its a win win. You get a new car they get a car they can sell on the cheap.
Evolved Member
Joined: Mar 2003
Posts: 2,080
Likes: 27
From: Southern California
^ Plus now is a good time, since car manufacturers are more or less hurting for sales, so almost every company has finance specials. I remember how even Lamborghini sometime last year was offering 0% APR... which is a big deal when financing a $200-300k car. But it's mostly good if you're getting out of a car with either a bad rate or a standard one (which is usually around 7%, give or take, with Tier 1+ credit).
Thread
Thread Starter
Forum
Replies
Last Post
WTT[Northeast]: 09 Escalade
christian6932
Other Cars - For Sale - Wanting To Buy (WTB) Or Trade (WTT)
3
Dec 27, 2014 08:23 AM
LOTL
Lancer General
12
Oct 23, 2004 12:27 PM
