Bought a brand new car in Spring of 2011, can I get a new car?

(2012-01-18 15:30:08)

1. Kyle P Says: Here's the deal...I bought a new car (my first time) in Spring of 2011. I literally liked it as soon as I saw it, I made a purchase with my heart instead of my brain. I got boned on the price, including the APR. My guess is they had some hidden APR increase with PNC and raised it an extra 1-2% to make some pure profit on me. As i've found out since I bought my car, a lot of this is normal. I CAN drive this car around for another 66 months, it's not a bad car I mean hey it's new. But for the price i'm paying for it i'm not happy with it. I'm way to tall for the car, there's no trunk space, it's a manual 4WD which in reality I wanted an AWD. I believe there are cars out there now that I can get a 0.9%APR on for a few thousand more than my car now, and come out with a lower monthly payment. The big problem would be the car is worth about 17k on KBB and I owe somewhere around 19k for it. That would be a hit i'd have to take.

My question to you yahoo answers is what are the pros and cons of this, and what steps would I need to follow in order to be put in a better car for me and end up with the most of paying equal to what I am now.

2. roger Says: well first you need to find out what a dealer will give you for it as a trade in. His offer may well below what you think its worth. All dealers have 80 hours a week to figure out how to jerk your money out of you into thier pocket. So get a real estimate on the trade in value. And then either pay it down to the trade in value and then trade straight across. is the best way to keep from getting screwed by a lowlife. greedy Dealer

3. Ramon C Says: So this car is an issue. Let me review: You do not fit in it, there is no trunk, it has a manual transmission and you lost me in your reference to the 4WD vs AWD. That means you did not sit in this car before you purchased it, you did not check or did not care about trunk space and you do not know the meaning of 4WD vs AWD. OK, then. As far as I know they happen to be the same just with different names. You do not mention the brand and model o this 2011 vehicle so it I have to make assumptions. THEN on top of all that you say your financial arrangements were less than stellar. The price you paid was too high. You signed a finance agreement that you did not understand as far as finance charges and you seek advice as to how to trade this car? So sorry for you situation but what you need is a lawyer and an accountant to inform you on contract law and financing information. The way you went about this purchase tells me you also need someone else to negotiate and arrange for the next car. I feel for you but, so sorry to be so blunt, you seemed to be totally unprepared to buy this car and you are still unprepared to buy anything else. You could end up in a worse situation. So, you need to get better educated in financing, in general auto knowledge, and in buying and selling techniques. You say you can drive this car for the next 66 months.

4. mccoyblues Says: You won't get out of this without losing a significant amount of money. That's the bottom line. There is NO WAY you'll come out of this ahead of the game. It's just not possible given the details you provided.

This is how you figure out how much money you will lose.

Call the lender and get your 10 day payoff amount. This is the amount of cash you'd have to walk into the bank with if you were going to pay off that car today. They call it ten day because the price is good for ten days. After that it will change.

Next thing you need to do is determine the trade in or wholesale value of the car you want to get rid of. Not retail, Not private party. You are trading this car in or you are selling it yourself. The best you can hope for is the wholesale or trade in value of the car. If you are lucky and get more for it then you lose less money, but assume you will at least get the wholesale value for it, especially if you are trading it in.

Now take the difference. If you owe more on the car than it's worth you are losing money. If by chance you happen to owe less than you can sell it for then you may actually make a profit on this car and you'll have some extra down payment money to throw in on the new car.

Your example says you are $2000 upside down. Check the number again. I'm guessing it's much worse than that. Especially with that long 66 month loan. You've just barely begun to pay down any principal on that loan. The first year is almost 100% interest that you are paying off.

Last but not least, check your credit score with your bank. If you don't have excellent credit (above 750) there is no way you'll qualify for a low 0.9% interest on a new car loan. Nobody goes from a high APR to less than 1% in only one year unless you have significantly reduced your overall debt or increased your credit rating. And I don't know how you could have done that with the car debt you just took on a year ago.

Is it possible? Yes of course it is. But it is highly unlikely that you will be able to make this transaction work unless you have access to several thousands of dollars in cash to buy yourself out of this negative equity situation.

I would learn to love the car you chose and learn to live with the choices you make. It's much cheaper doing that than trying to buy your way out of a poor decision.