Already wanting to trade-in?

[JessV]

Good evening, my Mustang buddies! As crazy (or not) as this sounds, I purchased my new 2015 Mustang on February 19 and already want to trade it in................................................................................... For a different model.


Not because I don't like the Mustang, how it drives, the power, or the interior.... Nah. But solely because I want to get a convertible model. I have been jealously wanting one ever since I saw one a few days after I got mine... Not to mention, I just got back from a vacation in Key West and there was nothing but V6 convertible rentals everywhere and they looked fine as hell! :eye bulge:


So it all boils down to how much I am going to be losing and how much I am going to be owing to make up my final decision and I am going to need you guys to help me. My red 2015 Mustang V6 was $26,400 signing price-- We put down $5,500, making the final 72 month loan close to $20,900. After 3 or so payments, I owe approximately $19,750 on the car. My vehicle has 6,400 miles, so I know that is going to depreciate just a bit. The convertible V6 models that I am looking at are around $31,000-$32,000.

Just a few questions;

Is the auto loan that I already have transferable or would I have to shop around, take another hard inquiry, and get a new loan?

My monthly payments are around $313 and I was wondering how much would they go up if I trade-in and get the convertible model? (I am guessing around $40-$50?)

Please tell me how everything would have to be done in this situation IF I went and did a trade-in..

Safe driving, 'Stang buddies!

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[z6cyl]

Hi! Accounting student here who loves credit and personal finance.

You'll need to take another hard inquiry and get a new loan unfortunately. You can use something called an amortization calculator to determine your payment: http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

I know it says mortgage but its the same thing, you just need the loan amount, loan term, and interest rate.

Be prepared to lose a ton of money on depreciation. I'm experiencing the same thing right now, bought a new Hyundai and now trading it in a few months later.

 

[Raoh]

I think your best choice, may be to go a few more months, and owe less on the car than you do now, as far as a hit against your credit, you can probably roll the current loan up into another loan, but if you wait a few months, the car will be worth more when compared to how much you still owe, so that ends up being a larger down payment towards the new one in the end. As far as the payments, assuming 26k was the out the door price, and 32k is the out the door price, your payments are probably going to be closer to 80 dollars more a month.

http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx

according to this at the 5.9% ford 72 month loan, a 21,000 dollar loan is about 340 a month. If you were to get back exactly the down payment you made as far as how well it kept it's price since you started driving it, you would need a 26500 loan, which would be 438 dollars a month.

 

[JessV]

Hmmm..

 

[Socalmustang]

How do you have so many miles on it already? You must've done some long road trips. I bought mine February 27 and have about 700 miles, but then again I rotate driving it with my other DD

 

[Charles147]

A chop shop will fix you right up with a convertible top

Let go of the envy and live with the jelly-ness and ragrets...you'll fall back in love with your car like you first saw it...just my 2 pennies

 

[Tamadrummer88]

Trading it in now and taking the depreciation hit is a bad financial move. It would be better to wait a year and pay more down, and see what your finances are like then. Lots of hard inquiries over a short period is not good for your credit.

 

[TheRican]

Ill take it with the deprec. hit.. Jus sayin'

 

[RoushCharged]

Unless burning 10K in effigy is something you do often ...buy a Miata for when you want to drive a convertible ... and that you can sell when you need to. Makes no sense to trade the car in now, or in two or three years. Financially shooting yourself in the arm.

 

[Asharus]

he's young. let him learn.

 

[JessV]

What about actually selling the car through an online website or dealer? Example: I owe $19k on the car; end up selling it for $24-$25k. That's a $5-6k down payment towards the convertible.. But of course, a little more of a higher payment.

 

[Raoh]

What about actually selling the car through an online website or dealer? Example: I owe $19k on the car; end up selling it for $24-$25k. That's a $5-6k down payment towards the convertible.. But of course, a little more of a higher payment.

That is your best bet, but you would need to find someone who has 24k to spend on a one year old car, when you can buy a brand new one for just a bit more.

 

[Jackie Chan]

Just wait a couple months and trade it in on a rental 15 convertible. That way you aren't taking the depreciation hit twice

 

[Tony Alonso]

What about actually selling the car through an online website or dealer? Example: I owe $19k on the car; end up selling it for $24-$25k. That's a $5-6k down payment towards the convertible.. But of course, a little more of a higher payment.

I generally use a 20% depreciation figure for the first year off the sticker price. I then include discounts you got from the sticker price as additional reduction. These are just my rules of thumb from buying cars at various points in the model year and from various manufacturers in the last 28 years.

In essence, the downpayment you made probably got you into the range of your car's worth on a trade. If you try to sell it privately, you will be competing with a new car on price. A potential private purchaser of your car might be able to buy a new car at lower than the price you originally paid. In order to move your car privately, you would need to be at a price lower than what you get new, which could reduce the amount of any payment toward a new one.

A lot of folks would probably tell you to wait, just based on pure finances. You have to decide if it is worth the extra money to purchase, based on what you might be able to recoup.

Good luck!

 

[Khyber]

aren't you the kid with the soul who basically had to claw his way into that v6 mustang...and now you want out?!

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