I am new to this forum, but glad to be amongst friends.
I am in a predicament.
I used to have a 94 Honda Civic that was literally falling apart w/ 230,000 miles and I took the first car I could get because everything else looked like pure luxury. I wound up with a '06 Honda Civic DX. No AC, its Manual, only has 19,100 miles on it. In great condition. Unfortunately I still owe a little over $16,000.00 on it.
I went to one dealer who wouldn't even give me the time of day and said you need to own that car for at least another year.
I am currently working with another car dealership purely over email at the moment because I told them I don't want to get all of the way over there for them to just turn me down. I gave them all of my trade in info. I also semi buttered them up in hopes they could work with me.
Although I would love a new Rabbit I would take a used one in good condition.
I have done much research and have absolutely fallen in love w/ the VW Rabbit. I regret jumping into this situation (A little over a year ago) with my Honda and want to get out of this situation of a fast depreciating car; I didn't even talk them down! How stupid
and most importantly get my dream car.
Do you think this is possible? Or am I just going to get turned away again? Maybe I should just wait it out? Ideally I don't want to pay over $400 a month. My car according to Kelly Blue Book is worth almost $10,000.00 trade in.
I would really love all advice!!!
Thank you Guys!!
well if you owe $16,000 and your car is worth $10,000 (good luck actually getting that by the way)...then you have $6,000 of negative equity that HAS to be paid one way or another.
Unless you have $6,000 down that will have to be rolled into the new car payment:
even at 0% that will be:
$166 for 36 months
$125 for 48 months
$100 for 60 months
Then you have to add that to the new car payment:
Say the rabbit + taxes/fees etc = $16,000
at 0% that would be:
$444 for 36 months
$333 for 48 months
$266 for 60 months
So with $0 down, 10k for your car and at 0% apr (you realistically will be looking at 3-7%) you get:
$610 per month for 36 months
$458 per month for 48 months
$366 per month for 60 months
Obviously you will actually be paying more because your interest will be higher (in fact the bank may not even take you as you will be borrowing around 22k for a car that is only worth 16k)
You are going to have to bring some money for a down payment:
1) so that you can reduce the monthly payment
2) so that the bank will actually take you
3) so you can get a reasonable apr
Bottom line, after all my non-contiguous rambling, is that it takes a big down payment to get out of a car that you owe too much money on.
Thank you for your detailed response. So even if I wanted to get a used one which would be a lot lower than a brand new Rabbit and less for me to have to borrow from the bank.. still wouldn't make a difference?
What do you think?
My original payment on my loan was supposed to be roughly around 270 ish and they jacked it up to 338 because I got a extended warranty 100,000 miles bumper to bumper. Before I talk numbers with VW I am going to sign a paper saying I don't want the warranty any longer. The company said they will release that money to my auto loan towards the principle.
If my calculations are correct.. they tagged on 4,080.00 to my loan for this extended warranty. Which seems like a lot.
If they did that, that would leave me with only 1-2,000 in negative equity.
Will this be a little more do-able.
P.S. I have been talking over email with the car dealership and I gave him all of my info he said my trade in is worth between 10-12,500.
Let me know what you think!!! anyone and everyone.
The "warranty" that you bought totalled $4080...but if it was financed along with the car then some of that will be interest (which you wont get back)...and of course you have to take into account that you have used a percentage of the warranty (which you also wont get back)...
so you wont get all of the $4080 back.
Of course, whatever you can get back will help....because it means you will be borrowing less.
P.s What did the "warranty" cover...and what time period did it cover (I know its 100K...but it probably covered a time period too...if it did then the percentage that you have used up will be the higher percentage out of miles/time)
I don't remember how many years, but I have only had the car a little over a year. I bought it when it had 7,000 miles and it now has 19,100 miles on it roughly.
Will they tell me how much I would be refunded? Since he said that it will go towards my principle I had assumed interest would have been left out of it, silly me.
Thanks for your advice!
Also, you asked what it covered.. it was a bumper to bumper along with the 100,000 miles.. I forgot to add that