This could happen to any car, not just the Scion...scary...

Well I had my Scion tC for around a year now and I love it. It has 19,000mi on it and its going strong. However I was just curious to see it would be possible to go to a 2009 Mustang GT (traded in my 2001 Mustang GT for the Scion). So I went to the dealer and of course he was trying to give me a run around. So I asked him how much for a trade in, he looked in his little book of his and he said 13,500 - I was shocked that it would down that fast in price. I asked him for the book to see and sure enough it did say 13,500.

Right now I have around $22,000 left on my car due to the fact I had $3,400 (from the Mustang) roll over to the new loan.

In short, in order for me to trade it in for a new 2008/2009 Mustang GT, I need at least $10,000 to become "even" with the trade. Even then my payments will be at least $550 a month...

Also, if I want to keep the same payments I have right now, I would have to come up with at least $16,000.

...or I can pay around $700 a month and get it (with 0 down), but I don't have that money.

I even asked the guy about a used Mustang - it will be the same issue.

*sigh* I wish I can return all the stuff I bought this year and put it towards the amount of the car.

 

trading a car that u had for 1 year only is the worst year to trade ur car in. wait after another year or so...

 

im trying to sell my used tc right now in the first year of ownership and it is pretty hard, they want some extra down as well LOL


BUUTT about the GT, i say figure something out! its a beautiful car, a close friend of mine has a black 06 gt with black rims and tint and strait pipe exhaust, the car was basically mine because i would always drive it.. its so fun! just hearing that big V8, everyone would always give a thumbs up

and the best thing is for the most part, cops leave you alone
alot more than they would in a scion, i think they like muscle cars lol

i say do what you can do to get it! u will love it

 

I paid $1200/month for a year and almost had my tc paid off.

it hurt but now I have a new car paid off in a little over a year

 

I wish I could do that, but bills...bills...bills...

 

Wha?? You were upside down on your mustang, so you rolled that amount into the tC, now you're looking at being REALLY upside down in the tC and you're looking at buying a new car and losing even MORE money?? You get screwed every time you buy/sell your car. Taxes, title, fees all go *poof* into thin air, and your car depreciates the moment you drive it off the lot. So now you're left with a $13.5k car and $22k in debt...

Hate to say it, but with the crackdown in lending you're not getting into a new Mustang anytime soon.

 

this is what we call in the car industry being tanked. You can never get away from negative equity unless you pay cash or put alot of $ down at the time of purchase.


If you really want to get out of the tc look for vehicles with good rebates. Im sure ford is dying to sell anythig right now.

 

yea i agree with everyone. i mean with that negative equity of your 2001 mustang and interest your first 2 years almost is like paying the interest unless you financed for a year instead of the standard 5 years. thats why like he said you never trade in a new car in the first year of two unless you had alot of money down or watever certain situations. and the reason they are asking for money down, no dealer's bank is gunna buy a loan with that much negative equity. im pretty sure its like 130 percent is all you can finance of the new car. in your case your gunna have to wait a good amount of years, or deal with a huge monthly payment.

 

During your first year, you're gonna be deep in the hole. The interest and depreciation make it seem worse than it is. Give it 2 more years...you'll owe barely anything on the car, it will still be worth a good amount, and the new Mustang will be coming out.

 

and even if you agreed with that 700 monthly payment i highly doubt they will get it approved. i dont care how good your credit is.

 

yup x2


see it everyday, people want more expesive cars having negative equity at the same payment not so much.

 

^^ yea i mean i had a customer with 784 credit score, upside down 3 grand on her trade and wanted 1500 worth of upgrades. toyota motor financials wouldnt buy the loan until we took out the 1500 and she had to put 500 down. i kno most dealerships dont care but i mean i wouldnt wanna sell a tc to a person for a 600 or 700 payment when a normal one no money down is 384. id feel bad hah. but plain and simple wait 2 more years or win some money.

 

oh and yea if you buy used. it might be a little less, but used car interest rates are always higher no matter wat. and even if you got a car for 0 percent financing for 5 years it wil only save you around 65 bucks a month.

 

he owes $22 thousand dollars with (I'd assume) 4 years left on a 5 year car loan. He's not coming anywhere near paying it off in 2 years unless he starts doubling his car payments. in another 2 years he *might* be back to being right side up, but I doubt it. chances are he'll be down to only owing 12 or 13k and his car will be worth 10. welcome to long-term payments on a depreciating asset...

^^^ JT3, is your dealership even still offering loans for more than the vehicle is worth? jeez, that's what got America into the credit crisis in the first place. you borrow 130% of what the car is worth when you buy it, then you drive it off the lot and the car depreciates by 20% instantly. D'oh! :facepalm:

 

His initial loan was roughly $27,000, with the negative equity added on. That comes to about $5,000 a year. In two years, he will owe around $12,000, which is a little more than what the car will be worth. The car lost value fast, but it will continue to hold that value for a while. So if he holds out til the new Mustang comes out, he could break even, and then start over with a fresh new financial term.

 

yea carbon ur rite. a car depreciates so much once of the lot but the scions and mini coopers in years after that hold there value well. so yea it wont be paid off but he will be so much closer to be ok i guess haha.

and dante. toyota told us the economy hasnt effected us as close as other car makes, but literally two months ago you could have 650 credit score be negative 4 grand or around and maybe put 500 down and it would get spoted and deleivered that day. and scion was alot about not having to put money down.; now im having to ask money down from people whos credit is around 690 and have no past dues or anything. so it dosent suck yet but its starting too

 

Wow...thanks for the advice so far

Anyway, right now I owe $22,000 on my car with ~5 or so years remaining the loan and I originally financed ~$25,000. Now I can make a bit more per month and judging by that in one more year I can hit around $17,000 or so. However if I put more - it will of course go down.

 

yea because toyota is simple interest, no penalties or fees to pay more. even if you did that in one year your still going to be not in the best situation. yes alot better but still not where it be the smartest move. i dunno id say do what u want .but id make the move when it was the smartest time to do it. you really always want to break even. its not the best to show you keep rolling over equity

 

You have a nice car. So many people would love to have as nice a car as you have right now.

You are in a hole with your loan, and I mean a deep hole. If you totaled your car today, you would owe over eight grand after insurance payoff. Even if you have gap insurance, it may not cover the amount you rolled over from the previous loan. Now you want to dig that hole even deeper.

I mean this in the nicest way possible, but you really need to put that pipe down and stay away from car dealerships for at least a couple of years. Just concentrate on keeping up your payments and find enjoyment in what you have.

There will ALWAYS be a better car out there. Right now you don't need to be the one driving it.

 

Great advice psyontc.

I'm in a similar boat as you SmoothJ, I bought my car (used, however) and had a minimal upside down payment from my other car ($1,500).

After having my car for about a year I owe $15k, and want something else. Bigger, faster, better. STi. I found one, almost bought it, then I remembered something.

Why buy another car, owe an even more amount of money, and give more of my hard earned money to a bank? I decided to be happy with what I have for now, till making a 20k purchase is a more minimal deal.

Think of it this way... i'm sure your financial situation will improve in say 5 years. Economy will (er, should) be better by then, etc. Why buy a GT now and struggle with the payments when in 5 years maybe you can swing a Roush? Thats how I looked at it.

I didn't REALLY want an 05 STi, I want a new body style. So instead of settling, i'll wait it out. Have my tc paid off in a few years, sell it and have a fat down payment on my new STi.

I see people walking/riding bikes/taking a bus ALOT now so it makes me not so discouraged to get into my car and know I can afford the gas and expenses that go along with owning my car.



Thats just my opinion though... you got to make the choice for yourself. I just know from experience that when you get too hyped up and make bad financial choices it hurts later, lol. I bought a brand new quad against ALOT of my girlfriends opinions, and now i'm stuck with a $207 monthly payment and I haven't ridden it in a year.