UMMMM, Umm OK WTHECK?!?!?!?
(edited to clarify)
@Anonymous wrote:
i bought a car about a year ago for 29k. it has been sort of a lemon define, a lemon is a technical and legal definaition of a vehicle, unless the car was used I do not understand how you are not having issues fixed under warranty and i have decided i need to part with it before it becomes more of a money pit than i care to deal with again, explain. i will probably lose about 5k in depreciation for the car when i get rid of it, less the extra taxes/title i paid when i bought it. cars do not appreciate. there is always some type of depreciation even if you do not drive it.
the car i am eyeing is about 36k. after making such a poor choice, please really really research the new choice i owe 14k on my current car and expect to get about 24k for it OK HOW ARE YOU GETTING 24K FOR A 29K CAR one year after purchase that happens to also be a lemon....., which would mean i could put 10k down on the new car, plus i would make sure and add whatever gets me to a total 12k (or potentially more) down payment on the new car. that means after adding taxes to the new car, i would be asking for a loan around 28k, or 500ish/mo for 5 years. i pay about 550/mo now, even though the note is only 380. i can afford that with my income.
1. so here is my first question. i'm just wondering the financial intelligence of selling a car after 1 year that you are basically definitely forfeiting 5k or more on due to depreciation. do you think that is smart NO, or should i consider hanging on to the car a bit longer? i am only afraid it is going to cost me a fortune if i keep it and problems continue to arise Where is your warranty?. it's hard to read between the lines and know when keeping the car is of lesser value than selling it and cutting your losses. Whatever you do there is NO JUSTIFICATION FOR A $36,000 CAR. NONE. Sorry.
simultaneously, i have excellent credit. last year my score was 775 through equifax i believe (the real score). i hope i'm not confusing that with the score you can't get...i know it's experian or equifax. at any rate, i didn't get approved for my car loan last year, my father had to cosign. the reason is because i had only had a credit card for 1 year up until that point. short history. since last year when i got the car loan, i have received an awesome AMEX card that is not easy to get and i have not been delinquent on any payments including the car loan. i feel my credit should get me the best rate or close to, even if my history is still short at 2-3 years.
2. the question i have here is where are the best rates? public institutions like JPMC, BofA, WF, etc.? or private credit unions no one has heard of? my rate is 3.9% now, i'd definitely like to see it in the 2.x or better. do you think that is achievable? only very few institutions offer 60 month rates that start with a 2.
Very few places offer loans less then 2.9% as they are simply not worth it. When a dealership is advertising a 0% rate or whatever that is a subvented rate, or an artificially low rate made to help sell cars. 1.9%, 2.25% does not occur naturally.
Navy Federal Credit Union, PENFED may offer "lower" rates that start with a 2. Eligibility with them is an issue. You can check around your local banks and credit unions- with doing dues dilligence on your part you may find a local lender that starts with a 2 or 3. In general most banks and trend to be around a 4.
thanks for all of the help.
No one can make a decision for you. its all on you. This forum is for the most part, regardless for what it is perceived, a place where people with a past of financial wreckage come to get advice.
With that mindset we must ask questions like what kind of car do you have that cost 30K and is in your eyes a lemon, and what is making you think it is a lemon.
Cars depreciate. (Unless its a collectors item or a Ford GT-and even then that tends to be a longterm purchase before it becomes profitable) They are not investments.
Unless you are making wages that are six figures with low personal debt or obligations, I simply do not think a $36,000 car is a good purchase decision-especially coming off a $29,000 purchase a year ago.
