Upside down $15,000 and need suggestions

[sjt]

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@Credit_hawk wrote:

As an admitted car guy who purchases too many cars, like a new one a year, you have to know how to play the game. Only people unfamiliar with the car market and different brand's rate of depreciation would ever think of buying a Range or BMW, Mercedes, etc. You lease those cars, you don't buy them. After that factory warranty runs out they're worthless. Ever wonder how you see poor people driving 5-10 year old Beemer, Benz, and Bentley's? They're cheap as dirt. They depreciate like nothing you've ever seen. You can get a $200,000 Bentley for $30,000 less than 10 years later. 

You buy Toyotas, Hondas, Fords, and Chevys.

As for the cost of that loan, something isn't right. You can buy a 2017 Cherokee new for $30k. Why is your used '14 $30k? Interest alone doesn't do all that in 2 years. You must of rolled another underwater car into that loan.

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Thanks for this information! Im going to be car shopping in the next few months!

[Credit_hawk]

Glad I could help SJT. It is info I acquired the hard way over time. The first time I ever bought a brand new car I got hosed. I fell for the rebate trick where I thought "oh this car is already discounted." I paid full MSRP to the dealer in all actuality and Ford gave me the $2500 incentive. I didn't understand at the time that those incentives/rebates have nothing to do with the dealer or their wallet. It's a discount between the purchaser and the manufacturer strictly. But it benefits the dealer to have customers erroneously believe that the discount is coming from the dealer themselves.

Anyway, it's an old myth that dealers hop to when you come in there saying you're willing to pay in cash right then and there. They actually cry on the inside because they don't have the opportunity to profit off you with the financing part.

Last part, when you get in the F&I (finance and insurance) office, don't buy any of the extended warrant stuff. That's another big profit maker for them. Unless of course, it's used and is a really cheap payment for really good coverage. I know some friends have actually benefited off the tire and wheel insurance package when leasing BMW's and other pricey cars because tires and rims on those cars are expensive when they blow or get curbed. But in most cases it's a rip-off.

*Everything I say is good GENERAL information. Obviously every car or person's specific situation may change the need for extra warranties or whatever else.

[sjt]

@ CreditHawk

I really appreciate you sharing your experience. This will help alot of us out. 

I heard car dealers make alot of money on financing and was told to watch for some shady dealers that will get you financing at a higher interest rate when you actually qualify for a lesser rate.