Re: Thinking of trading 2008 BMW 328i for 2009 Lexus IS350
12-09-2008 09:09 AM
First off, waitning until Jnauary will not amke a difference. You willhave to wait until you have paid off 4k more than the car has depreciated currently. That would probably take 6 months or so. The first 2 years of any loan most of the payments go to interest, so it takes awhile to pay down the balance.
Second, a 6 year lona is always a bad thing. The rule of thumb is if you can not afford the car in a 4 year loan it is more than you should spend. Now if you can afford the 4 year loan but choose to stretch out the payment a little to give you some breathing room (with the plan on making larger/bigger payments) OK. Or if you end up in a situation where you have no choice to buy a car for some reason and that is the only way, then so be it. But, if you are buying a car for pleasure/personal desire, stretching it out makes no sense. I would at least wait until youhave the BMQ paid down a bit. Make some extra payments on it. If you can not afford to make extra payments on it right now, then you should seriously consider whether you are in a financial position to waste teh negative equity you have right now by trading it in.
Again, to each his own. I know what it is like to have to deal with a bad dealer, but how often do you reall yhave to deal with them...Not that often. Much better to suck it up and deal with them to make a bad financial decision during what is probably the worse financial crunch since the 20's.