Senior Contributor
mickie08
Posts: 3,299
Registered: ‎04-22-2008
Re: Thinking of trading 2008 BMW 328i for 2009 Lexus IS350

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.