topic Re: Thank Goodness in Auto Loans

Thank Goodness

Anonymous — Thu, 20 Nov 2014 14:58:01 GMT

Last I posted, I was looking into a S2000. The car was lovely until I ran an experian autocheck and noticed that it had reported a higher mileage that was listed on the carfax and odometer. I'm guessing it was rolled back at some point or the other and being the skeptic that I am, I passed up the vehicle - avoiding financial turmoil.

Anyways, I have been thinking and realized that I rather not drain my savings into a new car at such an age; I rather keep my liquid assets. Now I've come to a cross point, should I downgrade my car to a beater or should I keep my current loan going? I have 9k or so left to pay on a 2012 Corolla S (car only has 40k miles - interest rate is 1.24%). The used cars I'm looking at are in the 3-5k range within the 80-100k mileage range. What would you suggest doing - keep my current car or downgrade? What other options do I have? I'd like to save up as much as I can so that I can move in a year or two to the west coast.

Re: Thank Goodness

Anonymous — Thu, 20 Nov 2014 15:40:35 GMT

@Anonymous wrote:
Last I posted, I was looking into a S2000. The car was lovely until I ran an experian autocheck and noticed that it had reported a higher mileage that was listed on the carfax and odometer. I'm guessing it was rolled back at some point or the other and being the skeptic that I am, I passed up the vehicle - avoiding financial turmoil.

Anyways, I have been thinking and realized that I rather not drain my savings into a new car at such an age; I rather keep my liquid assets. Now I've come to a cross point, should I downgrade my car to a beater or should I keep my current loan going? I have 9k or so left to pay on a 2012 Corolla S (car only has 40k miles - interest rate is 1.24%). The used cars I'm looking at are in the 3-5k range within the 80-100k mileage range. What would you suggest doing - keep my current car or downgrade? What other options do I have? I'd like to save up as much as I can so that I can move in a year or two to the west coast.

I'd suggest you keep your current vehicle. Without knowing what your payments are for the Corolla and your overall financial situation I think that's your best route. BYou have a reliable car with, for the most part, fixed monthly costs and if you downgrade to cars in that range you run a great risk of eventually spending more money than you currently are. Vehicles in the 3-5k range are not known for being overly reliable and most likely have very little if any warranty. All of a sudden you could get a huge repair bill and anything you thought you had saved is gone. Ultimately the decision is yours but there is a lot to be said for having a reliable vehicle.

Re: Thank Goodness

StartingOver10 — Thu, 20 Nov 2014 16:16:59 GMT

turbine, your post is so refreshing to see.

Having said that I agree with the previous poster that your best bet in your particular situation (given the info in your post) is to keep your current vehicle.

Re: Thank Goodness

Gunnar419 — Thu, 20 Nov 2014 16:35:31 GMT

Turbine,

Great choice to forego a vehicle that looked too good to be true and that would have stretched your finances until they squealed. Good detective work, too. Kudos to you!

I agree with the others. Stick with the known for now. Keep what you've got. Downgrading could lead to bigger, more unpredictable expenses for repairs.

Re: Thank Goodness

Anonymous — Thu, 20 Nov 2014 16:46:57 GMT

Yeah I would keep what you have. A corolla s is very nice and should last a long time, well after its paid off.

Re: Thank Goodness

Anonymous — Thu, 20 Nov 2014 18:00:30 GMT

First off, it's nice to hear I made a logical decision. Second off, the vehicles I were looking at were closer to the 4-6k range actually - 1990s miatas/integras at 90kish miles.

Irish80 wrote:

turbine wrote:

I currently have a minimum payment of $244 but pay $300. I believe the original loan was for 4 years, I currently have 38 months or so left of payments if I pay the minimum amount each time. Insurance (full coverage) comes in at $90/mo and I spend about $50-60/mo on gas. I take home $1850-$1900 gross/mo or about $1550-$1600 net per month. I enjoy having an easy and cheap car to maintain - the only downfall is the color - I hate owning a black car.

Re: Thank Goodness

Anonymous — Thu, 20 Nov 2014 18:57:54 GMT

@Anonymous wrote:
First off, it's nice to hear I made a logical decision. Second off, the vehicles I were looking at were closer to the 4-6k range actually - 1990s miatas/integras at 90kish miles.

@Anonymous wrote:
@Anonymous wrote:
I'd suggest you keep your current vehicle. Without knowing what your payments are for the Corolla and your overall financial situation I think that's your best route. BYou have a reliable car with, for the most part, fixed monthly costs and if you downgrade to cars in that range you run a great risk of eventually spending more money than you currently are. Vehicles in the 3-5k range are not known for being overly reliable and most likely have very little if any warranty. All of a sudden you could get a huge repair bill and anything you thought you had saved is gone. Ultimately the decision is yours but there is a lot to be said for having a reliable vehicle.

I currently have a minimum payment of $244 but pay $300. I believe the original loan was for 4 years, I currently have 38 months or so left of payments if I pay the minimum amount each time. Insurance (full coverage) comes in at $90/mo and I spend about $50-60/mo on gas. I take home $1850-$1900 gross/mo or about $1550-$1600 net per month. I enjoy having an easy and cheap car to maintain - the only downfall is the color - I hate owning a black car.

Embrace the black! I just purchased a black car for the first time. Yes, pain in the butt to keep clean but when they are clean, nothing beats the color.

on the main point, you're doing the right thing. I've seen too many people downgrade for the same reasons you are considering doing so and ended up regretting it big time. Good luck with your move west.

Re: Thank Goodness

Gunnar419 — Thu, 20 Nov 2014 19:11:18 GMT

@Anonymous wrote:
the only downfall is the color - I hate owning a black car.

LOL! Understood. If there's a speck of dust in the whole county, it'll show up on your black car, along with fingerprints, mud splatters, etc.

You could always get creative, though. Like ask your local grafitti artists to have a go at it. Throw a drunken party and hand your friends cans of spray paint. Sand the paint off so you have a silver car (then brush the surface and tell everybody it's a DeLorean). :-)

Re: Thank Goodness

Anonymous — Thu, 20 Nov 2014 20:15:17 GMT

@Gunnar419 wrote:
@Anonymous wrote:
the only downfall is the color - I hate owning a black car.
LOL! Understood. If there's a speck of dust in the whole county, it'll show up on your black car, along with fingerprints, mud splatters, etc.

You could always get creative, though. Like ask your local grafitti artists to have a go at it. Throw a drunken party and hand your friends cans of spray paint. Sand the paint off so you have a silver car (then brush the surface and tell everybody it's a DeLorean). :-)

I don't think that's a good route to take lol. But I've driven myself to no end trying to clean up the paint. To get it done professionally, I'm looking at $800 and upwards.

Re: Thank Goodness

sccredit — Thu, 20 Nov 2014 22:02:34 GMT

Having owned a few black cars I can tell you that a quality detail guy makes all of the difference in the world. I don't know who or what would cost $800, that just seems ridiculous. I used to have my guy come out for a full detail for $125 and if water spots were involved and it needed an acid bath it was $225. That included buffing, shampoo, headlights, everything.

Re: Thank Goodness

StartingOver10 — Thu, 20 Nov 2014 22:29:25 GMT

^^^This is so true! I keep a pretty clean car (most of the time) but when I get that urge to look at a vehicle replacement I spring for the full detail and am once again happy with my car

I too had a black car ...once. It was great when it was all buffed up and detailed, but I'm a Realtor and spend a lot of time on the road. It needed lots of detailing....

Re: Thank Goodness

0REDSOX7 — Fri, 21 Nov 2014 01:40:53 GMT

I have a local guy that does amazing work for 120 (plus 30 tip) and my black accord has never looked better. No more paint swirls for sure.

Re: Thank Goodness

Anonymous — Fri, 21 Nov 2014 04:55:07 GMT

I wish I gould find a decent shop that would do a solid detail at that price. I went to two shops, one quoted me $650 without a protectant and the other was $900 after everything was said and done (protectant included).

Re: Thank Goodness

StartingOver10 — Fri, 21 Nov 2014 13:40:17 GMT

@Anonymous wrote:
I wish I gould find a decent shop that would do a solid detail at that price. I went to two shops, one quoted me $650 without a protectant and the other was $900 after everything was said and done (protectant included).

For a detail? Or for a paint job?

I never heard of such high prices for a detail job.

We have detailers everywhere here...very competitive in our area. $100-$125 is normal. If you go an a certain day, they will give a discount. Even the mobil detailers that come to the office while you work are that range or even a little bit less with negotiating.

Re: Thank Goodness

Anonymous — Fri, 21 Nov 2014 14:34:14 GMT

@StartingOver10 wrote:
@Anonymous wrote:
For a detail? Or for a paint job?

I never heard of such high prices for a detail job.
We have detailers everywhere here...very competitive in our area. $100-$125 is normal. If you go an a certain day, they will give a discount. Even the mobil detailers that come to the office while you work are that range or even a little bit less with negotiating.

Just a detail - which would consist of a 3 stage paint correction (removing swirls/light scratches/etc). I should probably look into mobile detailers as well.

Re: Thank Goodness

Dj4Money — Fri, 21 Nov 2014 22:38:42 GMT

That's alot for detailing, defiantly look into mobiles.

While I think a Corolla anything but maybe the XRS is about as exciting as dish water and apparently you felt the same way as you were looking at sports cars. If you really want a Miata, I would suggest going that route and here's why.

They can pick up fairly cheap used, I like the 2nd gen because the 1.8L has more tuning options. I would just save up the cash and buy one in good condition. As long as it's been well maintained, no major issues should pop up. You could get an automatic with almost certainty it was never driven hard

But who buys a sports car with an autotragic??

I would highly recommend joining one or two of the most popular Miata forums and ask what you should look out for.

Alternatively if you aren't too upside-down in your Corolla you could get a hot-hatch like the Fiesta ST and not pay much more a month.

I don't mind spending $3-5K on a Miata if it's not my primary mode of transportation. If you add a turbo kit or if you can get one of twin screw supercharger kits floating around the internet, then at some point the engine might need some rings and/or bearings. But other than that, it's a hoot to drive with 130hp, it's perma-grin with about 250hp.

Re: Thank Goodness

Anonymous — Fri, 21 Nov 2014 21:34:11 GMT

@Dj4Money wrote:
That's alot for detailing, defiantly look into mobiles.

While I think a Corolla anything but maybe the XRS is about as exciting as dish water and apparently you felt the same way as you were looking at sports cars. If you really want a Miata, I would suggest going that route and here's why.

They can pick up fairly cheap used, I like the 2nd gen because the 1.8L has more tuning options. I would just save up the cash and buy one in good condition. As long as it's been well maintained, no major issues should pop up. You could get an automatic with almost certainty it was never driven hard But who buys a sports car with an autotragic??

I would highly recommend joining one or two of the most popular Miata forums and ask what you should look out for.

Attentively if you aren't too upside-down in your Corolla you could get a hot-hatch like the Fiesta ST and not pay much more a month.

I don't mind spending $3-5K on a Miata if it's not my primary mode of transportation. If you add a turbo kit or if you can get one of twin screw supercharger kits floating around the internet, then at some point the engine might need some rings and/or bearings. But other than that, it's a hoot to drive with 130hp, it's perma-grin with about 250hp.

At this point, having two cars is not an option so I would have to make the Miata my daily. Unfortunately for me, around here a good condition Miata runs around $6-10k - unless you're lucky enough to find a seller who doesn't increase the price just due to it being a sought after drift/autocross toy. I don't want to get into having a bigger car payment or bigger loan when I'm trying to save as much as possible. I will look into mobile detailers and see what they quote me.

Re: Thank Goodness

Dj4Money — Fri, 21 Nov 2014 22:58:43 GMT

Have the blue book value at around $10,3xx. You say you owe just over 9K? Is that your ten day? You already have a low interest rate, that would likely happen again with a new loan.

There a few used Fiesta ST's out there. For the price of 2014/2015 Fiesta ST with standard equipment (400A), you can get a used 2014 Fiesta ST loaded (MyFordTouch Navigation, Recaro Seats, Sunroof) for the same price, around $19K.

Take your 5K down and your looking at $15-16K after T,T & L; it wouldn't be too bad since I don't know how much you financed to get the Corolla, but it looks to me it would be about the same.

If you got a new one, True Car has package 400A going for $19,910 locally here (Los Angeles area). You can get 0% for 72 months + $500 cash back. Or you can take $1,500.

These aren't as aggressive as they were last month ($1,500 cash back + $1,000 trade-in credit on '14 Fiestas).

Something to think about.

Re: Thank Goodness

Anonymous — Sat, 22 Nov 2014 06:23:50 GMT

I see the point you're trying to carry over but at the same time, I'm not a fan of domestic cars in general and much rather stick to a jdm sedan/coupe. I originally financed the loan for 18k in 2013.

Re: Thank Goodness

Dj4Money — Sun, 23 Nov 2014 03:05:32 GMT

@Anonymous wrote:
I see the point you're trying to carry over but at the same time, I'm not a fan of domestic cars in general and much rather stick to a jdm sedan/coupe. I originally financed the loan for 18k in 2013.

I am just trying to understand your logic, bare with me.

You bought a 2012 Toyota Corolla and you clearly miss performance, as the S looks sporty but isn't. Wasn't a 2012 Honda Civic Si sedan the same price used? Wasn't a Mazda Mazdaspeed 3 available for the same price?

Granted you would have to search hard and possibly accept a car with higher mileage but as you said your a fan of JDM cars so having higher mileage shouldn't be a concern right?

I also think Mazda is still ahead of Toyota in resale value.

Now you want to trade your car away for no payment and less reliability and your considering 2 seat sports cars when your life could be dramatically different in four-five years?

You even got a great interest rate you could have had a "performance" car it seems to me, especially if you had to borrow $18K, I know you could have gotten either one of the used cars I just mentioned for that.

If you got $10K for your trade, it seems to me you could get 100% financing at the same rate, borrow $15-16K get a Mazdaspeed3 or Civic Si Mugen Sedan for that amount in very good condition and still come up with a lower payment than you have today.

The only downside is you would have to pay an additional two years.

Now if your totally embracing Dave Ramsey, then he would suggest you sell the car while you can get something for it. Take your $3.5K and get a beater but have a plan; save your current car payment for a year or two. Take that 5K and a year's worth of payments (assume $250 a month = $3,000) for a total of $8,000 and get your next car.

Rinse and Repeat until you get the car you want.

At about $14K you will start getting into the S2000's in mint condition. Using this tactic you can get your mint condition S2000 in about two years.

But honestly I would consider the Mazadaspeed or Civic Si, they are fast, fun to drive and you can grow into them.