@vampireszombies wrote:
Currently 4.95% and owe 21,800 on Nissan Juke. (Overpaid on it, bad deal at start)
Looking to trade it. Dealer offering 15,500 for Juke (may go to 16)
Sonata is 31,000. My downpayment is 3,000.
So, Juke 15,500 + my 3,000 downpayment = 18,500
Owe 21,800 - my trade/dp of 18,500 = 3,300 will rollover to new.
31,000 + 3,300
Making the car 34,300. (Sticker price is 35,000)
I was approved for 4.5% and my bank not willing to budge on my current 4.95.
Dealer said that was only the pull from Hyundai and may get a better rate when they submit to other banks...
So all in the end my monthly payment with the 4.5% will be approx $50 more than what I pay now.
I just would like to get out of this car that I overpaid for and get something worth paying the high payment.
-Would the Sonata depreciate just as fast and force me back into the same boat I am in now? I'm just thinking that since the final amount is actually slightly lower than the sticker price I am a little ahead... Since on the Juke sticker was 24 and I ended up paying 27.
Thoughts? Suggestions?
Thank you!
It sounds to me that you're not happy being in a vehicle that you're underwater on. In my opinion, rolling over negative equity will not help the situation. You'll be losing money on the trade in, and I'm sure you'll be paying a lot of mark-up on the sonata too. You are already $6k in negative equity on the Juke. If you purchase the sonata, you'll be adding another few thousand to you're already negative equity depending on mark-up plus TT&L. I'm not including your $3000 down payment.
To answer your question, yes purchasing the sonata will force you to be deeper in the hole. Not because it depreciates faster/slower, but because you'll add mark up costs to the final loan. FYI - sticker price means nothing, only a marketing tool to make consumers think they are getting a good deal. Vehicles are depreciating assets, it doesn't matter much which depreciates faster if you are already in a vehicle. The best way to get the most value for your depreciating investment is to drive the vehicle until the wheels fall off. There will be a time where the car is paid off, and all you have to pay is gas and maintainence. Don't extend this time.
Here is my bottom line advice. Apply the $3000 savings that you have towards the principle of the loan. Get the loan down to $18800 and make $50 extra principle payments every month, because you said you could do it on the sonata. And then drive the Juke until the wheels fall off. I'm guessing the banks wont refinance you because your LTV is too high. Keep in mind most banks wont refinance a vehicle over 110% LTV. Some lenders may go up to 115-120%. With the principle payment I'm hoping you will fall within these ranges. You stand a better chance in getting a lower rate. Ask your bank for the decline reason. If they say collateral value too low for loan amount, this is what they mean. You can always check by applying for the loan and asking for $3000 less than the payoff amount. If they approve then you can apply the principle payment.
I'm not sure if this is what you came looking for, but these are my thoughts and suggestions. I hope it helps.
