need financial advise

[flexygrl]

need financial advice

Hey All,

Hoping someone with expertise can help me...

I have an 02 eclipse GT. This thing is a gas guzzler. I just figured out how much I pay for in gas a month...$250. I commute over 100 miles a day. I was thinking of trading in my car for a more economical Toyota Echo. Yes, I know how ugly this car is, but I'm throwing so much money away a month it's sickening. For a trade in, according to Kelly Blue Book I should get around $7K...I'm hoping to pay for the rest in cash. So, does this make sense? BTW, I have absolutely no debt right now, except for my student loans. Please advise. Thanks in advance.

 

[bran987]

how much does an echo cost and what kind of mileage do you get?

 

[flexygrl]

Echo is between 11k and 15k
and it gets 41mpg highway

 

[Dial_tone]

Are you driving highway miles at highway speed? It might be worth a shot to save $100+/month. Less than that wouldn't be worth the hassle to me.

 

[flexygrl]

Are you driving highway miles at highway speed? It might be worth a shot to save $100+/month. Less than that wouldn't be worth the hassle to me.

I drive almost always on the highway!! I live on Long Island. You have to take the highway to get ANYWHERE!

 

[jerkbox]

only 7k for an 02???

 

[flexygrl]

only 7k for an 02???

Yes! I know this sucks! That's depriciation for you. I'm lucky if I get that much. My car has over 70k miles on it and it was keyed by my lovely neighbors. Oh, also there is a loose fuse in the radio, cause the display doesn't work anymore and sometimes you have to turn off the radio to change the stations.

 

[sawastea]

Ahh, yes, Long Island. It takes forever to get from point A to point B, esp at rush hour

I remember one time it took me 4.5hrs to get from Smithtown to downtown Manhattan. F'n 495 and the Southern State

 

[jerkbox]

i dunno....sounds like you are going to be eating a lot of money either way.....time to get a metro card maybe.....

 

[MattTheSkywalker]

yes, it makes perfect sense.

Your trade in estimate might be a little high - dealers make a profit on used cars by low-balling the trades and either re-selling the car or selling it at auction. So it is in their interest to low-ball you.

If the blue book is 7k they will try to get you down some. Be a bitch on negotiations. I just bought two cars and walked out of a dealership over $500 on one of them. They called me back. Dealers - especially on used cars - are looking to play games with you. Play them back. If you;re a bitch, you'll get a deal.


You said you have no debt....the car you want to trade is paid off? cool.

 

[flexygrl]

yes, it makes perfect sense.

Your trade in estimate might be a little high - dealers make a profit on used cars by low-balling the trades and either re-selling the car or selling it at auction. So it is in their interest to low-ball you.

If the blue book is 7k they will try to get you down some. Be a bitch on negotiations. I just bought two cars and walked out of a dealership over $500 on one of them. They called me back. Dealers - especially on used cars - are looking to play games with you. Play them back. If you;re a bitch, you'll get a deal.


You said you have no debt....the car you want to trade is paid off? cool.

Hi Matt,

Thanks...yes, my car is completely paid off. So this is a big deal for me. I'm gonna miss driving it around. It's so fast...but it's not financially smart for me to keep it. Since I've had it I had to replace the rim $500 and I had to buy tires at $200 a pop. Everything on that car is expensive. So, this doesn't sound stupid to you? I hate to admit it but sometimes I'm very ignorant when it comes to money. I don't want to do anything dumb.

Now, if you had a choice to invest the money or to pay for the car upfront in cash, what would you do?

 

[-SD-]

Hi Matt,

Thanks...yes, my car is completely paid off. So this is a big deal for me. I'm gonna miss driving it around. It's so fast...but it's not financially smart for me to keep it. Since I've had it I had to replace the rim $500 and I had to buy tires at $200 a pop. Everything on that car is expensive. So, this doesn't sound stupid to you? I hate to admit it but sometimes I'm very ignorant when it comes to money. I don't want to do anything dumb.

Now, if you had a choice to invest the money or to pay for the car upfront in cash, what would you do?

matt could invest it, but you should pay for the car upfront. lol

 

[MattTheSkywalker]

Hi Matt,

Thanks...yes, my car is completely paid off. So this is a big deal for me. I'm gonna miss driving it around. It's so fast...but it's not financially smart for me to keep it. Since I've had it I had to replace the rim $500 and I had to buy tires at $200 a pop. Everything on that car is expensive. So, this doesn't sound stupid to you? I hate to admit it but sometimes I'm very ignorant when it comes to money. I don't want to do anything dumb.

Now, if you had a choice to invest the money or to pay for the car upfront in cash, what would you do?

You're being smart - you'll still want a cool car in 10 years when things are better.

The most important thing I can tell you is to fight like cats and dogs at the dealer for trade in value and price.

Here is the basics on spend / invest:

What will happen to the money longer term? if you pay the cash for the car, it will decrease in value, and you won't get your cash back.

If you invest it, it increases in value, you hope.

Car payment interest, unlike mortgages, is not tax deductible.

What you should do, is get the absolute best interest rate you can on the car, and finance as mcuh as apossible. If your credit does not qualify you for the best rates, dealers will often finance you at the best available rate if you put more money down. (The risk decreases).

I would use the opportunity to make a bigger downpayment as a bargaining chip over financing AFTER you have agreed on a price.

be an asshole to these people. You are about to spend a lot of your money. Get the deal you want.

I come home to LI for Christmas. Maybe you can show me the new ride. Good luck!

 

[Razorguns]

Re: need financial advice

Hey All,

Hoping someone with expertise can help me...

I have an 02 eclipse GT. This thing is a gas guzzler. I just figured out how much I pay for in gas a month...$250. I commute over 100 miles a day. I was thinking of trading in my car for a more economical Toyota Echo. Yes, I know how ugly this car is, but I'm throwing so much money away a month it's sickening. For a trade in, according to Kelly Blue Book I should get around $7K...I'm hoping to pay for the rest in cash. So, does this make sense? BTW, I have absolutely no debt right now, except for my student loans. Please advise. Thanks in advance.

The steps are easy. The process can either be quick or thorough -- depending on how you handle these things:

1) Figure out what you want. REALLY figure out what you want (make, color, mileage, used, new, etc.). Don't walk in a dealership unsure about what you want, cuz it can be used against you. Even so far as to you winding up purchasing another more expensive vehicle cuz the salesperson was that persuasive.

2) Find out how much _good_ (ie: not gullible) people are buying that car. On ebay. On auto trader. On websites. etc. Pick a number in your head of what YOU are willing to pay MAXIMUM. Keep that number secret.

3) Walk in and be FIRM that you want to buy car X. You have a trade Y. NOTHING gets a salesperson more salivating than a customer he KNOWS is gonna buy. If he loses him/her -- that _guaranteed_ buyer will buy it somehwere else. With that in mind, you have leverage. They _will_ kiss your butt and work with you. If the boss sees a _determined_ buyer walk out that door -- that salesprson will get read the riot act. Make sure everyone in the dealership knows you are a _buyer_ and a _buyerNOW_.

4) Make your lowball offer. It works for them. It should work with you.

5) Keep at it. Threaten to walk out the door if it drags on. Physically get up if you have to. If the number is above that secret number. Forget it and move on. If it's below or equal -- it's your decision whether to accept or not.

Either way -- you should be able to walk out of there with a deal you were either expecting or better.

But make sure BEFOREHAND that this is what you want. Nothing can be more devastating than having second thoughts about that car during the negotiation process. It completely takes your mind off the issue at hand -- the negotiation.

I can't stress that enough.

 

[flexygrl]

Re: need financial advice

The steps are easy. The process can either be quick or thorough -- depending on how you handle these things:

1) Figure out what you want. REALLY figure out what you want (make, color, mileage, used, new, etc.). Don't walk in a dealership unsure about what you want, cuz it can be used against you. Even so far as to you winding up purchasing another more expensive vehicle cuz the salesperson was that persuasive.

2) Find out how much _good_ (ie: not gullible) people are buying that car. On ebay. On auto trader. On websites. etc. Pick a number in your head of what YOU are willing to pay MAXIMUM. Keep that number secret.

3) Walk in and be FIRM that you want to buy car X. You have a trade Y. NOTHING gets a salesperson more salivating than a customer he KNOWS is gonna buy. If he loses him/her -- that _guaranteed_ buyer will buy it somehwere else. With that in mind, you have leverage. They _will_ kiss your butt and work with you. If the boss sees a _determined_ buyer walk out that door -- that salesprson will get read the riot act. Make sure everyone in the dealership knows you are a _buyer_ and a _buyerNOW_.

4) Make your lowball offer. It works for them. It should work with you.

5) Keep at it. Threaten to walk out the door if it drags on. Physically get up if you have to. If the number is above that secret number. Forget it and move on. If it's below or equal -- it's your decision whether to accept or not.

Either way -- you should be able to walk out of there with a deal you were either expecting or better.

But make sure BEFOREHAND that this is what you want. Nothing can be more devastating than having second thoughts about that car during the negotiation process. It completely takes your mind off the issue at hand -- the negotiation.

I can't stress that enough.

Matt and Razor,
Thanks so much for the very well though out responses.

Matt,

I would love to take you around. Are you sure you wanna be seen in a ghetto car like an Echo? My current car is SOOO much cooler!!

Honestly, please look me up when you are back in town.

Thanks again!

 

[flexygrl]

Re: need financial advice

Matt and Razor,
Thanks so much for the very well though out responses.

Matt,

I would love to take you around. Are you sure you wanna be seen in a ghetto car like an Echo? My current car is SOOO much cooler!!

Honestly, please look me up when you are back in town.

Thanks again!

I went to the dealer last night. They are phasing out the Echo and all they have are those ugly Scions. The sales woman wouldn't budge, even when I got up to leave. They also appraised my car for $5500. That's sick!!! So, now I really don't know what to do. I guess I'm gonna start taking the train soon. I really don't want to, but this commute is killing my wallet and my car....

Thanks again to all for the advice!

 

[*MissFit*]

Saturns rule 500k per 38 litres