Thinking of trading up to a 2015 1LE... some advice needed

[justjoshin]

I agree with palmer completely. Also what is your payoff on your current car?

[Scott@Bjorn3D]

Just upgrade you car as has been said. That is what I did as the 1LE was not out when I got my car. My car handles great.

[Josh.Duncan]

I'm a car salesman in Oklahoma while I'm waiting to go off to optometry school next fall and here is my advice...wait until the 2016 comes out. I would personally hate to get a 2015 and then GM change the body style up and add a few neat features in the 2016. While waiting until the 2016 you'll build up more equity in your current car.

[slakjak1215]

I wouldn't get the 2016, IMO, first year car probs.

[xinfamousxi]

Just because I'm intrigued by everyone math here let me see if I got this right!

Lets say I want a SS for $30,000

I have a Camaro valued on KBB at $26,000

I have $20,000 on the loan, so my equity is $6000

$30,000-$6000 = $24,000 for new SS

Correct?

[matthew9440]

Realistically, Probably looking at them hitting you with a 24K trade allowance. They might come up, but they will start low. Probably not worth trading right now. Wait for 16's.

[matthew9440]

Originally Posted by xinfamousxi

Just because I'm intrigued by everyone math here let me see if I got this right!

Lets say I want a SS for $30,000

I have a Camaro valued on KBB at $26,000

I have $20,000 on the loan, so my equity is $6000

$30,000-$6000 = $24,000 for new SS

Correct?

Yes sir! Make sure you figure that the 26,000 trade is still a tax credit and in PA that's still $1,560 you will be saving on tax.

[SlingShot]

Originally Posted by PalmerGA

Mmmmmm, I don't quite follow your over-simplified logic. I have been fortunate enough to position myself financially to where all deals are cash deals; whether it's cars, home improvements, vacations, etc. Of course this requires some discipline on my part and the realization that I cannot have everything I want, when I want it. I buy what I can afford, but I always pay cash (unless there is a benefit to me for making a short-term financing deal). For example, when I bought my Ram pickup the dealer knocked an extra $1,500 off the final price for me to finance the balance at 3.7%, so I did. All I had to do was make 3 payments and then I paid it all off. Those 3 months cost me less than $100 in interest, so I save $1,400 by doing it.

If you have to finance the 1LE... ouch! That's where many buyers get burned, though it isn't the dealers fault. It's the buyer's fault for making a deal they really can't afford. The dealer will work with you (if your credit is good) to put your ass in the 1LE. They aren't concerned with how much it sets you back. If you want it, they'll do everything they can to get you in it.

This usually ends up with the buyer financing the balance owed on their trade-in along with the cost of the new car. Let's say they allow you $29K for your trade in, but you still owe $15K on it. Simply put, you would finance $40K + $15K - $14K (trade in). Now you are paying (financing) $41K for the 1LE. No big deal, you say... That's a good price for a 1LE!

The problem with this is two-fold. First, they probably stretch your loan out to six or seven years to get you a payment you can afford. That's a lot of interest over the years, on top of the $41K. Second, as soon as you drive off the lot (take delivery) of your beautiful new 1LE - it depreciates in value by probably $8K-$10K and it gets worse with every mile you drive.

This phenomenon creates a position of your being "upside down" on your loan. You sign the papers and you instantly own a $31K car that you owe $41K. You could not sell it or trade it an hour later for what you owe.

Sorry for the long diatribe, but so many people get sucked into getting upside down on a new car. I've been there (years ago) and it's no fun.

Also, benji276289, when I say "you" this and "you" that... I speaking in general, to anyone who reads this. Not to YOU in particular.

Peace-out.

Your math is flawed ...

[baum]

Originally Posted by xinfamousxi

Just because I'm intrigued by everyone math here let me see if I got this right!

Lets say I want a SS for $30,000

I have a Camaro valued on KBB at $26,000

I have $20,000 on the loan, so my equity is $6000

$30,000-$6000 = $24,000 for new SS

Correct?

this is true to a point. then you add tax if you live in a tax state. depending on the state you live in it can be one diffferently.

also keep in mind that dealers usually use the wholesale price and not kbb. If you can get kbb or nada trade in price you are doing good.

[IOMss11]

To go along the lines of what Palmer GA was saying, If you don't have the cash to pay for it, you can't afford it(age old philosophy).Like palmer I've paid my home and all my cars in cash, work hard and save up, financing or leasing or loans are a waste of money in my opinion.

[SlingShot]

Originally Posted by IOMss11

To go along the lines of what Palmer GA was saying, If you don't have the cash to pay for it, you can't afford it(age old philosophy).Like palmer I've paid my home and all my cars in cash, work hard and save up, financing or leasing or loans are a waste of money in my opinion.

Bunk !!! Doesn't always apply ...

[ST1LE]

Originally Posted by SlingShot

Bunk !!! Doesn't always apply ...

+1

[MRREVINTO7]

just bought a 1LE i got 0% 72 months ..3 months no payments and ..44k window 3500 off 1000 conquest cash 2200 x plan …..good luck and work a deal for a 14 you will get a good deal

[ST1LE]

Originally Posted by MRREVINTO7

just bought a 1LE i got 0% 72 months ..3 months no payments and ..44k window 3500 off 1000 conquest cash 2200 plan …..good luck and work a deal for a 14 you will get a good deal

Good Point!