Quote:
Originally Posted by terry_b
Pretty much what he said, although be warned: you will most likely NOT get book value unless you traded for a NEW 2014 leftover of a model that they really wanted to move. Basically you would have to find a car they really don't want on the lot anymore and do them a favor by taking it. Likely you would be unhappy with that car and you wouldn't save money.
I started out negative on my first Camaro, but it reached a certain point where I went positive and the car held it's value.
Here's some (simple) math:
$23,000 (your current loan)
+$20,000 (Cruze @ $19k + fees)
$43,000
- $16,000 (Camaro trade-in value)
$27,000 (Total price W/O interest)
So unless you can really improve your interest rate, it's definitely not worth it. If your interest is high and your credit has improved significantly since you first applied you could look at refinancing for lower, but I wouldn't go the trade route. You's pay more for a stripped down version of a lesser car and the long term value of the Cruze is not holding as well as the Camaro - that is unless you could find one for a steal of a price that would offset the negative equity, but it would have to be one huge discount.
|
GREAT advise!!
When i was young and dumb (just not young anymore..) i did this a couple times (carry over 2-3k to a new loan) its a cycle that is hard to beat unless you pay off your loan.
OP did you buy the camaro new or used? keep in mind that with any loan your payments for the first year or so (depending on rate) upwards to 50% can be interest only. you may be paying 350/mo, but your principal is only getting 150-200. you pay it on time, but you just never see the amount go lower can be frustrating.