Dealer Trade-in and Financing Question - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

LEX2CAMARO · 04-15-2009, 12:02 PM

Well, it seems that i may have a big wrench thrown at my Camaro purchase plans. I'll live but I did have some questions for my clarification:

I have 2007 Camry SE that i was going to "trade-in" to get the deal through for the Camaro but there are obstacles that have popped up and may release the air in my excitement bubble.

-The Camry PAYOFF is $20K and the according to NADA, KBB and Edmunds my car trade in value is about $15K (avg) The low is at $13.5K. That's about $5K that I need to bring to the table OR needs to be adjusted in the new loan? Please clarify!

-I am working with 2 dealers here in SOCAL. One clearly stated that he will go over $3K on MSRP. Other has not gotten back to me yet and both have told me to call end of week.

-My "self-induced" monthly limit on car payment is $500. I am willing to drop $3K down and I may get an interest of 4.40 to 5.10 through my bank (depends on terms) But the Loan Calculators are showing me monthly payments between $550-$650. Kinda over my set limit. Makes sense since the price may go upto $36K ($31K for car + approx $5K for loan to make up for trade in..makes sense?)

Should i just sit in the corner and wait until I am financially ready to buy the car or is there some hope in this situation.

I'll live and still stay excited about the car and will eventually get it one way or the other in the future but was kinda curious

Thanks.

lakers171 · 04-15-2009, 01:19 PM

where exactly in southern cali are you from? maybe i can help

Sierra · 04-15-2009, 01:31 PM

But trade ins dont give you exact trade in value. I beleive. Its usually lower isnt?

Iwantone2 · 04-15-2009, 02:17 PM

Lex2camaro,

Which dealerships have you talked to? $3K over MSRP is rediculous!!! DeLillo Chevrolet recently dropped their prices to MSRP (used to be $2500 over MSRP) and Steve Majick at Harbor Chevrolet had some allocation left AND was selling at MSRP (of couse, the information about allocation was from a few weeks ago and he told me that several Camaro5 members had already contacted him).

We all hope everything works out for you!!!

nol300 · 04-15-2009, 02:20 PM

But you still have not included in your payments the Tax and Registration cost that is going to be another couple thousand minimum.

Mr_Draco · 04-15-2009, 02:41 PM

Quote:

Originally Posted by LEX2CAMARO

Well, it seems that i may have a big wrench thrown at my Camaro purchase plans. I'll live but I did have some questions for my clarification:

I have 2007 Camry SE that i was going to "trade-in" to get the deal through for the Camaro but there are obstacles that have popped up and may release the air in my excitement bubble.

-The Camry PAYOFF is $20K and the according to NADA, KBB and Edmunds my car trade in value is about $15K (avg) The low is at $13.5K. That's about $5K that I need to bring to the table OR needs to be adjusted in the new loan? Please clarify!

-I am working with 2 dealers here in SOCAL. One clearly stated that he will go over $3K on MSRP. Other has not gotten back to me yet and both have told me to call end of week.

-My "self-induced" monthly limit on car payment is $500. I am willing to drop $3K down and I may get an interest of 4.40 to 5.10 through my bank (depends on terms) But the Loan Calculators are showing me monthly payments between $550-$650. Kinda over my set limit. Makes sense since the price may go upto $36K ($31K for car + approx $5K for loan to make up for trade in..makes sense?)

Should i just sit in the corner and wait until I am financially ready to buy the car or is there some hope in this situation.

I'll live and still stay excited about the car and will eventually get it one way or the other in the future but was kinda curious

Thanks.

You're pretty much screwed. $3k isn't enough for a down payment, try around $8k. Reason is once you sign the papers you will be upside down which is a bad thing as you now realize with your Camry.

Now for the Camry, rule of thumb when dealing with trade-ins, the dealer will only offer you around 70% of the cars value. With the used car market in the shape it is in, expect this to be lower, around 60-65%. So expect the dealer to offer you around $10k for your Camry at best so you will have the other $10k taken care of somewhere, either your down payment or loan (I highly advise do not add this to your loan. It is just more interest you will be paying).

Unfortunately in your predicament you simply can not afford this car if $3k is all you can put down.

LEX2CAMARO · 04-15-2009, 11:49 PM

Quote:

Originally Posted by lakers171

where exactly in southern cali are you from? maybe i can help

I am from the Inland Empire Area.

Quote:

Originally Posted by Mr_Draco

You're pretty much screwed. $3k isn't enough for a down payment, try around $8k. Reason is once you sign the papers you will be upside down which is a bad thing as you now realize with your Camry.

Now for the Camry, rule of thumb when dealing with trade-ins, the dealer will only offer you around 70% of the cars value. With the used car market in the shape it is in, expect this to be lower, around 60-65%. So expect the dealer to offer you around $10k for your Camry at best so you will have the other $10k taken care of somewhere, either your down payment or loan (I highly advise do not add this to your loan. It is just more interest you will be paying).

Unfortunately in your predicament you simply can not afford this car if $3k is all you can put down.

Makes sense. I can go higher on the payment and even pay more down but i think I may just end up sitting on the bench and join the game when I'm really ready.. the car is not going anywhere...and I may get a better price...

Douge · 04-16-2009, 12:26 AM

Camry's are great cars and have strong resale. I am not sure if you get a sales tax credit as we do in AZ so take that into account but your best bet would be to sell the Camry and pay off any deficiency and go into the Camaro with a clean slate. I don't know which model/pkg you are buying but is 31K OTD with TTL?

Vash · 04-16-2009, 01:43 AM

Try to sell your car yourself. Do a mega detail on it and go fishing for most. Otherwise like said your either gonna eat the loss or keep what your driving.

Your not alone everyone has lost book value. My vette dropped from 10 to 5k book in one year. Everyone got hit hard in NADA.

THE EVIL TW1N · 04-16-2009, 01:53 AM

Quote:

Originally Posted by Mr_Draco

You're pretty much screwed. $3k isn't enough for a down payment, try around $8k. Reason is once you sign the papers you will be upside down which is a bad thing as you now realize with your Camry.

Now for the Camry, rule of thumb when dealing with trade-ins, the dealer will only offer you around 70% of the cars value. With the used car market in the shape it is in, expect this to be lower, around 60-65%. So expect the dealer to offer you around $10k for your Camry at best so you will have the other $10k taken care of somewhere, either your down payment or loan (I highly advise do not add this to your loan. It is just more interest you will be paying).

Unfortunately in your predicament you simply can not afford this car if $3k is all you can put down.

+1
the dealership will probably give you $10k-13k for your Camry, if it is clean.

alex33x · 04-16-2009, 10:22 AM

Thats why usually its best to put a 30% down on a car you want to buy, that way you dont lose money tot he bank if one day you want to trade it in.

I remember when I first got my car sticker price was at 28k, I put $8,500 down on it uncluding my trade in which put me in the 5k range postive and $3,500 cash, Right now. Now if I sell my car and consider what I have to put down I could put a 20k down on the camaro, if I sell my car privately plus the parts I ahve in it I could make 25-27k

But point is down payment is very important so you dont end up losing value faster than you are making payments.

Mr_Draco · 04-16-2009, 10:42 AM

Quote:

Originally Posted by LEX2CAMARO

Makes sense. I can go higher on the payment and even pay more down but i think I may just end up sitting on the bench and join the game when I'm really ready.. the car is not going anywhere...and I may get a better price...

If you don't think you can afford it, then you can't simple as that. There is no shame in waiting till you can afford the car as long as you're comfortable with the payments. You can always buy a used car that someone "thought" they could afford or buy at the end of 2010 when dealers will be offering huge discounts on '10 MY cars.

Vash · 04-16-2009, 10:54 AM

Well I will buy a used one. I saved $29,000 off sticker on my vette and $21,300 off sticker on my S10 Blazer.

Well not really but those where original msrp.

But i'll be buying a 2-3 year old Camaro with around 30-60k miles so should save a nice chunk of change. That being said nothing is as nice as having a new one.

DevilKnightFalcon · 04-16-2009, 12:50 PM

$3k down is definitely not enough, you will end up hurting really bad. My build is $35k including everything and I am putting in the ballpark of $15k down. Keep in mind that even if you get a longer term loan (60+ months) you are going to end up paying a fortune in interest. I highly recommend waiting it out until you are financially ready.

04-15-2009, 12:02 PM	#1
LEX2CAMARO Drives: 2010 2LT/RS-YELLOW OR BLACK? Join Date: Apr 2009 Location: Southern California Posts: 16	Dealer Trade-in and Financing Question Well, it seems that i may have a big wrench thrown at my Camaro purchase plans. I'll live but I did have some questions for my clarification: I have 2007 Camry SE that i was going to "trade-in" to get the deal through for the Camaro but there are obstacles that have popped up and may release the air in my excitement bubble. -The Camry PAYOFF is $20K and the according to NADA, KBB and Edmunds my car trade in value is about $15K (avg) The low is at $13.5K. That's about $5K that I need to bring to the table OR needs to be adjusted in the new loan? Please clarify! -I am working with 2 dealers here in SOCAL. One clearly stated that he will go over $3K on MSRP. Other has not gotten back to me yet and both have told me to call end of week. -My "self-induced" monthly limit on car payment is $500. I am willing to drop $3K down and I may get an interest of 4.40 to 5.10 through my bank (depends on terms) But the Loan Calculators are showing me monthly payments between $550-$650. Kinda over my set limit. Makes sense since the price may go upto $36K ($31K for car + approx $5K for loan to make up for trade in..makes sense?) Should i just sit in the corner and wait until I am financially ready to buy the car or is there some hope in this situation. I'll live and still stay excited about the car and will eventually get it one way or the other in the future but was kinda curious Thanks.

04-15-2009, 01:19 PM	#2
lakers171 SoCal MAYHEM Drives: 2010 2LT/RS IBM Join Date: Feb 2009 Location: Hawthorne, Ca Posts: 2,831	where exactly in southern cali are you from? maybe i can help __________________

04-15-2009, 01:31 PM	#3
Sierra Drives: 2004 GMC Sierra SLT 4x4 Join Date: Feb 2008 Location: Southern NJ Posts: 1,045	But trade ins dont give you exact trade in value. I beleive. Its usually lower isnt? __________________ On the 8th day God created the Camaro and all is good.

04-15-2009, 02:17 PM	#4
Iwantone2 Voice Of The Voiceless Drives: CGM 1SS RS Join Date: Feb 2009 Location: OC Cali Posts: 9,610	Lex2camaro, Which dealerships have you talked to? $3K over MSRP is rediculous!!! DeLillo Chevrolet recently dropped their prices to MSRP (used to be $2500 over MSRP) and Steve Majick at Harbor Chevrolet had some allocation left AND was selling at MSRP (of couse, the information about allocation was from a few weeks ago and he told me that several Camaro5 members had already contacted him). We all hope everything works out for you!!! __________________

04-16-2009, 12:26 AM	#8
Douge Eurotrash Connossieur Drives: 1985 Mercedes 500SEL Join Date: Mar 2009 Location: Chandler, AZ Posts: 188	Camry's are great cars and have strong resale. I am not sure if you get a sales tax credit as we do in AZ so take that into account but your best bet would be to sell the Camry and pay off any deficiency and go into the Camaro with a clean slate. I don't know which model/pkg you are buying but is 31K OTD with TTL? __________________ 2011 Camaro Convertible 2SS, Imperial Blue/Gray Silver Rally Stripes

04-15-2009, 02:20 PM	#5
nol300 Drives: 92 300ZX TT 2007 Silverado Join Date: Jan 2009 Location: Denver, CO Posts: 328	But you still have not included in your payments the Tax and Registration cost that is going to be another couple thousand minimum.

04-16-2009, 01:43 AM	#9
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,100	Try to sell your car yourself. Do a mega detail on it and go fishing for most. Otherwise like said your either gonna eat the loss or keep what your driving. Your not alone everyone has lost book value. My vette dropped from 10 to 5k book in one year. Everyone got hit hard in NADA.

04-16-2009, 10:22 AM	#11
alex33x Drives: 2013 Camaro ZL1 Join Date: Apr 2009 Location: El Paso, Tx Posts: 687	Thats why usually its best to put a 30% down on a car you want to buy, that way you dont lose money tot he bank if one day you want to trade it in. I remember when I first got my car sticker price was at 28k, I put $8,500 down on it uncluding my trade in which put me in the 5k range postive and $3,500 cash, Right now. Now if I sell my car and consider what I have to put down I could put a 20k down on the camaro, if I sell my car privately plus the parts I ahve in it I could make 25-27k But point is down payment is very important so you dont end up losing value faster than you are making payments. __________________ Devliered July 20, 2012

04-16-2009, 10:54 AM	#13
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,100	Well I will buy a used one. I saved $29,000 off sticker on my vette and $21,300 off sticker on my S10 Blazer. Well not really but those where original msrp. But i'll be buying a 2-3 year old Camaro with around 30-60k miles so should save a nice chunk of change. That being said nothing is as nice as having a new one.

04-16-2009, 12:50 PM	#14
DevilKnightFalcon Drives: 2010 Camaro 2LT/RS Join Date: Feb 2009 Location: Phoenix, AZ Posts: 1,406	$3k down is definitely not enough, you will end up hurting really bad. My build is $35k including everything and I am putting in the ballpark of $15k down. Keep in mind that even if you get a longer term loan (60+ months) you are going to end up paying a fortune in interest. I highly recommend waiting it out until you are financially ready.