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Want a new Av but "upside down" in my car...

D

doublenaughtspy

New Member
Joined
Mar 23, 2004
Messages
7
Location
Southeastern PA
My local dealer has 5 Z71's on the lot and 3 of them are exactly what I want. His quoted price to me is right in line with where it should be and he has all the right factory cashback figures.

My problem is that I'm "upside down" in my trade in (that is - I owe a lot more - $8K - than I've been offered for the car by 3 different dealers and what all the websites tell me I should be selling it for).

I want the Av - and I need the Av for work but can't stand the thought of getting crushed to that extent. The longer I stay with my trade (luxury passenger car), the worse the situation will get with my heavy use.

Any suggestions? Should I be looking to minimize the damage with a lease on the Av? :E:
 
If you rack up alot of miles each year then do not, I repeat do not lease. Sell your car or buy a used Av. I bought one used and got it for $11k less than they were asking.
 
Yoshi5674 said:
If you rack up alot of miles each year then do not, I repeat do not lease. Sell your car or buy a used Av. I bought one used and got it for $11k less than they were asking.
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I agree. (y)Especially with the way gas prices are right not you should be able to get a pretty good deal on a used one. :2:
 
I would believe that a good salesman would be crafty enough to present something that will work for you. Otherwise, find a private party and adjust for the loss against the blue-book private-party value. Then see if they can refi.
I'd make sure your full liability is released from the loan before anyone "takes over the payments", if that's the case.

Good luck!
 
I agree with buying a used Av as posted by a few others, or wait until you are no longer upside down in your current vehicle.
 
Thanks for your input.

Regarding the lease situation...

It's not the overall miles - I do about 16K / year. It's the type of miles - I recently started my own construction consulting business and am in the field quite a bit. The luxury car is really getting beat up going to jobsites. Should be worth about $35K - best quote is $27K so far. :E:
 
Resale of BMW and MB has slipped alot lately. I have a friend trying to get rid of a 2 year old s500.. NO takers...
 
doublenaughtspy said:
enkeiavalanche said:
What kind of car is it???What year and how many miles?
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2000 BMW 740 IL - 70K miles - bought certified used in late 2002.
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The new 745's are not helping with this. Everyone has traded in their old BMW's for the new series. No one want the old model. This is true with any vehicle.
 
Yoshi5674 said:
If you rack up alot of miles each year then do not, I repeat do not lease. Sell your car or buy a used Av. I bought one used and got it for $11k less than they were asking.
Click to expand...

That is what I did. It took me quite a while to sell my other vehicle but I would not take less than I owed. Bought an Av with 16000 on it and haven't regretted it (y)
 
That's probably what I am up against right now. The 740 is a great car - NOTHING that I've ever driven is quicker from 40 to 80 mph. I would love to keep it - just can't afford to do both.

Maybe I'll forget the Av for now and go buy a beater truck or suv for work only. It's a shame - I really like the Av at the dealer...

:C:
 
Double-O,

I've been upside down before, and there's no fast way to get out of it. The best thing to do is what you just posted, keep the Bimmer and get a beater truck for your business. Get the Av in a couple years.

The most recent upside-down transaction for us was in April. We had a 2004 Nissan Quest that my wife simply didn't like. Nothing wrong with it, just "too big" and "too thirsty"--especially considering we have an Av too. We traded it in towards a 2004 Pontiac Vibe. We were also about $8k upside-down, because the previous car was also upside down---viscious cycle that I just put an end to...

Instead of being upside down on the Vibe, we paid out-of-pocket + rebate to get back to zero. It made sense for us, since we had the cash and my GM discount + rebate made this deal possible. No other make of car would have made this possible. We've learned a lot about finances in the past few years, and won't make the same mistakes again.

I know it's tough, especially wanting the Av, but don't do it now. Keep the Bimmer.

Craig
 
You can always roll the upside down into the new truck loan....but I would get Gap insurance.....
 
Yeah being I sell cars DON'T LEASE if you put alot of miles on a car. Also when looking at a new AV take the rebate this will help you out alittle bit you may have to take a higher interest rate but you will not have to come up with as much money.
 
I'd be wary of "crafty" salesmen that can get you in a car when you're that much upsidedown.

Selling your existing care as a private party is always the way to get the most out of your car.

Definitely Look for a used Av; may not be as pretty or smell as nice, but it will still get the job done. Dealers usually have more wiggle room on the price (since they got it at a lowball price, too). And you never know what you might find. Mine was only a year old with a several tons of miles on it (43K), but it's a fully loaded '02 and was GM Certified Used. It has some minor glitches. I paid around $23,500, including an extended warranty, which is $20K less than MSRP and $8K less than even the best offer on a new one at the time.

I don't recommend this at all, but as a last resort, and if you plan on keeping the AV for at least eight years, you could use a four year lease to absorb your deficit. You will wind up with payments that are fantastically high (probably nearly the same as what it would cost to make payments on both cars at the same time). Get the lease type that allows you to buy for the residual value at the end; then you could finance for four years at more reasonable payments and avoid the mileage penalty altogether.
 
A good used Av will do just fine. There are lots around right now.

Remember the 02's had everything like lights under the Hood anf two in the bed..
 
enkeiavalanche said:
A good used Av will do just fine. There are lots around right now.

Remember the 02's had everything like lights under the Hood anf two in the bed..
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03's have the two lights in the bed also but they don't have the light under the hood! :E: :E:

Glenn your truck looks sweet with the new Enkei's! (y)
 
I guess I have a little different view than the previous posts.

Anyway you look at it, you owe $8000 more on a vehicle than it's worth. I was $4000 upside down on my Silverado when I traded it
in on my AV. My logic at the time, I waited until I got a great deal,
That being 0% interest for 5 years, GM employee discount for non-GM employees ( a lot of local dealers will do this ), Non-GM in the driveway certificate for the wife's Mittsubishi, and GM card discounts.

My total payments will still be under what the original sticker price was on the AV.

So not knowing what interest rate you are currently paying and for how many years, it's hard to judge what to do, but for me... I'd rather pay my $4000 upside down equity off at 0% interest and drive a new vehicle than pay it off at 5.9% on a two year old vehicle.

Just my $.02 Let's us know what you decide! :)
 
As was suggested, but on a different twist, you could always roll the upside down vehicle :)

I don't know what the other AV your looking at will run you, if they are used or not, but if it helps, Sterling Chevrolet here in Sterling Virginia is doing about $12k below sticker.

I could trade my AV in now, ( I'm upside down $8k at the moment ), take that hit, add DVD player, and pay what I paid for my car now ( yeah, I didn't get the best deal I could have, I'm young, I'm impatient )
 
I would think you could get a GM in the driveway certificate from a member here plus the rebate and that could get you out of your situation. :B:
 
ygmn said:
You can always roll the upside down into the new truck loan....but I would get Gap insurance.....
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rolling the negative equity into the vehicle will just get you in the same situation when/ if you try to get rid of it. my wife did it that very thing two vehicles ago... back in '99 i believe. she is still paying for it with the new '04. i told her to start sending in an extra $50 - $100 each month help. she has not done it yet. oh well.
 
omniplex said:
I could trade my AV in now, ( I'm upside down $8k at the moment ), take that hit, add DVD player, and pay what I paid for my car now ( yeah, I didn't get the best deal I could have, I'm young, I'm impatient )
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You could, and while that sounds OK on the surface you should look at how much you've paid towards your current Av and add in what you'll pay for the new one.

If your current payments are $500 and have had it for 18 months, you've paid $9000 so far. Even if you'd break even, you paid $9000 just to USE your Av for 18 months. If you go upside down $8000, then you've essentially paid $16000 for 18 months of use.

Don't get me wrong, we've been upside down before, and sometimes the benefits of getting out of a vehicle outway the costs associated. It made sense (on some levels) to get out of the Nissan Quest. It wasn't the best decision fanancially, but it made sense.

Back to my point... If your only goal is to trade in a 2003 for a 2004 (or 2005) is to get a DVD player, why not pay $1000 for a DVD system instead of $16000? Yeah, your payments would stay the same, but your loan term starts over and you are back to square one.

Anyone who is upside down on their car needs to realize that will change. As your loan approaches payoff, more of your payment is applied to principle and less to interest. The last 2-3 years (hopefully) of a loan should be right-side up.

I guess my point is to look at the big picture. Don't look at "keeping the payments the same" because you don't really want that. Sure, your budget may accept that, but you'd be better off (usually) paying off your current car, and trading it in with equity in a few years instead of being upside down.

I seem to be pi$$ing people off lately, as my smites are increasing. This post will probably lead to more.
 
Hey guys - Thanks for all your suggestions. Here is where I stand (close):
            
2000 BMW 740 IL            

Current Loan Payoff:   -33780   
Best Trade In Offer:       26300   
Equity:          -7480   

Payment:          870   per month
Interest Rate:       3.90%   
Payments Remaining:    30   


2004 Avalanche SM1            
            
Sticker:      42760   (loaded - everything but DVD)
            
Best Price Quoted:   33950   Includes Rebates and Discounts
Taxes, Tags, Etc.    2337   
      36287   
Add Neg. Equity:    7480   
      43767   
Down Payment:    -4000   
Amount Financed:   39767   

4 year payment:   $932.11   5.90%
5 year payment:   $785.56   6.90%

The longer I keep beating up the 740 running to jobsites, the less it will be worth and I don't think I'll ever equal out the payoff and the value.

I'm real tempted right now to bite the bullet and do the 5 year deal on the Avalanche. My accountant says that the Av is a better tax write off as a vehicle used for construction consulting and can depreciate it as an asset over the loan period based upon mileage.

Even with nothing down, the 5 year payment is still a few dollars less than what I'm paying now.
 
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