on3_mike

alright... i have a 06 acura tsx and i cant afford the payments.. i put 5000 down and paying 430 bucks a month for 6 years! i want to trade my car in and get a used car like a used rsx type-s (keeping it in the acura family) so i can lower my payments... whats the pros and cons? and how does the trading process work? can any body help me?!

shrykhar

The RSX is a very different driving experience, and you'll get raped on your trade in.

Not an opinion, just the way it is ...

puiyingbread

if u are in canada....u cannot trade yr leasing car unless someone take over your leasing........

on3_mike

im not leasing... im financing... gettin a beater car was in mind.. like a integra....
also selling my tsx to carmax is an idea and using the check fer a beater car..

A Cake On

That's a tough spot to be in. I say if there is any way you can tough it out to try and kepp it, cause you are going to lose your ass on a trade this soon. At the very least you are going to lose a good chunk of the down that you put into it.

So you are going to be into a new car with less money down, and maybe even adding money by being upside down on this trade.

nj2pa2nc

the only way you will know is go to carmax and find out what they will give you for your car. You will probably be shocked how low it will be.

rb1

Since that totals to $35960, I assume you are in Canada.

With a car so new, your best bet (money wise) is a private party sale. You'll lose roughly 10% (more, over a private party sale) on a trade-in (or sale to CarMax).

That's a pretty big down payment, so I'd think the payments are comparable to slightly less expensive (new) cars. Also, if it's the length of the loan rather than the amount that are really bothering you, you could probably do a 5-year loan on the car for only $100 a month more, but if you actually can't handle the payment you have now, that won't help of course.

curls

Gotta love financial planning before purchasing! Sounds like a textbook case of buyers remorse.

Jokes aside, you will need to move down to a significantly less expensive car in order to see any real savings, now that you already took the depreciation hit on the TSX. A used RSX-S (plus increased insurance premiums) probably won't get you too far ahead, if at all. You might be best off to get a true beater (something under $5K or whatever) in order to save your cash for a new car a few years from now. Draw up a true-to-life budget, see exactly what you can COMFORTABLY afford, then look at what kind of car you can get with that comfortable payment. Look into the loss you'll take on the TSX, and make a decision from there.

For what its worth, I'd also ask yourself this: Can I afford the monthly payment as it is right now, but am I just mad at the 6-year term? If the answer is YES, then look at pre-paying the loan so its paid off earlier (you will have to check the details on how much you can pay down as per the loan agreement). This will quickly take a lot of the principle off of the loan and might make you feel a bit better, and also get you to outright own the car debt-free, sooner. It's a HUGE advantage with a mortgage, to do this, and can also be a big advantage with any loan to do this.

clee109

trade in value depends on two things: mileage/condition, and how much you still owe on the car.

So these are random numbers just for illustration purpose:

So you bought the car for 31000 and put 5K down, that means at the point of purchase you owed 26000, you pay 430 per month, factor in 6% of that is intrest and not paying down the value of the car so what you are paying down on the car would be:404.20 per month towards the value of the car (6% is average intrest with a decent credit score in the upper 600's)

Since your car is an 06 I'll assume 6 months of ownership, so over the course of 6 months at 404.20 towards the value of the car at purchase you owe: 28425.20.

The delership will give you KBB good condition, so from kbb.com if your car has 10K miles on it and is non-navi that puts the value at: 22855.00 here in Portland Oregon.

That means you are burried 6000, which means you owe 6K more than the car is worth. So to get to 0 down on a new/used car you need to put 6K down.

So you want an RSX, say that car after negotiation gets down to 16,000, after you put down 6000 to cover how much you still owe on your TSX you are now financing 16000, that'd make your payments about: 320 per month.

Here is how you factor that payment (all sales people do it, I did it when I sold honda/acura and I promise it's the first number they'll hit you with =P)

Take the first two numbers of the MSRP of the new car (16 in this case)
multiply by 2 (2x16=32)
add a 0 (320 per month)

Now if you're savvy you'll negotiate at least 50 off of that!

Hope this helps you and clears up your questions.

TSX420J

I put down 2000 and pay 475 a month for 6 years.

TSX420J

If it really hurts your pocket get rid of it. If you do decide to get rid of it
you will go upside down.

jlukja

yup

I saw on MSN Auto where the TSX is one of the top 10 cars in holding its value. Any chance you can stick it out?

mrgold35

Sometimes you have to look at your complete lifestyle before making a decision. Are there other areas you can save money such as:
- down grading or eliminating your cable/direct TV
- Selling items around the house to pay off credit card bills
- eating out less, cooking at home more
- drive less, combine trips, carpool
- rent a cheaper place when the lease is up
- getting a room-mate or have the girlfriend move in
- getting extra hours at work, 2nd job or changing jobs
- cheaper cell phone plan
- cut down on movies, beer, junk food, broke-ass friends, cigarettes, etc..
- drop the gym membership
- change your auto insurance and/or select a $500 or $1000 deductible

I’m willing to bet you make more than $500 per month at 19 years old. You basically have the best bang for the buck car for $430 bucks a month. You will be lucky to find anything close to this car for under $330. If you are just talking about $100 buck a month from affording the car, then you need to check out the list above.

You have to minimize you spending and maximize your savings in all areas, not just in your car payment. If you don’t, you will always one paycheck from living with mom/dad.

drunkenbuda

Good list..
You miss something, drop the girlfriend......they cost money.

visuelz

When I was 19, I didn't make more than 500 a month. That number is pretty high. We go to school full time and don't have much. I've been making a lot of money now but it's not a good thing. I am currently taking 20 credits and working 2 jobs for 20 hours a week. That's tough...

Mokos23

Get a Honda Accord then, cheaper payments and you won't lose the space if you were going to get rid of the TSX.

TSX420J

Yup. Avoid selling at all cost. You will put yourself in a bigger hole . You need to try and find another way to stay with with it. I once was two months without work and managed to keep my car (one of the hardest times in my life). But sometimes you have to sacrifice other things.

TSX420J

Girlfriends are at least 4-500 a month..

RhythmicFORCE

ok since this is in a way related, i got my tsx last may 07 for grad, new with the full package with navi and all, but since ive seen the tl, i really want that. so what would be the trade in process in my case?

MarbleGT

20 yrs old + RSX = Insurance more than car payment.

f that.

If you can't afford it, dont buy it. It sounds like you need something thats cheap all around.

godfather2

^ u just replied to a year old thread. better read the time stamp on the initial post

curls

You're 18 and were given a TSX. You've probably never been told "Never look a gift horse in the mouth".

If you haven't heard it, look it up.

TS_eXpeed

dj Dozhe

So...many...thoughts. I'm going to stifle my initial reactions to that post.

Here's some help:

Trade in scenario: Decide which TL you want, find the dealership offering the lowest price while offering the highest price for your TSX trade in. Go there, trade in your TSX, and pay the difference.

That is a scenario I would only suggest if you have so much money you've run out of things to do with it.

Here's a better suggestion:

Private Sale: Sell your TSX to a private party. You will always get the most money from a private sale. Then find the TL you want for the cheapest price, apply money from sale + the rest of the price, and hand it to the dealer.

Don't forget after both of these to fork over more cash for the TL's tax, title, and registration!