Ok, here's the deal. I want to get rid of my 2001 Eclipse GT 5spd, premium edition, etc. etc...with 90k miles.

I want to trade in for a new civic si...around here they are going for like 18-19k without nav...

I owe 11k on the Eclipse (I got ripped off, i know).

How would I go about trading the eclipse in? How does what I owe on the eclipse get rolled over to the new car? anything else I should know? Thanks.

 

I'm not sure what your car is worth, but let's assume they give you $7K, that's a $4K difference. If you get the civic for $19K, you'll have to pay $23K ($19K + 4K), but you will only be taxed on the difference, which is $12K (19K - 7K) ples dealer fees, etc. So out the door you're looking at $23K + taxes on 12K, plus dealer fees.

 

So basically that's way too much for a civic si....don't you think?

 

You're only paying 19 for the civic in the above example, the 4K is from the negative equity you have in you eclipse..

If you own more on a car then it's worth, it's called negative equity. Some people would say that you're "upside down" in your current car (same thing as negative equity, but it sounds cooler)...

My sister had a 2001 (or so, I forget) Maxima.. She owed 9K on it... they gave her 5K for it... She was upside down by 4K... so when she bought her 06 Civic sedan for 17K, she had to finance 21K total. 4K to pay off the Maxima, and 17K for the Civic = 21K...

Clear as mud, eh ??

19K is what they are going for... Is it alot, sure it is, but that's the price you're going to pay for a new civic SI...

You could lessen the monthy payment by buying something cheaper, but you're still going to have to deal w/ the fact that you owe more on your car then it's worth.

 

yeah, i understand the whole thing now, thanks guys...i can afford the payment of the si + what i'll have left to pay for the eclipse. i'm just wondering if it's a good deal or

 

Lots of places are also adding a markup to the price of an SI, so be sure you don't pay that. As long as it's at least MSRP, then you're ok, if you're ok with paying MSRP, but it's better than MSRP + Markup (which is total crap).

 

yeah total crap considering that at the end of the day, it's STILL a civic....you markup a veyron, enzo, SL....not a civic.

 

Try selling the Eclipse yourself, at least you'll likely get more then trade-in value.

 

Jesus, why? You owe 11 THOUSAND DOLLARS on your current car, and you want a new car for 19,xxx? You're 18, if you have the financial means to do something like this, be smart and put the money away to pay off student loans instead of putting it into something that's gonna depreciate like a rock. Buying a new car while owing so much on your current car sounds like a terribly unwise financial move to me

 

I think you really need to consider this from a financial perspective. IMHO, it's absolutely silly to dump a car that you're upside down on. It makes ZERO financial sense. Then again, cars in general make zero financial sense.

You're young and want a new car. Who doesn't. But paying $23,000 for a Honda Civic?

Hold on to the car a few more years. Pay the damn thing off.


I wouldn't even consider doing it.

 

You might have trouble financing the full amount since the MSRP < amount financed. Many banks will laugh you out of their office.

If you were to total the Civic, the insurance company would cut you a check for the value of the car, not what you owe on the loan.

 

Its a bad idea to ever trade in a car and roll the balance you owe onto your new car, assuming you owe more on it then its worth - I believe its also known as surety. In 3 years when your bored with your new car your going to want to trade it in, get the latest and greatest and you'll be in the same boat, if not worse. In other words not only do you never get ahead, your actually moving backwards.

 

to add on to what others said,

what happens in 4 years when you want to get rid of the civic, and you owe even more on it? You're better off paying off your car and starting fresh.

Especially ay 18, that's not a place you want to be especially if you are going to college, and you're car will get fucked up anyway.

 

you guys are exactly right. i thought a lot about it, and i'm just keeping my car. thanks guys, you rock i'll be 19 in a couple months....i've been out of high school for a year by the way, and i financed this car i have now by myself under my name. no one's help. i was just going through the wanting a new car phase, etc. etc. i'll be on my own soon so i'm just gonna focus on the financial situation of that. thanks again.

 

I go through it a few times a year, then I think about and decide there are so many other things to spend the money on that another car, or replacing a perfectly fine car just seems like a waste of money.

Good for you about the loan on your own, just keep up with the payments and it will be great for your credit. If you want to get out of this car before the term of your loan is over, make extra payments on it if you have the cash, a few hundred dollars here and there add up to thousands quickly.

 

Good man

 

I'll put it the way my buddy did when I was in this boat: "You'll be pying fro two cars, but only driving ONE." Then when you tire of the Civc in a couple of years and trade IT, you'll be paying for THREE cars but drivng one." I totoally get where the OP is coming from , but financially be smart. Enjoy the Eclipse until it's paid for, THEN trade (or maintain it and have $0 car payment, which would be even *better*)

I'm taking a day by dar approach with my TL which I financed at 18%. Each day and each payment gets me close to being paid off and then I'll no longer be upside down. I can give it to my son, sell it or trade it in lieu of a down payment. Patience is a virtue; a frustrating one, but still.

 

If you can, try and re-finance the current car with the bank where you put your paychecks, see if they can give you a lower interest rate for the shortest loan term you can afford. This will help you to either get out of the loan earlier or save on your monthly payment a little bit, but most importantly reduce the interest you're paying.

Keeping the car is a decision you won't regret.

 

Only $5K for a five year old Maxima?!

Why on earth would she get rid of the car? I racked up 197K on my old Maxima before I totaled it and it was mechanically excellent. I couldn't imagine trading it in for a Civic.