car news for 2013 image
garyjr707
I have a 2010 charger but want to trade it in for 2013. I still owe 19k on it and paying 360 a month but if I get a 2013 charger I don't want to pay more a month when I'm paying now. So will the dealership lower the price enough to have my payments close or the same from what I'm paying now.
Answer
Not a chance. Here's why:
First, and foremost, Per Kelley Blue Book, the trade value for a 2010 Charger, with 50,000 miles (estimated at 12,500 per year, and the 2014's are out), is $13,327 (in Very Good condition). This means that you have $5,673 in negative equity.
Second, the MSRP on a base model 2013 (not even a 2014) Charger is $26,295, the invoice (dealer cost) is $25,292. That's as low as they can go, because that is what they paid for the car. Forget myths such as "they can give up their holdback", or "they can take a loss, and get the next guy". They are going to make some type of profit.
Banks loan money based on "loan to value". This means that the amount they loan is directly proportional to the retail value of the vehicle. No lender will approve you for more than 125% loan to value, to include tax, title, and license. The most they would lend on a car that costs $26,295 is $32,868. If they sold you the 2013 Charger at invoice cost, plus tax ($2,023.36 - estimated at 8%), title and license (estimated at $450), you come out to $27,765.36. Subtract this from the $32,868 that they will lend you, and you're left with $5,102.64 to put towards your negative equity. You would still need to put down $570.36 (the negative equity minus the amount rolled into the loan), just to get the deal "in line" with the lender's guidelines. Your payments would be $635 (60 months at 6%).
To get down to a $360 payment, you would need to put enough money down to finance no more than $18,600 (payment would be $359 at 60 months). This is going to be roughly $14,000.
Sorry I don't have better news.
Not a chance. Here's why:
First, and foremost, Per Kelley Blue Book, the trade value for a 2010 Charger, with 50,000 miles (estimated at 12,500 per year, and the 2014's are out), is $13,327 (in Very Good condition). This means that you have $5,673 in negative equity.
Second, the MSRP on a base model 2013 (not even a 2014) Charger is $26,295, the invoice (dealer cost) is $25,292. That's as low as they can go, because that is what they paid for the car. Forget myths such as "they can give up their holdback", or "they can take a loss, and get the next guy". They are going to make some type of profit.
Banks loan money based on "loan to value". This means that the amount they loan is directly proportional to the retail value of the vehicle. No lender will approve you for more than 125% loan to value, to include tax, title, and license. The most they would lend on a car that costs $26,295 is $32,868. If they sold you the 2013 Charger at invoice cost, plus tax ($2,023.36 - estimated at 8%), title and license (estimated at $450), you come out to $27,765.36. Subtract this from the $32,868 that they will lend you, and you're left with $5,102.64 to put towards your negative equity. You would still need to put down $570.36 (the negative equity minus the amount rolled into the loan), just to get the deal "in line" with the lender's guidelines. Your payments would be $635 (60 months at 6%).
To get down to a $360 payment, you would need to put enough money down to finance no more than $18,600 (payment would be $359 at 60 months). This is going to be roughly $14,000.
Sorry I don't have better news.
What would be a better commuter car than a civic?
Jordan
I have a 2008 Honda civic with 95,000 miles. I am a HIGH mileage driver (in two years I put on 65k miles) and I drive mostly freeway (not much city). I feel like I am spending WAY too much on gas... $800 or so a month. I want something that gets better mileage than my civic... The gas is killing my wallet. My budget is $22k or LESS. Preferably less :) Please help me find a commuter car that is better than a civic...
Answer
They have a Civic natural gas somewhere http://www.greencarreports.com/news/1078883_2013-honda-civic-hybrid-natural-gas-ultimate-guide Natural gas is a lot cheaper, but the problem is finding the NG fill up stations.
I would stick with the car you have right now. Not too many new cars get better than your 36 hwy mpg. Think most are like 40, but the savings will only be like $400 a year. Higher registration and insurance will even things out.
They have a Civic natural gas somewhere http://www.greencarreports.com/news/1078883_2013-honda-civic-hybrid-natural-gas-ultimate-guide Natural gas is a lot cheaper, but the problem is finding the NG fill up stations.
I would stick with the car you have right now. Not too many new cars get better than your 36 hwy mpg. Think most are like 40, but the savings will only be like $400 a year. Higher registration and insurance will even things out.
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