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Mht
I am about to get my license within a matter of months, and I'm looking at cars. I'm really into the 2013 Buick Lacrosse, but my parents keep telling me that it's an old persons car and no one will respect me if I drive one. I'm going to get the Touring edition if I get the the car.
US News Review:
#1 Affordable Luxury Car
8.0 Performance Rating
9.8 Safety Rating
9.3 Exterior Rating
8.3 Interior Rating
3.5/5 Reliability Rating
Answer
Anybody who makes fun of you for having that nice of a car probably drives either a Ford Escort or Chevy Cavalier. The Lacrosse is a great car and it is really cool car to have for your first car. It is big enough to hold your friends and it still gets good mpg. I would love to drive that car but I still have a great car (2012 Jeep Liberty).
Anybody who makes fun of you for having that nice of a car probably drives either a Ford Escort or Chevy Cavalier. The Lacrosse is a great car and it is really cool car to have for your first car. It is big enough to hold your friends and it still gets good mpg. I would love to drive that car but I still have a great car (2012 Jeep Liberty).
How much of a discount can a dealership give me?
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.
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