Acura TL 2006+

taxesquire

marsinoregon

Ok, a few weeks ago I placed my name on a 06 TL. It was built last week and currently in transit to my dealer. I requested NO NAV because the cost is $2000 and current trade in value is $500 - 600 or so; and the fact that I have a good Garmin NAV system already that I basically only use for traveling.

When I selected the car from the dealers list of incoming 06 TL’s (I was looking for Alabaster Silver / Quartz) I saw that they had 2 to 3 times as many cars coming with NAV as without. In 04 and 05, the cars without NAV were the majority and it appears that in 06 the NAV’s will be the majority.

My question is, because the ratio is so high with NAV, am I going to be sorry when I sell the car and it does not have NAV? :confuse:

billyperks

yes.

kyfdx

You won't be sorry when you sell it... NAV models usually only bring about $500 more than non-NAV models...

However, you might be sorry you don't HAVE it.... just from a jealousy standpoint...

If you don't think that will happen, then I wouldn't worry about it..... I think in the bigger picture (not just your dealer's inventory), NAV-equipped units are way below 50% of the total..

regards,
kyfdx
Host-Prices Paid Forums

jason82

thanks everyone for ther replies and I understand I would be paying more but what It's hard to explain when I type but my question is...I meant was am I goint to be losing ALOT of cash since I would incur a loss on the 2004 rather than have just in the first place never have bought the 2004 and bought the 06 outright?
was my mistake a costly one? how much of a difference am I losing since I would be doing the whole trade in then if I would have just bought the 06.....I hope that question was'nt too confusing lol
thanks!
Jason

frisconick

I saved $2,000, and bought a paper map :P

delmar1

I also own a NON-Nav as I am going to guess that 90% of my total mileage is to places I have been to or familar enough to where I can figure out where it is on the street. Thinking of it...I trudge to work and I know where that is. I head out to a lot of the same places in my leisure hours. Newly visited places I end up finding it on the web and hit the mapquest button to find the direction. And ultimately when I was buying my TL...I decided I didn't need a navigation voice to tell me to turn here and there to distract me from my CD player. And ultimately...I get to my destination.

Maybe I am missing something as I don't own a Nav system. Am I ? How does everyone use their nav? I am curious.

taxesquire

W/r/t the person questioning whether to get it - it's not a resale question so much as a use question. I'm hooked on my nav and I'll explain why:

1. finding places I don't know - I like that I can look for things with voice prompts - don't need to take my eyes off the road or hands off the wheel unless/until I need to enter a street name (I can search by business phone #s or saved addresses using voice only). This helps me when going to dr appts, etc. I can also use it to find the nearest grocery/movie theater/etc, so even if I'm unfamiliar with an area, I can search for a generic place without knowing the address. I don't know what the after-market models do so I can't comment on that.

2..finding places I know - I also use when going somewhere I've been 100 times. Even though I know how to go, it's easier to have the system tell me to make the next right, rather than squinting to see the street names. And personally, there's many times I know "about" where a place is, but not exactly. Even if I don't punch in for directions, it's easier to see the street names on the nav system than finding the corner with the pole and hoping the sign is there and angled in my direction

3. Staying on schedule. I travel to Orlando on business with some regularity. I know the way by heart and have been there 1000 times before I had nav. Still, if I want to make sure I'm on target to get there on time (or want to call with an estimated time of arrival), I punch in where I'm going and after setting the route, the nav system gives you the estimate (CAVEAT - I find this is only accurate when there's minimal traffic)

4. Phone #s. I don't have bluetooth, but b/c the nav finds phone #s when you look by place name (i.e. Acura dealership; Home Depot), even if I don't need directions, I can punch up the place to call them for a question/reservation/hrs of operation/etc)

5. Other goodies: when you get nav, you also get voice recog for the climate control and the radio. Nothing makes my friends more jealos than when the radio goes to commercial and I say, "CD, play disc 3 track 7" - and it does!!! Think that's not a worthwhile convenience? I don't have XM so I listen to radio. If I want to switch to the CD player without searching for the button in the center stack and without voice recognition, I have to hit the steering wheel "mode" button past the other FM and AM bands, past the 2 XM bands and past the tape band (if there's a tape in the deck). Then you need to search for the CD (can't do this with the steering wheel controls) and track you want. Much easier (and therefore, much safer) to just tell the car what you want. It also comes in handy in more mundane situations, like when I want to listen to my 7th favorite station and the band only holds 6, or I see a billboard for a station I don't have, I just tell the car to tune in and it does. My wife enjoys that part, as she can never figure out where I've programmed her stations. Now she doesn't have to.

Now with the climate control, it's not that hard just to change the temp manually, and for the most part that's what I do. But it's easier to say "Climate Control bi-level" to get the air to come out at my feet and face rather than scrolling through the options. And its easier to say "Passenger temperature 67 degrees" as opposed to leaning over to change the temperature. I also can never seem to find the rear defroster. Because of the voice recognition, I don't have to.

So that's my take on the nav system. In my mind, it was well-worth the extra $2,000, even if I don't get any of it back on resale.

taxesquire

Let me restate your question to make sure I understand: having financed a used '04 TL a few months ago, how much more money will you pay by trading that TL in for an 06 than if you had bought an 06 initially?

I think to get it down to the dollar is a tough calculation. But when you financed, you had to pay certain destination charges, doc fees and contract fees that you will be charged again. There might be a tax difference, too (maybe you pay a larger portion of taxes upfront where you are).

As far as actual car cost - find out what your payment for an '06 would be w/o your trade, and then how much it'll be with your trade (must be the same payments over the same time period) and that'll show you the rest.

Someone else please comment to confirm my thoughts or correct them.

Kirstie_H

Yes, these fees will be charged again, along with vehicle registration and sales tax - in a lot of places, the tax is calculated on the difference between the price paid for the new vehicle minus the trade-in allowance on the old vehicle.

Good advice to have the payment calculated with AND without the trade-in. The payment WITH the trade-in is almost certainly going to be higher because you are likely to have serious negative equity in your '04 TL - the '05 TLs have a current MSRP listed at $33K-35K, and that's on a brand new, never driven vehicle. You owe $33K on a used vehicle, one previous model year.

You can do some calculations on your own making some basic assumptions, some of which you can garner from our Acura TL: Prices Paid & Buying Experience discussion. Go to the Edmunds.com home page and click the "new cars" tab, then build a 2005 Acura TL with options you want. For the 2006, members are reporting that approximately $225 will be added to MSRP. You might want to add more if you're adding a lot of options.

Now, go to the Edmunds.com Loan Calculator and enter the information you know - you can get your sales tax rate from your previous vehicle purchase or registration paperwork, or let our calculator fill in an estimate based on averages.

Until you get a trade-in value from Terry in the other discussion, you'll want to assume that your vehicle is worth $33K and that the payoff is $33K for a net of -0-. You should also assume that you aren't going to get a better loan rate, as that's unlikely to change over a period of 3 months - 12%, right?

Using the assumptions above and allowing the calculator to select average tax/registration fees, I come up with a monthly payment in the $850+ range, minimum, assuming you have no cash to put into the deal, and assuming you can zero out your negative trade-in equity by purchasing the new vehicle at full MSRP.

Kirstie_H

As if i *need* to keep talking....

I just took a quick look at the trade-in value that Edmunds calculates for your '04 TL, and while the low mileage is your friend, you're still looking at a dealership trade-in value in and around the $27K range. This means you're looking at rolling $5-6K of negative equity into the deal, so you'll want to calculate assuming that your vehicle is worth $28K max, with a payoff of $33K. If your credit isn't so hot right now, you may not even be able to DO a deal like this. You might not be able to get "bought" by a finance company for that amount... OR, you will have a ridiculous interest rate.

taxesquire

Kristie and I are doing a "tag-team" on this. When she refers to "negative equity," you can think of that as an amount to be added to the purchase price of your new TL. So if you would be able to buy that TL for $34,000, if you have $6,000 of "negative equity," the amount you need to finance (with cash or a loan or both) is $40,000.

Your "negative equity" plus the destination charge and contract charges from your '04 purchase will be the extra amounts you would not have paid had you bought the car you wanted initially.

jason82

thanks everyone, but my question is how am I different than anyone who ever wants to upgrade a car or trade one in? I spoke to the dealer today and they told me that my payments would be roughly about $800 a month (but that's with a 8% rate) so I'm looking probably at $900 a month...and that was for a brand new 05 but an 06 probably won't be too much more...also in the brochure they had a picture of a silver one with the a-spec package...it's gorgeous...but anyways, yeah Iplan on keeping the car for a while (at least 7 years) so I really don't want to be without NAV for that long...also I just keep going back and forth on the color...on one hand black is nice and elegant and everyone I know loves it (besides me lol) but I think Im in love with the silver with tinted windows or maybe the new blue that's coming out? and a new silver too Im hearing? I wonder what they will look like...so anyways, I'm still thinking about it and just not sure if it's totally crazy and if I should jump for it or not...(I'll basically be working just for my car lol) but then again...that's sorta what Im doing now

taxesquire

You are no different from anyone else who wants to trade in a car that isn't fully-paid off. The difference is that most people do this after having the car for at least 5 years, when the value of the car is more than the amount they still owe, which means they can make some money from the sale or trade of the car and apply it to the car they are purchasing.

You are more likely to owe money on your trade.

elvis4prez

Some have commented on wanting to see the "new" blue (that includes me!) and the new silver on 2006 model TLs. They are the same colors being used for 2006 Accords so you can go to your nearest Honda dealer. I saw the silver (looks nice, a bit "creamy"?) but stillllll no blues (I got the blues about that?!).

laurasdada

Jason, I don't know your financial situation (other than what you've described here), but it really sounds like you're setting yourself up for some serious financial difficulties if you upgrade to a new TL. I'd stick with what you have, save up some money, pay off your TL, establish good credit and then buy a bigger, better ride. Do you own, or want to own, a home? Upgrading your wheels could set you much further away from that goal...

I know you're young and maybe not thinking too much about the future, but remember that the most powerful force on earth is compounding (as in interest, dividends, investments). Save money, earn money on the savings and the earnings and let it compound. It adds up (relatively) quickly...

Good luck. I have an '05, Abyss Blue. Love it. Borrowed $ at 2.9% instead of paying cash because now with rising interest rates my savings account is paying 3.4%! Theoretically, I can make more than 2.9% investing. But it will be a while before you can earn more than 8% with a conservative investment...

eg424

I am surprised the the "06" passenger seat, in the TL , didn't get more adjustments. There have been many comments on these boards about the fact that the seat has only 4 way adjustments for a car of this class. Any thoughts from the forum?

I also noticed, after some research, that the new TSX has a slightly larger turning radius than the TL. This seems strange to me since it is a shorter car. Any engineers out there have an answer.

bartalk3

By the way, the $50,000 RL also has just a 4-way passenger seat adjustment! Get with it, Acura.

Kirstie_H

Continuing with the tag-team theme...

If you do not understand what the difference between trading in now and trading in 3-5 years from now will make to you financially, then the absolute best advice I can offer you is to NOT trade in until you do.

To put it simply, your car is currently worth a significant amount less than you owe on it. If you wanted to just sell it today (without buying a new vehicle), you would have to pay - IN CASH - an additional ~$5,000 to the finance company to get rid of it. A car dealership is likely going to give you $27 - $28,000 for it, and you owe $33,000.

If you wait til you've had it, say, 3 years, the ratio of what you owe to what the vehicle is worth as a trade-in will likely be equal - your car will probably be worth about $18K at that point, and that's about what you're likely to owe. Then you can trade it in with no devastating financial consequences.

If you trade in your car today and roll the negative equity into a new car, you will be even worse off - let's say you graduate college, get a job, get married, have kids, whatever... and you need to buy a new or larger vehicle in a few years. You will have negative equity in the new TL up to your eyeballs because you financed it at more than 100% of its value (which, if you don't have a credit history, I doubt you can do anyway). And, in order to get payments under $800/month, you'll have to finance it for more than 60 months (5 years). This means that instead of being at a "break even" or better level in about 3+ years, like most people are, you'll still be in a negative equity situation, and you'll have to yet again roll negative equity into a new vehicle.

You can only roll so much negative equity into a new vehicle, so it is better not to start this pattern of accumulating negative equity.

Please, please do not even think about trading in your vehicle until you fully understand the ramifications of the negative equity burden you will be putting into the new finance deal!!

ggesq

I don't know if this is relevant or not and/or if it is an option for him, but has he considered selling it privately and quite possibly get a selling price at or slightly below 33k? In light of the fact that 05's are selling like hotcakes right now at great prices makes the above comment/question irrelevant as a person in the market for this vehicle can get a new TL at a used TL price.
However, I just wanted to throw it out there for him to consider. Good luck with your decision.

Kirstie_H

Good idea, but his is an '04, and since the MSRP for the '05 tops out at about $35K, we're looking at, at best, a break-even situation.

jason82

thanks so much to everyone for giving me your honest and valuable information...I think I'm being swayed to hang onto it until about 3 years from now (when I'll be paid up) I figured that if I pay a thousand a month I'll be done in a little less than three years...but what you seem to say is the main problem is the negative equity...but what if in about 3-4 months all I owe is 27k since Im paying more than I need to at a thousand a month (my bill is 700 a month) so then there's NO negative equity rolled into it...would THAT then make sense? see I love the TL and I plan on keeping it for a while, I don't have a million dollars so Ifigured that I would keep it for at least 5-7 years, but I don't want to be 5-7 years without Navigation and not in the "look" I love which I THINK lol Is now the silver with tinted windows and get ready to shout at me but also the A-spec package how much extra is that?I like going big...now I make about 1500 a month but Im in college and hope to make more money in a few years...anyways, I'd rather pay now for a car I'd keep for a while then pay up a car that I plan on trading in 3 years...again PLEASE tell me if that makes more sense or am I still making a mistake by even thinking about it? Thanks SO much!!!
Jason

roaringbull

Jason, you've been getting some terrific advice from wise people, but you do not seem inclined to listen, so why ask (again) whether it is a mistake? Everybody in the forum has pretty clearly and patiently explained why dumping your 05 for an 06 is a poor move financially. It is, tuly. That said, a car is an emotional decision and it is NEVER an investment, so if you;re going to do it, feel okay about it and be prepared to pay the consequences. By the way, I believe -- and somebody else can tell me if my math is right or not -- that at this point in your loan's life, even paying $300/month over the monthly premium will not let you cut much of the principal out of your front-loaded loan. So your assumption that you will reduce what you owe to $27k, just by pating $1k for the next 3-4 months, is not true -- the vast majority of the monthly payment (at this early point in your loan) is interest, so you will not be making much of a dent in your principal. I'm 40, and a physician, and in terms of smart financial decisions, I'm more interested in getting a good deal on the 05 you;re unloading than looking at a new 06....
Good luck to you.

jason82

what do you mean I won't be able to get it down to 27k??? I owe 33k now so if I pay 1k each month for the next 6 months then I owe 6k less which is 27k...am I missing something?
thanks
Jason

jason82

it's an '04 not an '05 with less than 10k miles on it.

taxesquire

Jason, to determine if Roaring Bull is correct re "prepayments," you need to look at your lease contract and determine whether prepayments go to principal only or what.

Re your prior post, paying extra money now or later doesn't change the mathematical formula. You're still paying more. It's just that instead of paying $41k for a $35k '06, right now you're paying a $1,700/mo financing. Is $1,700 a month a good deal?

Also, keep in mind that it's dangerous to buy too much car in anticipation of earning more money. Regardless, since your preference is silver, and you seem stuck on dumping your current ride and asking questions until you get the answer you want, I suggest you price out some '04s in silver with the A-spec. Buying used will at least minimize the damage. You'll still be overpaying the same amount becasue of the financial constraints on your car, but the total price will be less.

glenford

To go backwards a bit:

Jason, if (as you said) you bought your car 4 months ago for $30K, and financed it over 4 years at 8%, your payments would be somewhat more than $700/month, and you would have total payments remaining somewhere between $32 and $33K. It appears to me (from your original post, which may be slightly confusing) that this was a purchase with roughly those parameters. You do not owe $33k on the car. However, you probably still owe very nearly $30K - the post above about the fact that you are primarily paying interest on the money you borrowed until later in the loan life is true. And, you will pay $33K more for the privilege of using someone else's money to have paid for the car while you collect your own funds. Your total $ spent on the car will add up over the course of the loan to around $35K. And, by the time you spend this $35K, your car will be worth $15-20K (more or less).

Call your lender, and ask them to send you an "amortization sheet" (or schedule) that shows how much of each payment is interest, how much is principle (that is, how much is going to pay off the original $30K) for each month of the loan. You have time to do this - the 06 cars will still be there when you get this information.
If you came into a sum of money today, it would still cost you $30K to pay off the loan - even though you already paid $2800 in monthly payments (I hope $3500 now - since the first of the month is here!)

You have several problems:
1: your car is declining in value faster than you are paying off the loan
2: you do not appear to understand the loan process
3: you have "car lust" for the new one (I recognize it because I have had it myself)

You cannot do anything about the first problem except wait. It is in the nature of cars - they are not generally an appreciating asset. Thus, this is a question about how fast you want to throw away your money, and what joy and return you get from it. Only you can decide if this is where your money should go.

You can solve problem 2. Read the thoughtful posts about your problem. Speak to your bank, and to friends and relatives who have gone through this process, until you understand how it works. There is no rush to decide today.

Problem 3 appears to be clouding your vision. I hope to be polite here. If you have already decided to do this, spare us from giving you any more advice.

If you decide to go the personal education route, let us know what you decide. There are lots of folks invested in your saga who would probably like to know.

Good luck!! Tim (By the way - Great Car!!!)

Kirstie_H

jason,
The entire $1,000/month does not go to pay down the principal on your vehicle. Since you just recently purchased and financed your car, the vast majority of your payment currently goes toward paying the interest. If you are paying an extra $300/month, in 6 months your principal (the payoff amount on your vehicle) is likely to be more in the $30,500-30,800 range.

It is nice if you can pay extra against your loan each month, because it WILL bring you to a break-even point more quickly. But you might consider saving some of that extra money for a couple of months and having an aftermarket nav system installed. Then you might feel that you can live with the car for another year or two. Personally, I've managed to live a good 38 years without having all of my wants immediately satisfied, and it hasn't done me in yet.

You have to make your own decision, of course, but you've come here to ask for advice, and have asked in every possible way whether it's a bad decision to trade in. Everyone's telling you YES, absolutely, positively. If the answer you want to hear is "go for it," you might as well tell us so that we can stop wasting time giving you honest advice.

goodegg

Jason - what's your major in college? I'll bet it's not numbers oriented, because you just don't get the basics of installment financing. You're also in way over your head in this car. I'll bet the majority of the posters here earn well over an average income, and probably have saved a few duckets too, and they wouldn't dream of doing what your considering. You have a great car right now. If you're so into the NAV just buy a Garmin and be done with it. You'll take a bath trading in your car for an 06. Why do that to yourself?

Don't worry so much about show. Care more about dough. There will be many other demands on your wallet when you get out of college and move out of your parent's house. Don't shackle yourself now at the detriment of later. OK? Booyah

jason82

ok you all win lol....I will keep my '04 for a few years...until it's paid off then trade it up...thanks everyone for all your advice and for being patient, i appreciate it...so just to confirm...in 3-4 years it's ok to trade up when it's all paid for right?
Thank You!!!
Jason

taxesquire

so just to confirm...in 3-4 years it's ok to trade up when it's all paid for right?

When the car is worth what you owe, your only "loss" will be the additional contract & destination charges. If you keep the car longer, then you will build "equity," for example, when you owe $12k on you car, but the car's value is $15,000, you have $3,000 of equity. You could then turn a profit on selling your car and use that money as a deposit on your next car.

mldj98

I have sat back and have read all the posts from people giving you good sound advice and yet your eyes are still closed (so to speak). What I don't understand is why you continue to ask for advice if you are not willing to absorb it into your brain...so let me save everyone else allot of time and efforts and say this "Go for it"...buy that 06 TL...but beware of the repo man!
Isn't that what you want someone to say?
Moving on......

bodble2

Man, you have just set poor Jason down the path to financial ruins!

Unless your father is Bill Gates, I don't think any student should be buying a new car in the TL's price range. If he has to have a new car, get a 2006 civic!

archichris

Hey all, FYI, the 2006 TL are up on the Acura Web Site.

jason82

To MLDJ98 why would you post that to me? you posted partly "you continue to ask for advice if you are not willing to absorb it into your brain"... why don't you read MY post just two posts above this one!
Jason

jason82

leadfoot...I have a bachelors in Computer Science (graphics) but I'm going for my Masters now in Speech Therapy which Iwill have my degree in about 2-3 years.
thanks for your input.

jason82

if it matters...my payoff amount is
Payoff Amount: $33,515.28 so you're saying that if I were to pay 10k tomorrow then my total payment owed is 23,515 which is less then my car which would then give me equity?
thanks

archichris

I think that what they are saying is that, of your 10K payment, only a percentage of that amount actually goes to what you owe on the car [the 33.5K]. A percentage of your payment may be applied towards interest, which you can't recoup. Or, it may be like a mortgage on your home, where you can pay additional amounts just upon your principal. [This would be ideal] However, the bottom line is that, one way or the other, you will be paying a large premium to step up to an '06, whether you pay the 10K as a lump sum, or later as in additional payments/amounts.

As an example, years ago, a friend of mine had a 350Z and was completely smitten with the new Ford Explorer [go figure!!]. He was upside down on his 350Z note by about 3K. The dealer offered to roll the 3K into the financed price of the new Explorer, which my friend did. Three years later, when he wanted to trade again, he discovered that his payoff amount was virtually the same cost as a brand new one, and that his 3 year old Explorer was worth 5K less than his payoff. So, to get the car that he wanted, he basically had to pay 5K over the sticker price.

jason82

archichris no I believe the 33k is the payoff amount that is the whole amount I owe...that is already configured with interest in it...obviously since when I did'nt buy the car for more than 30k..all that extra is the interest.

jason82

in June my total bill with finance charges and all was for $46,204 I put 4k down which brought the total I owe to $42,204 that's what it said on my paper from the dealer as to how much I will end up paying. That was in June...now after paying 3 months of $700 $700 and 1 thousand for July August ans Sep., my bill says that my payoff amount is 33k? I'm confused...is that payoff 33k only if I do it now..meaning so interest won't accrue? I guess that's what it means.

goodegg

Jason - don't confuse the principle of the loan with the interest portion. Unless you got hosed with precomputed interest (which I doubt you did) you only owe interest on the principle that you've used. So if you use the principle for 1 month, you'd owe 1 month of interest. Your monthly payments have paid a little principle and a lot of interest.

Your payoff is computed as the original amount lent to you less a little principle that you've paid back plus the daily interest charges. So yea - your payoff of around $33K is what it will cost you to pay off the lien in full. The payoff is good thru whatever date you requested it to be thru.

Got it? Good. Still - don't do this.

wyman

MSRP's are:
TL $42,000 ('05 was 41,000)
TL NAV $44,800 ('05 was 44,300)

Two interesting points:
- The base TL is up $1,000 in Canada but only $240 in the US
- The NAV is now a $2,800 option compared to $3,300 last year.

So I guess I'll be buying the 2006 TL NAV (or the Lexus IS).

PS Saw the new silver paint at the Honda dealership, slightly lighter color.

jason82

Thanks I thought the 33k was interest and all but now I see that out of my 700 a month payment only about 550 is going towards that 33k...the rest is going for interest.

jason82

I saw the blue and silver today on the Honda Accord as well today ( I was curious and I honestly did'nt notice any difference then the blue and silver from '05...looked nice.
Jason

wyman

And the '06 has a 4 yr bumper to bumper warranty in Canada too.

jason82

ok I know basically everyone including my long lost uncle has told me NOT to trade up now to an '06...and I appreciate ALL the advice and YES I AM heeding it...so please don't yell at me now for asking the following question...would the same NO answer apply to trading in my '04 TL for a different '04 WITH navigation? (and possibly a different color)?

glenford

Jason - the problems are all the same, since they start from the money you owe on the car you have, not on what you are buying.

(humor follows) If you are going to do this, please get the '06. When the repossession comes next year, I will be able to get a good deal on it. :-)

Kirstie_H

OK, I'm confused - Yesterday you said you had an 05, today it's an 04. Not that it matters tremendously as you'll still have a problem, just not as big.

Your '04 is worth less to the dealer than you will be able to purchase an '04 for, because the dealer then has to turn around and sell your '04 at a profit for him.

So, let's say you get $27K for your '04, and let's say you pay $30K for another '04. You still have $6K of negative equity (The $33K you owe minus the $27K you get from the dealer) that has to be rolled into the new loan. You are then paying, and trying to finance, $36K for the new '04. Not only is that rather foolish, but again, it may be very difficult to get a lending institution to finance you for $6K over what most people are paying for the same vehicle.

An auto loan is a secured loan, meaning the lending institution has some protection from losing all their money in case you default. They can take the asset against which the loan is secured, sell it, and recoup most of their money. If they lend you more than the vehicle is worth in the market, their risk of loss is much greater. Since you don't have a long credit history or a large income, they are going to look at you as a risk, and they aren't likely to make that risk greater by loaning much more than the value of the vehicle.

jason82

sorry for the confusion...it's an '04...If I did type that it was a typo or I meant to say I was thinking of getting an '05 but it's ok...thanks

mldj98

jason82,

I did read your last post saying that you were not going to trade in your 04 or 05...whatever you have...my point is simple...how many posts from how many different people did it take for you to realize that what you want to do is not financially smart....and then I log on tonight and your still add it....what is wrong with you? I said it before and I will say it again...buy the freakin' 06 TL and get it over with...SO many people have given you great sound advice about this but your not getting it....now you want to know if it is smart to trade for the same year but this time get a nav...I just shake my head in amazement...your in college right?
This forum is great for people to learn about the car they wish to purchase and perhaps get a liitle advice from other posters and yet every single post I have read concerning all your questions is all heading the same way....KEEP YOU CAR!!!!!
But as I said before...I think you are looking for someone to tell you what you want to hear and so that's why I said...buy the 06 TL....that's what you want to hear right? Of course once you do that you will be back on this forum asking how you can get out of the huge mistake that you just did...I can read it now...boy I wish I had just kept my 04 or 05 ....whatever you have...if you go back and check all your posts...your not sure what year you have....
I say again...moving on!!!