To me those funny offers are another side of ADM stickers. Very few products trully deserved those stickers, yet you could see them plastered all over the place not so long ago (I would not be surprised they were still some out there). Combine them with some obnoxios, slick sales guy ( what kind of specimen must be swarming an establishment that puts $3K ADM on a KIA, or Mazda, I could only imagine), and you have ten obnoxious customers today per one obnoxious salesman then. Unfortunately, it's this uggly common human nature: take advantage you fellow's human's misery and if you can also take revenge for that last time you got hosed (even, if it wasn't you, but your sister-in-law's cousin's friend) - it's practically irresistible.
I would add that the car sales industry kind of set itself up for that wave with its "bazaar" sales model where price is set not before the customer shows up, but after we learn about all his/her buttons, weaknesses and pet peeves. Constant great whale hunt so to speak. Now that times did get so much harder, so it had to backfire with more people trying to take said advantage and revenge. Unfortunately sales guys have no choice, but weather it out - hopefully you won't try to take the revenge back, especially on those innocent, when it gets better .
Just to be clear - this was just an outsider's observation, not a criticism. I would not make such an offer myself, as it's really counterproductive. I might take your bonus, or even holdback (only if you let me ), but I would not make some off-the-wall offer of thousands below any cost - makes no sense to me. But I can easily imagine less informed person thinking if they could get 60% off on clothes, or electronics, why not on cars, especially if so many are unsold and sitting on lots... Salesguys always say "you won't get if you don't ask", when they refer to those "first pencil" offers. Well, now a lot of people make their "first pencils" with the same mindset, thinking it just might stick.
I'm thinking a lot of the gross getters won't be around when sales resume. I'm just not looking forward to having to deal with a gen x or gen y type on my next purchase. You know the type. Indifferent to whether sale is made or not. If the SM lets it go he gets another car payment, rent and pizza by the x-box.
We've come to expect agressive behavior from commissioned sales folks so this new breed might be a challenge to us boomer types.
Until then I'll use MSRP as my guide and offer half without waiting for them to tell me what they expect to get. By the way, we've had a housing bubble, an economic bubble...when are we going to get the car price bubble to burst?
I sure don't want to be wading through a bunch of 08, 09 and 10 models when I buy again in 2011. Move em out. Next!
Be assured that you're unlikely to see someone who is "indifferent" like that selling anything on commission. Fast food drive thru? Video rental place? Yeah. Commission sales, not.
I am not sure what you're referring to as the car price bubble. I can't see thge current 5% to 10% profit margin as a bubble, or anything huge that's about to collapse. If there ever was a car bubble, then it burst with the onset of internet in the 90s.
Anyways I'm off on holidays, after finishing 2nd best month I ever had in the biz.
, i just have to know. back in '72 when you were there, was the 'immaculate reception' really a catch?
You know the rules here. I can’t answer that question as it was asked, so let’s try this:
We all know buyers like to make their deals just like they researched them but there are times when a competing dealer jumps into the deal. Sometimes that competing dealer, trying to make a deal for himself, will end up knocking the deal out of the buyers reach and the buyer doesn’t have time to go back to his original plan. Now, by the accepted rules of Car Sales 101, this is still a live deal and if the buyer’s co-worker happens along and sees this deal, he is duty bound as a co-worker to not let the deal fall unaccepted. To do so would not set well with all the other guys at the office. Therefore, it’s perfectly legal for the co-worker to take this deal and everyone who watched this transaction take place knows that, while this deal was not intended for him, it is OK for him to take and if he drives it over the curb the entire office will be greatly rewarded for it.
Like I said, perfectly legal.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
GP.....good to see you back. AND, congrats! Know you've been going through some life changing times.
As Bluto would say.....
"Nothing is over until we decide it is! Was it over when the Germans bombed Pearl Harbor? Hell no! And it ain't over now. 'Cause when the goin' gets tough... (thinks hard)........ the tough get goin'!"
Sometimes it's harder to let a sale walk, than it is to make the sale. In the case of your Altima people, I'll bet this isn't the last you'll hear from them. But, if not, you've lost nothing!
I'm so proud of you for losing all of that weight. It is not an easy thing to do. Before long, you'll have to replace your picture on Car Space and show us the new you.
It's a shame that you had to spend so much time on that father/son deal. Don't worry. There are still other fish (baby seals) in the sea. Besides, some people don't recognize a good deal even when it hits them in the face.
What is this with you and Driver? It must be a Canadian thing. Holidays!
Well it's a Canadian thing when you live in Canada these days...you have to escape the winter, and I don't know where this global warming is that Al Gore promised us.
So, here I am in Florida, less than an hour from the Superbowl...but I'll watch it on TV. As promised, I have my preliminary review of a Ford Fusion...just 100 miles so far, from Orlando (what have they done to that airport - what a mess, of course when I was there last 25 years ago it was one of my favorites).
Overall, great value, does everything well considering the price. Huge trunk, nice instrumentation, fairly comfortable seats, fairly solid feel, steering is ok. I prefer the Fusion to an Impala, Buick, Camry (too generic - though I am sure it will be more reliable and holds its value better), Civic (don't like that direct electronic steering). I do prefer the last Accord I drove more, though that was a few years ago. The Accord seemed more substantial, more solid, more feel in the steering.
There are some things that bothered me, the bulging hood doesn't give you a good sense of where the fenders are, the rear window is up high and so rear vision and rear side vision are cut off quite a bit, and the balance isn't quite right, the forward pillars are too far forward and cut off some forward vision. Most annoying was under the steering wheel the dash is low and I keep hitting my knee there - that hurts
For this price and class of car I think it is much better than cars I have owned in for this category. Would I trade in my 3 Series for it? Hope it won't ever come to that, but it might ifr the economy doesn't get better. The seating position, the egonomics, the performance, the solidness, the feel of the road, even the sightlines and view are superior in the BMW - it is designed right by engineers and designers who know what they are doing. If I could get a 3 Series for $30,000 in the USA compared to maybe $22000 for the Fusion (guessing at prices), I would really try to swing it. Over 5 years it would mean $1500 a year more, and on a lease maybe $100 more a month. I know it isn't easy but I feel I have made a better investment in a $30k bimmer, than kinda blowing 22k on a car that is just basic transportation
Lots of GMs down here Richard. Haven't seen black yet. White, lots of silver and grey, and an unmarked police cruiser in dark blue. There's a silver one outside next door and they do look good....lots of content there for a reasonable price.
So, here I am in Florida, less than an hour from the Superbowl...
A quick off topic thing then onto the car stuff.
I just found out yesterday than now Son #2 is going to the game along with his brother, 4 college buddies of theirs and my nephew. Yep, Steelers fans travel well. From what I’ve heard, they out number Cardinal fans down there 8/9 to one. Some things just ain’t fair.
Haven't seen black yet. White, lots of silver and grey
There must be an echo in here. That’s what I saw last week while on vacation visiting my brother in Delray Beach (now back in the Burgh. 22 F when we landed at 6 PM last night. Now I know I’m home).
If you find a black one you better just take it. Don’t ask any questions and don’t stutter or it’ll be gone and poor Richard will be disappointed once again. I’m not so sure he’ll be able to take another hit at his age.
Good luck with that hunt.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
...when are we going to get the car price bubble to burst?
I'm thinking it's already done so. Upside-down financing may be a thing of the past. Or perhaps not -- I'm sure the pros will let us know.
The notion that someone with crap credit could trade in a car with negative equity, only to do a deal that involved even more of the same, was news to me a few years ago. I was amazed back then, since I figured that the people who most needed to be careful with money (since they appeared to be stupid and/or ignorant) were being encouraged to be even more so.
Now it appears that a fair portion of the business depends (depended?) on such stupidity. Can the automobile industry survive on only the people who buy (can't lease so much any more) cars that they actually need and/or can afford?
I think that is a bubble in the industry - too many dealers. In any major metro area you can find 20 dealers of the same non-lux brand within one hour of drive and usually three-to-five of lux brands. I would be curious to see how many dealers of any brand are in Munich or London. Would not suprise me if the number was less than, say Cincinatti or Orlando. Just like any other part of retail - we have way too many dealers to sustain them in "normal" non-leveraged, non-overstretched economy.
We have perpetuated a myth that "middle class" "deserves" a new Tahoe every three years (you know, to tow that boat and mother-in-law once a year) and a lot of people bought in. It's going to be very unpleasant to businesses (and customers) to learn it ain't so. Good in the long run - but very unpleasant in near term. Think drug detox and you get idea.
I'm so proud of you for losing all of that weight. It is not an easy thing to do. Before long, you'll have to replace your picture on Car Space and show us the new you.
Thank you Rich..... I will put the new pic up all good time, Maybe I'll even put a pic up of the new girlfriend also :shades:
I think that you are exactly right. You hear a lot about how the recession was caused by the unregulated financial markets and the over-priced, over-built housing market, but no one ever comes out and says that the American consumer-debt-driven economy was simply unsustainable. :sick:
Sorry if this is in the wrong place. Here's my question:
I have a truck I just purchased and owe about 12k on, I'm figuring the trade is about 18k. I'm going through a divorce and need to get some cash. My question is: can I trade the truck and, assuming the numbers above come through take 1 or 2 k out of the truck as a downpayment on a lease of an Accord or Civic and get a check for the balance?
thanks in advance!
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Yes you can. I did almost exactly that in November. I traded the car and bought new with no-interest loan. My credit allowed me easy full financing, so I asked for a check on the full equity. Had to wait couple of days until the bank paid the dealer (they issued IOU slip at the day of transaction), no problem. So as long as you are confident the dealer is going to remain solvent for next couple of days, you can get all the equity, not just thousand or two.
In your case (new lease), I would do just that, as it doesn't pay off to lay money down on lease (other than security deposit, first payment and such - just no cap cost reduction). Why? Putting money down on the lease defeats one of its biggest benefit, i.e. transfer of the depreciation risk from you to the bank. As an example, If you put say three grand as cap cost reduction, you do reduce your payments, but if somebody rear-ends you next day and totals your car, the three grand is as good as gone. In case you did not put anything down, you don't owe anything to the lessor (bank) anyway, as GAP insurer (included in virtually all lease rates today) will take care on the difference.
In other words - benefit of lower monthly payments is not worth risk of losing the money altogether. Take the check for the full equity minus minimum fees/deposits required at lease inception. Put the money in your savings account and, if necessary supply your higher monthtly payments from that account. It's a better deal as long as your money factor rate isn't too high.
I have a truck I just purchased and owe about 12k on, I'm figuring the trade is about 18k.
Not sure if it's me or is it not explained correctly. Are you saying you think the truck is worth $18k but you still owe 12k? Then you want to use the difference for some cash and to help get your lease. Since I am not clear and it would be best for a car person to answer I'll limit my thoughts to the financial and emotional side which I do know about. * Don't do anything too hasty right now, your judgement will not be good. * Leasing might not be as good as it sounds for you. Then you are locked in and it isn't too easy to get out of, and you could lose big time. *If you really need a few thousand immediately why not sell your truck and buy a cheaper used car. At least if things don't turn around you can sell the car again and get more cash. If you run out and lease you are basically on the hook for the full amount owing, unless you can sell the lease and pay a big penalty. * If I have your solution down right I think you are digging yourself into a bigger hole that you might not be able to recover from. I think the fact you need a few $1000s and can't explain the situation clearly is really a bad sign. It is a terrible and very expensive way to try to get a few $1000 bucks. I'll let the car guys explain it from their point of view........
Now, I did the car bit....I gotta tell you all, that game was awesome!
Yes you can. I did almost exactly that in November. I traded the car and bought new with no-interest loan.
Dino, your answer is the opposite of mine, so just to clarify. It sounds like you made your decisions based on cool logic and you weren't desperate for a few $ks.
If you are in pretty good financial shape and really want to trade in a car and do a lease I agree with you, no problem. If you are desperate to get a few $1000s to go through a divorce or pay for a lawyer I think it is asking for trouble.
I second that. Your advice is of course much better from "live within your means" point of view - which I of course support. My advice was based on lease being already decided factor, i.e. if you lease then definitely take the equity out - but lease has its traps and is definitely NOT for everybody. In fact it's for FEW, definitely for fewer than are currently sold to.
Thanks for the replies. Needless to say this is not a good position to be in. The divorce came out of no where otherwise I would not have purchased the new truck since I traded in one that was paid for. Wish I had that back now. However, I do need some cash in order to finalize the divorce and this is one option I am considering. If I go this route I will most likely put myself in a $2k beater for a little while, then look for something else down the road.
I'd rather not sell the truck myself. I know I would get more, but I think it would take longer and I don't have much patience for looky-loo's. Not to sound like a car ad, but the truck is "practically new!" It's an 09 GMC Canyon crew cab SLE with only 1600 miles.
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Trading your soul to the Devil for success is bartering. Trying to trade him some of the gold you made during your success for a few more years of life is bargaining.
Which one is trading in your $18k truck to get $6k and lease a new vehicle - to have an extra $1 or $2k needed cash? :confuse:
Goodness! I didn't realize that we were bartering/bargaining for such big things. I was only referring to things like Persian rugs, jewelry, furniture, and cars. What was it Flip Wilson said about the Devil? :P
One word of caution - those book values may be very, very hard to get, especially on trucks, especially on domestics. Not saying you must be wrong with 18k worth, but it may be considerably less than you think - unless you already have taken recent economical turmoil into account. Good example: in November books were saying my 6-yo car was "worth" over 8 grand (trade). I got seven - three months later they say would be "worth" just six grand. Market has deteriorated in a staggering pace.
I'm with Driver on this one. Better not get locked into a lease if you can't get out of it easily. Also, if you trade and get some cash out of the deal, don't let your Ex know it. She'll just ask for more. Good luck with the next few months. It won't be easy, but life has a way of working out things. In dealing with the money issues, try to keep your emotions in check. Some bad mistakes have been made during emotional moments.
Dino is correct. Don't expect to get what Edmunds, KBB, and NADA quote. Values are dropping more and more each day. Publications aren't beginning to keep up with the real numbers.
Well, guys. This new dealer is really after me to buy the '08 Grand Marquis with 10K miles. It was a rental held for 6 months. He has dropped the price from $16,870 to $15,972. I searched a 200 miles radius for prices on the exact same car. Ninety five percent of the dealers want between $17k and $19k. TMV is $17k on three web sites that I checked. This sounds like a really good deal. I'm getting really tempted. This GM is loaded and in pristine condition.
This new dealer is really after me to buy the '08 Grand Marquis with 10K miles.
Richard, if you do go for it tell him 15 even and it's a done deal. If you do 10k miles a year that car will last at least 15 years...$1000 a year! It will be a great car and if you holiday in Florida you will fit right in. Just don't put a vinyl roof on it, I saw one today...sort of taupy color with a vinyl roof......makes it look like a giant turtle.
Remember book values are dropping fast on each end, i.e. also at retail end as much as on trade-in. Can't say much about your GM (not my kind of car), other than if you think you like it and you'l keep it for long time, it'll be fine car for you.
Pricewise - I would not be as attached to any TMV right now. For ballpark, I would find out how much current "employee plus-plus" price is (or something similar that is a real-life transaction value, not a sticker) on same config brand new '08/09 and subtract 15-25% off that, depending how aggressive you want to be in price search and how badly you need/want this car. Which means, if the same new would have cost you (not sticker, real price) about $20K including all dealer fees (but not including taxes), 16K is a good deal already. There is a point of diminishing return on your search - if you feel you reached it and you like the car, take it.
But to bring this on topic, for those dealerships that are open on Sundays, did you guys see no traffic, only serious buyers, or people who hate football?
I'm going through a divorce and need to get some cash.
All I can say is good luck buddy!!!! For the record I am not talking about your vehicle. I would consult a lawyer on that issue. Theoretically it is possible to do that. I would shop a few dealers to see what you can get.
Richard, here is something else to worry about when buying a car.
A piece on local tv today was talking about how many have lost their shirts by trading in a car, etc. and then having the bad luck of having the dealer go broke before the dealer pays off their trade in. In some instances the trade in may have already been sold to someone else which complicates things even more. Guess who the bank comes after?
I guess the moral of the story is to be careful who you do biz with and make sure they are solvent. Strange times.
Hopefully some of the experts here can explain this better than I did.
You made an excellent point, and I have actually done some research with that thinking in mind. A new one without the taxes and fees runs between $21,100 and $23,800 with the best going deals. That's one reason I feel that $16k is a good deal. When it comes to the search, I am pretty patient. Thanks.
Thanks GP! It's not a lot of fun, but I'll be better in the end
I am on 2.5 months since I made the leap of "Destiny" I am not sure of your situation but it is the best decision I ever made. What I am finding out is that it easy to get married or "buy a car".... than it is to get a divorce in the Commonwealth of Massachussetts.
You're absolutely correct. We had a few posts on this very topic a few weeks back. It could be possible that this particular dealer is undercutting everyone else because he plans to cut bait and run in another month or two. Talk about a disaster for a buyer with a trade. It does give you reason to pause. Thanks for reminding all of us about this possibility.
1. No vinyl roof 2. No gold hubcaps 3. No fancy hood ornament 4. No dice on rearview mirror 5. No cloth cover for steering wheel 6. No fur seat covers 7. No bumper stickers 8. No trailer hitch 9. No red bow on grill at Christmas 10. No boom box speakers 11. No sun visors over each door window 12. No front license plate with the dealer's name on it
Comments
GP
I would add that the car sales industry kind of set itself up for that wave with its "bazaar" sales model where price is set not before the customer shows up, but after we learn about all his/her buttons, weaknesses and pet peeves. Constant great whale hunt so to speak. Now that times did get so much harder, so it had to backfire with more people trying to take said advantage and revenge. Unfortunately sales guys have no choice, but weather it out - hopefully you won't try to take the revenge back, especially on those innocent, when it gets better
Just to be clear - this was just an outsider's observation, not a criticism. I would not make such an offer myself, as it's really counterproductive. I might take your bonus, or even holdback (only if you let me
2018 430i Gran Coupe
I'm thinking a lot of the gross getters won't be around when sales resume. I'm just not looking forward to having to deal with a gen x or gen y type on my next purchase. You know the type. Indifferent to whether sale is made or not. If the SM lets it go he gets another car payment, rent and pizza by the x-box.
We've come to expect agressive behavior from commissioned sales folks so this new breed might be a challenge to us boomer types.
Until then I'll use MSRP as my guide and offer half without waiting for them to tell me what they expect to get. By the way, we've had a housing bubble, an economic bubble...when are we going to get the car price bubble to burst?
I sure don't want to be wading through a bunch of 08, 09 and 10 models when I buy again in 2011. Move em out. Next!
2013 Mustang GT, 2001 GMC Yukon Denali
I am not sure what you're referring to as the car price bubble. I can't see thge current 5% to 10% profit margin as a bubble, or anything huge that's about to collapse. If there ever was a car bubble, then it burst with the onset of internet in the 90s.
Anyways I'm off on holidays, after finishing 2nd best month I ever had in the biz.
Talk to you all in a week!
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
You know the rules here. I can’t answer that question as it was asked, so let’s try this:
We all know buyers like to make their deals just like they researched them but there are times when a competing dealer jumps into the deal. Sometimes that competing dealer, trying to make a deal for himself, will end up knocking the deal out of the buyers reach and the buyer doesn’t have time to go back to his original plan. Now, by the accepted rules of Car Sales 101, this is still a live deal and if the buyer’s co-worker happens along and sees this deal, he is duty bound as a co-worker to not let the deal fall unaccepted. To do so would not set well with all the other guys at the office. Therefore, it’s perfectly legal for the co-worker to take this deal and everyone who watched this transaction take place knows that, while this deal was not intended for him, it is OK for him to take and if he drives it over the curb the entire office will be greatly rewarded for it.
Like I said, perfectly legal.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
2018 430i Gran Coupe
As Bluto would say.....
"Nothing is over until we decide it is! Was it over when the Germans bombed Pearl Harbor? Hell no! And it ain't over now. 'Cause when the goin' gets tough...
(thinks hard)........ the tough get goin'!"
Sometimes it's harder to let a sale walk, than it is to make the sale. In the case of your Altima people, I'll bet this isn't the last you'll hear from them. But, if not, you've lost nothing!
Richard
It's a shame that you had to spend so much time on that father/son deal. Don't worry. There are still other fish (baby seals) in the sea. Besides, some people don't recognize a good deal even when it hits them in the face.
Richard
Richard
Congrats on the sales, how long you been in the biz by the way... more than 2 months right?
Also, what's up with the "magi-poo" name in your profile. Is that some kind of Canadian thing or did you lose a bet?
Maybe it's a new brand of "mop n glo".
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Well it's a Canadian thing when you live in Canada these days...you have to escape the winter, and I don't know where this global warming is that Al Gore promised us.
So, here I am in Florida, less than an hour from the Superbowl...but I'll watch it on TV. As promised, I have my preliminary review of a Ford Fusion...just 100 miles so far, from Orlando (what have they done to that airport - what a mess, of course when I was there last 25 years ago it was one of my favorites).
Overall, great value, does everything well considering the price. Huge trunk, nice instrumentation, fairly comfortable seats, fairly solid feel, steering is ok. I prefer the Fusion to an Impala, Buick, Camry (too generic - though I am sure it will be more reliable and holds its value better), Civic (don't like that direct electronic steering). I do prefer the last Accord I drove more, though that was a few years ago. The Accord seemed more substantial, more solid, more feel in the steering.
There are some things that bothered me, the bulging hood doesn't give you a good sense of where the fenders are, the rear window is up high and so rear vision and rear side vision are cut off quite a bit, and the balance isn't quite right, the forward pillars are too far forward and cut off some forward vision. Most annoying was under the steering wheel the dash is low and I keep hitting my knee there - that hurts
For this price and class of car I think it is much better than cars I have owned in for this category. Would I trade in my 3 Series for it? Hope it won't ever come to that, but it might ifr the economy doesn't get better. The seating position, the egonomics, the performance, the solidness, the feel of the road, even the sightlines and view are superior in the BMW - it is designed right by engineers and designers who know what they are doing. If I could get a 3 Series for $30,000 in the USA compared to maybe $22000 for the Fusion (guessing at prices), I would really try to swing it. Over 5 years it would mean $1500 a year more, and on a lease maybe $100 more a month. I know it isn't easy but I feel I have made a better investment in a $30k bimmer, than kinda blowing 22k on a car that is just basic transportation
Lots of GMs down here Richard. Haven't seen black yet. White, lots of silver and grey, and an unmarked police cruiser in dark blue. There's a silver one outside next door and they do look good....lots of content there for a reasonable price.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Go to the dealer's website and check their new inventory. All GM dealers around here are online with an up-to-date inventory
2014 Malibu 2LT, 2015 Cruze 2LT,
A quick off topic thing then onto the car stuff.
I just found out yesterday than now Son #2 is going to the game along with his brother, 4 college buddies of theirs and my nephew. Yep, Steelers fans travel well. From what I’ve heard, they out number Cardinal fans down there 8/9 to one. Some things just ain’t fair.
Haven't seen black yet. White, lots of silver and grey
There must be an echo in here. That’s what I saw last week while on vacation visiting my brother in Delray Beach (now back in the Burgh. 22 F when we landed at 6 PM last night. Now I know I’m home).
If you find a black one you better just take it. Don’t ask any questions and don’t stutter or it’ll be gone and poor Richard will be disappointed once again. I’m not so sure he’ll be able to take another hit at his age.
Good luck with that hunt.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Don't stop him, he's on a roll.
I think thats the line.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I'm thinking it's already done so. Upside-down financing may be a thing of the past. Or perhaps not -- I'm sure the pros will let us know.
The notion that someone with crap credit could trade in a car with negative equity, only to do a deal that involved even more of the same, was news to me a few years ago. I was amazed back then, since I figured that the people who most needed to be careful with money (since they appeared to be stupid and/or ignorant) were being encouraged to be even more so.
Now it appears that a fair portion of the business depends (depended?) on such stupidity. Can the automobile industry survive on only the people who buy (can't lease so much any more) cars that they actually need and/or can afford?
Time will tell.
We have perpetuated a myth that "middle class" "deserves" a new Tahoe every three years (you know, to tow that boat and mother-in-law once a year) and a lot of people bought in. It's going to be very unpleasant to businesses (and customers) to learn it ain't so. Good in the long run - but very unpleasant in near term. Think drug detox and you get idea.
2018 430i Gran Coupe
Thank you GG!!! Good to see you too!
GP
Thank you Rich..... I will put the new pic up all good time, Maybe I'll even put a pic up of the new girlfriend also :shades:
GP
I have a truck I just purchased and owe about 12k on, I'm figuring the trade is about 18k. I'm going through a divorce and need to get some cash. My question is: can I trade the truck and, assuming the numbers above come through take 1 or 2 k out of the truck as a downpayment on a lease of an Accord or Civic and get a check for the balance?
thanks in advance!
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Let me know when you get down to about 150 pounds and I will drop by and slap you around a little !
2013 LX 570 2016 LS 460
In your case (new lease), I would do just that, as it doesn't pay off to lay money down on lease (other than security deposit, first payment and such - just no cap cost reduction). Why? Putting money down on the lease defeats one of its biggest benefit, i.e. transfer of the depreciation risk from you to the bank. As an example, If you put say three grand as cap cost reduction, you do reduce your payments, but if somebody rear-ends you next day and totals your car, the three grand is as good as gone. In case you did not put anything down, you don't owe anything to the lessor (bank) anyway, as GAP insurer (included in virtually all lease rates today) will take care on the difference.
In other words - benefit of lower monthly payments is not worth risk of losing the money altogether. Take the check for the full equity minus minimum fees/deposits required at lease inception. Put the money in your savings account and, if necessary supply your higher monthtly payments from that account. It's a better deal as long as your money factor rate isn't too high.
2018 430i Gran Coupe
Not sure if it's me or is it not explained correctly. Are you saying you think the truck is worth $18k but you still owe 12k? Then you want to use the difference for some cash and to help get your lease. Since I am not clear and it would be best for a car person to answer I'll limit my thoughts to the financial and emotional side which I do know about.
* Don't do anything too hasty right now, your judgement will not be good.
* Leasing might not be as good as it sounds for you. Then you are locked in and it isn't too easy to get out of, and you could lose big time.
*If you really need a few thousand immediately why not sell your truck and buy a cheaper used car. At least if things don't turn around you can sell the car again and get more cash. If you run out and lease you are basically on the hook for the full amount owing, unless you can sell the lease and pay a big penalty.
* If I have your solution down right I think you are digging yourself into a bigger hole that you might not be able to recover from. I think the fact you need a few $1000s and can't explain the situation clearly is really a bad sign. It is a terrible and very expensive way to try to get a few $1000 bucks.
I'll let the car guys explain it from their point of view........
Now, I did the car bit....I gotta tell you all, that game was awesome!
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Dino, your answer is the opposite of mine, so just to clarify. It sounds like you made your decisions based on cool logic and you weren't desperate for a few $ks.
If you are in pretty good financial shape and really want to trade in a car and do a lease I agree with you, no problem. If you are desperate to get a few $1000s to go through a divorce or pay for a lawyer I think it is asking for trouble.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
2018 430i Gran Coupe
2018 430i Gran Coupe
Trying to trade him some of the gold you made during your success for a few more years of life is bargaining.
I'd rather not sell the truck myself. I know I would get more, but I think it would take longer and I don't have much patience for looky-loo's. Not to sound like a car ad, but the truck is "practically new!" It's an 09 GMC Canyon crew cab SLE with only 1600 miles.
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Trying to trade him some of the gold you made during your success for a few more years of life is bargaining.
Which one is trading in your $18k truck to get $6k and lease a new vehicle - to have an extra $1 or $2k needed cash? :confuse:
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Richard
2018 430i Gran Coupe
Richard
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Well, guys. This new dealer is really after me to buy the '08 Grand Marquis with 10K miles. It was a rental held for 6 months. He has dropped the price from $16,870 to $15,972. I searched a 200 miles radius for prices on the exact same car. Ninety five percent of the dealers want between $17k and $19k. TMV is $17k on three web sites that I checked. This sounds like a really good deal. I'm getting really tempted. This GM is loaded and in pristine condition.
Richard
Richard, if you do go for it tell him 15 even and it's a done deal. If you do 10k miles a year that car will last at least 15 years...$1000 a year! It will be a great car and if you holiday in Florida you will fit right in. Just don't put a vinyl roof on it, I saw one today...sort of taupy color with a vinyl roof......makes it look like a giant turtle.
Good luck, you can't go wrong.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Pricewise - I would not be as attached to any TMV right now. For ballpark, I would find out how much current "employee plus-plus" price is (or something similar that is a real-life transaction value, not a sticker) on same config brand new '08/09 and subtract 15-25% off that, depending how aggressive you want to be in price search and how badly you need/want this car. Which means, if the same new would have cost you (not sticker, real price) about $20K including all dealer fees (but not including taxes), 16K is a good deal already. There is a point of diminishing return on your search - if you feel you reached it and you like the car, take it.
2018 430i Gran Coupe
But to bring this on topic, for those dealerships that are open on Sundays, did you guys see no traffic, only serious buyers, or people who hate football?
All I can say is good luck buddy!!!! For the record I am not talking about your vehicle. I would consult a lawyer on that issue. Theoretically it is possible to do that. I would shop a few dealers to see what you can get.
GP
ROFLMAO
GP
LOL
GP
A piece on local tv today was talking about how many have lost their shirts by trading in a car, etc. and then having the bad luck of having the dealer go broke before the dealer pays off their trade in. In some instances the trade in may have already been sold to someone else which complicates things even more. Guess who the bank comes after?
I guess the moral of the story is to be careful who you do biz with and make sure they are solvent. Strange times.
Hopefully some of the experts here can explain this better than I did.
2013 LX 570 2016 LS 460
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Richard
I am on 2.5 months since I made the leap of "Destiny"
I am not sure of your situation but it is the best decision I ever made. What I am finding out is that it easy to get married or "buy a car".... than it is to get a divorce in the Commonwealth of Massachussetts.
Once again best of luck
GP
Richard
1. No vinyl roof
2. No gold hubcaps
3. No fancy hood ornament
4. No dice on rearview mirror
5. No cloth cover for steering wheel
6. No fur seat covers
7. No bumper stickers
8. No trailer hitch
9. No red bow on grill at Christmas
10. No boom box speakers
11. No sun visors over each door window
12. No front license plate with the dealer's name on it
Did I cover all bases?
Richard