awake

heres the deal.

im in a pretty badass negative equity situation in my 2003 330i ZHP.

roughly 10K off the average trade-in.

it seems in this economy, i cant get my car sold on the private tip, everybody must be copping civics and ford fusions.

so ive been wanting to trade this thing in for something newer and try to re-coup some of my neg. equity to boot.

so ive been looking for a good deal on a car that is holding some good value, but not selling....so dealers are making deals on them.

long story short. i found a 2006 IS350 with 46K....average options, silver on black...

for $20K.

i figure me and the dealer have a heart to heart, and i end up financing a total of $28-30K off top.

and maybe i wont be so far in the ****.



thoughts? am i in the right frame of mind? or wasting my time? what kind of trade in offers are you guys getting?

(note: im not thinking im going to buy another car, and drive down the street and trade it in and break even....i know im still going to be in the hole, just trying to help my situation out a little.)

thanks in advance.

ryan

kt22cliff

Financially, I don't see the upside. You are underwater for 10k already and after you "pay" 30k for a car that's worth 20k, you are still underwater for 10k for just stimulating the stealer's financing department with fees/commissions. That is "IF" you can find the financing. What bank is going to sign off on a deal like this in this economy unless you are putting up significant amount of cash as down payment? I think it's barely worth the trouble/fees if you can get a car and get out of the underwater situation.

PhilipMSPT

iTrader: (5)

Ryan, welcome to the Club!

If you're in the negative, it'll be difficult to get good financing. You're gonna get hit no matter what. And don't forget about taxes and fees and such.

However, if you're gonna be upside-down with any car, you might as well make it s Lexus.

If I were you, I'd pay off your Bimmer first...

LexFather

Every $1000 in neg equity is about $50 to your monthly payment.....Why are you looking to sell the BMW? ZHP is a very nice 330, maybe the best one around. The deal on the IS is insane, 20k? I've never seen so low for a 350.

IS-SV

Not a good deal IMHO.

awake

i guess the way i see it is, the is350 is "worth" around 28-30K on the retail end of the market.

so financing shouldnt be too much of an issue, cause they will look at the sale as if its being sold at retail value.

so essentially ill be paying retail for a car i could have gotten for wholesale.....in hopes that my neg. equity will be cut in half (on a good day)

kalvano

If you are going to roll in $10K negative, lease a new something. The worst cycle people get into is rolling negative into a purchase that they want out of again in a few years.

toy4two

I would learn to keep the BMW and drive it till the wheels fall off (or in a BMW's case until the warranty expries).

I never buy new cars for exactly this reason, just CPO or just off lease cars, I also stick to brands that you know will drive like new at 30,000 miles like Lexus.

kit cat

iTrader: (6)

330i ZHPs are awesome cars...have you driven an IS350? Completely different car IMO.

darkdream

you sure it has a clean title? 20k seems too low even for the mileage. I believe there was someone who posted a salvaged IS350 that was priced that much in the ISx50 section.

I8ABMR

If you are going to be upside down anyway and will probably be keeping the next one for a while you might as well go for it IF the dealer will eat some of the 10k

NAZTY97

...yeah, I'd say the same for me, but not $10k under book... but more like $4k says someone tryin' to get my car and sell for what I'm tryin ' to sell for. I think right now is just a bad time to sell, ....so i'd say wait and either pay it off, or keep it on the market until it sells.

oldcajun

Keep the BMW and pay off what you owe! There are no magic bullets in finance any more. Get out of debt before you even look at buying anything else.
Steve