Andoskyy

iTrader: (1)

MSRP $44,670 (Everything but ML and Cruise Control)

Trade in: 2001 Nissan Maxima: Trade in value of $7500 in good condition
Still Owed $8,700 on the maxima.

I put $6,000 down, with Lojack and full Ventureshield installed.

financed for $599 a month for 72 months @ 7.09% APR which would be a$35,000 loan.

so how i figured it, is $40,000 OTD.

$35,000 loan + $6,000 DP = $41,000 - $1,000 equity in maxima =$40,000 OTD, TTL, lojack and clear bra

how did i do? this is how i worked out the math, but i wanted to run it by all of you to make sure i didnt miss something and miss something stupid!!!

HKS350

iTrader: (4)

This looks pretty common.i`m a little mislead by the maxima??they paid what on it??never the less .good deal,Did you get gap ins?

Andoskyy

iTrader: (1)

The KBB trade in value was roughly $7,500, but I still owed $8,700. so basically they gave me an extra $1,200 and paid my maxima off in full.

yes, i got gap insurance. i cant honestly say that i know exactly what gap insurance is, but the dealer was a friend of mine and he said to do it!

glad it looks okay!

Thanks!

kickin8

iTrader: (1)

u might be able to get more $ if you sell it yourself....but u have to deal with the hassle of other ppl test driving (and joy riding!)


so the issue is, if you can sell it for the $ u owe, that washes off your debt....

G35TOIS350

you talking about the automatic distance cruise cause i though cruise control was std on the IS......

HKS350

iTrader: (4)

good friend.gap covers the diff between amount owed and the value of the car.this is most important with new cars.

PNice972

iTrader: (6)

he is most likely talking about the guided cruise

kickin8

iTrader: (1)

how does that work and how much would it cost?

G35TOIS350

figured but ya never know

tcho82

iTrader: (1)

Gap insurance only works when you total your car, someway or another. It doesn't cover when you sell it and own more than its worth.

Say your car is worth $10000, and you owe $15,000. If you had gap insurance and totaled the car. Your auto insurance company will probably write you a check for $10000. But since you still owe $5000 more, you'd have to pay that out of pocket, or if you had gap coverage, the $5000 would be paid out by that, thus you would owe nothing.

Gap coverage usually is not very expensive and can usually be bought at the time of sale or afterwards from your lending institution.

This is most important to have on fast depreciating cars, and or cars in which you go IN with negative equity. You owe 15K on a car, trade it in for 10K, roll the 5K into your new loan on your new car, $30K car is worth $30K when you buy it, but now your loan is $35K.

pisaykotik

For those curious about the cost, as a reference, my credit union charges $200 for gap insurance and can be bought within a year of the purchase.

Smoky350

iTrader: (6)

In NY gap insurance is $75. Some banks offer it for free, and some banks don't offer gap insurance at all. Gap insurance works when you total your car or the car gets stolen.

I think that you're getting a good deal on your car. Since you're trading your car you only pay tax on what you pay for the new car minus the trade in value so you save yourself a little tax. Also make sure that your contract will show that you are financing $35,000 because some dealers add the down payment on top of the selling price and then they have huge proffit. Good luck with your new car.

cmusic

I look at how much you will have paid in on the car at the end of the loan:

$599 x 72 months = $43,128

plus the $6000 down payment = $49,128 paid on the new car

So in 6 years, assuming you still have the car, you will have over $49,000 invested in a 6 year old car that was only stickered for $44,000 when new. And in 6 years the car's value will probably be in the $12-15,000 range at best.

Don't feel too bad, when trading in a car you still own money on, you will always get taken.

gsrthomas

iTrader: (1)

I didn't get gap insurance.

I think gap insurance is good when you put <$5000 down on a new car. I put $16k down and my loan is only $15k. So I think im good.

Andoskyy

iTrader: (1)

thanks for all your input here. I know in terms of buying a car 100% the right way...this was not it...but the way i look at it, all i have to do is pay $599 a month and i'm driving a friggin lexus!!!

hahaha, even if you guys told me i got hosed, i'd still be pumped to get the car.

I was pretty conservative in regards to my monthly payment budget, i'm in software sales, and i figured my living expenses on my base salary only, and still have money left over to save. Then i figured for the first year, i'd throw a part of my quarterly commissions at it and refinance in december. I'd like to get my payments down to a few hundred dollars. My goal is to throw an additional 15,000 at the loan in december and refinance. save myslelf a lot of interest as well!

cant wait to start posting about the actual car...not the dream of it 2 days left!!!