Car trade-in question

[Rajah]

The transmission (or something) just went out on DH's car, and we have a question now and are considering our options.

If the repairs on the car are too expensive, (ie: above $1500-$2000) doesn't it usually make more sense to trade it in on a new (used) car instead? Or does it really depend on the car?

This is just a 3 year old Camaro that *shouldn't* have had this problem. My guess is when DH ran over the curb a few weeks back to avoid two idiots who were racing down the wrong side of the street, that he probably did some damage that wasn't evident until now. Whatever the case, the repairs could be fairly costly (we're still waiting to find out for sure) and we've been considering trading in the Camaro for something less expensive anyway.

But here's the question...

DH still owes on the Camaro. If the car were in good working condition and didn't require these repairs, he would owe exactly what the bluebook puts as the car's value.

What do you do as a trade-in in that situation? *Can* you trade in in that situation? How does that work?

At the moment, the car is not drivable at all. Which is why he thinks it's the transmission. As in the car won't accelerate more than 3mph, and won't go into reverse at all. :/

Any suggestions?

 

[aimee11621]

You will be up side down on your TRADE meaning you owe more for the car than the car is worth.


They will simply tack on the difference in your deal wether you see it or not. You got to make up for the bad business deal you made on the original purchase (car).

They will make it look like they are helping you when in essence they are just doing another deal. The difference maybe in the price of the new car and in financing terms. Mind you they will NOT LOOSE! and you will pay for both cars!

Edited to add:

Is the car fixable? Maybe you should get an estimate and try to fix it. Then sell it for at least the loan amount. That way you aren't carrying the old loan amount in your new deal!

 

[DrCavin]

I don't want to sound negative, but your not going to get much on trade for a vehicle that is not drivable.

If it was damaged by hitting the curb, could you put a claim into your insurance, as it was caused by an accident, well trying to avoid an accident???

Good luck & hope things work out for you....

 

[The Mystery Machine]

Bottom line is you have to spend the money to fix it. Sorry....

If you trade in a broken car then they will give you next to nothing.
If you trade it in after fixing you will still take a loss.
If you trade it in even if it was in pristine, 100% condition you would have still taken then loss.

Now you could fix it then sell it outright. But then if you fix it why get rid of it, right? But if you are interested in dumping the car it then this might be the best way to go.

 

[vettechick99]

You will get screwed on a trade in for sure. It's only 3 years old...you should get it fixed and then plan to sell it yourself if you want out.

I sold my Tahoe on ebay and it worked out great. I also bought my next car on autotrader. By doing this, I easily saved myself about $6,000.

 

[Rajah]

Fixable -- most likely. We're still waiting back to hear what the damage actually is. Could be anything from a busted hose to needing an entirely new transmission. Don't know yet. DH is assuming the worst, I'm thinking it'll be moderate and not the *worst*. The question is, would it be better to pay out $2000+ (which would have to go on credit card) to fix it, or better to roll over the loss onto a used car loan since DH was considering trading anyway.

As for the accident causing it -- no idea. That's my *guess* as to what happened. And just mine. DH disagrees since there was no sign of damage other than to the tire when he had to run over the curb, and when he had the tire replaced, he did have the shop check over the car. I don't know how in-depth their check was. And DH does have a point that the accident was a few weeks ago and this just now happened. My thought is if it was a hairline fracture that happened with the accident, then it *could* have gone until now before the remainder of the problem happened. Especially since we had the coldest night so far this year last night.

 

[The Mystery Machine]

The question is, would it be better to pay out $2000+ (which would have to go on credit card) to fix it, or better to roll over the loss onto a used car loan since DH was considering trading anyway.

Not if you are doing a trade.

 

[Rajah]

In which way do you mean?

It wouldn't be better to fix it if we were going to trade, it wouldn't be better to trade it...?


----

Wait, just saw your other post, never mind.

 

[vettechick99]

Originally posted by Rajah
The question is, would it be better to pay out $2000+ (which would have to go on credit card) to fix it, or better to roll over the loss onto a used car loan since DH was considering trading anyway.

NO NO NO! You are upside down now and if you rollover that negative equity into a NEW car loan, it's just going to get worse. Now all of a sudden you're paying extra principal and interest on top of a used car payment. I promise its a bad idea.

Pay for the repairs on a low-interest credit card. Get the camaro in good working shape and if you want out, sell it yourself. Just to give you an idea on what I dealt with:

I owed $18K on my truck (that included two other cars negative equity courtesy of my ex-husband.)
Carmax offered $12K
BB was $15K
Sold it on ebay for $16K

Paid off the $2K so I'm free and clear on that old truck. Do not roll it over. You will never catch up and paying double for a used car is not fun.

 

[Rajah]

Thanks everyone!

 

[Miss Jasmine]

First find out WHAT is really wrong with the car. You are just guessing right now. When you take it in, ask HOW the damage could have occurred. This could really fall under comprehensive, even if there weren't the two idiots he was avoiding.

 

[Crankyshank]

Before you decide anything, you need to find out what the problem is and how much it will cost to fix it. Ask your mechanic what he thinks caused the damage. Your DH would have had to go flying onto and off of the curb to completely hose the transmission.

If the problem was not caused by the curb driving, then check with your dealer. a 3yr old car should still have manufacturer warranty on it. If he did damage it by avoiding the cars, have him go and fill out a police report and report it to your insurance company.

You absolutely do not want to trade in a broken car you still owe money on and roll it on to another car loan. Trust me on this- I know from first hand experience. No matter how good they make the deal sound, you will get screwed.