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Started By
Message
trading in a vehicle
Posted on 1/23/14 at 9:34 am
Posted on 1/23/14 at 9:34 am
so I am trading in a 2 door wrangler for a 4 door, they have offered me 17K on it in writing. I owe 15,500. I am thinking about paying down extra 500 in principle in order to give myself extra equity to ensure that TT&L on my new vehicle will be covered. is this a good idea?
5
Posted on 1/23/14 at 9:38 am to chesty
You are coming out ahead on a trade?? This, in itself, is cause for celebration. 
Posted on 1/23/14 at 9:39 am to Coach Guidry
Chesty...putting the extra 500.00 wont make a huge difference. But, if its just extra money than it def. wont hurt. Should lower your note about $8
Posted on 1/23/14 at 9:42 am to chesty
What's the difference in paying the $500 to the loan or the TT&L? Should be the same, no?
Posted on 1/23/14 at 9:44 am to Brian Wilson
Its the same. Goes towards Bottom Line.
Posted on 1/23/14 at 9:45 am to Brian Wilson
well I already have the loan. it's pretty much going to be a payment to make sure that the TT&L and fees are covered. what ever is left over goes towards my down payment. I ordered a new Jeep and for a down payment all I am responsible for right now is about 2,250.
Posted on 1/23/14 at 9:45 am to chesty
quote:
I am thinking about paying down extra 500 in principle in order to give myself extra equity to ensure that TT&L on my new vehicle will be covered. is this a good idea?
I'm not really seeing how this will have much effect. You'd be getting like 9% of $500 by doing that. Is the extra $45 really making a difference?
Posted on 1/23/14 at 9:49 am to chesty
quote:
I am thinking about paying down extra 500 in principle in order to give myself extra equity to ensure that TT&L on my new vehicle will be covered. is this a good idea?
Why not just pay the $500 during the purchase
Seems like its the exact same thing and will save you the headache of having to wait for an updated payoff and the $500 to clear.
Posted on 1/23/14 at 10:07 am to LNCHBOX
quote:
I'm not really seeing how this will have much effect. You'd be getting like 9% of $500 by doing that. Is the extra $45 really making a difference?
The amount of loan payoff is not a factor in the sales tax calculation.
How long will it take for the new vehicle to come in, and what is the interest rate of the old loan?
Posted on 1/23/14 at 10:10 am to CubsFanBudMan
It's supposed to be here by mid to late february. old loan was 60 months at 3.5% as I bought used, new auto loan is 72 months at 3.4%
Posted on 1/23/14 at 10:17 am to chesty
quote:
It's supposed to be here by mid to late february. old loan was 60 months at 3.5% as I bought used, new auto loan is 72 months at 3.4%
So at best, by paying the $500 on the old loan today, you will save $1.45.
Posted on 1/23/14 at 10:26 am to CubsFanBudMan
New Vehicle cost 30,743
Deposit to order - 500
New Loan -28,000 (72 month 3.4%)
Left over balance 2,243 this will be my down payment
Trade in 16,700
Old pay off 15,500
equity towards TTL 1,200
by paying off another 500, it allows me to ensure that tt/l and fees are covered, with what ever is left over going towards downpayment.
* sorry I misquoted my trade in value earlier, I hadn't had any coffee yet.*
Deposit to order - 500
New Loan -28,000 (72 month 3.4%)
Left over balance 2,243 this will be my down payment
Trade in 16,700
Old pay off 15,500
equity towards TTL 1,200
by paying off another 500, it allows me to ensure that tt/l and fees are covered, with what ever is left over going towards downpayment.
* sorry I misquoted my trade in value earlier, I hadn't had any coffee yet.*
Posted on 1/23/14 at 10:30 am to chesty
It's all getting rolled in your loan regardless. This just seems pointless.
Posted on 1/23/14 at 10:30 am to chesty
Why did you choose a 72 month loan?
Posted on 1/23/14 at 10:40 am to chesty
New Vehicle cost 30,743
Trade-In Value (16,700)
Amount subject to sales tax: 14,043
9% Sales tax 1,264 (Plus 200 in other fees?) 1,464
Total Cost 32,207
Trade Equity (1,200)
Deposit (500)
New Loan (28,000)
Balance due at delivery: 2,507
If you pay the 500 towards the old loan now, you will be reducing the balance due at delivery to 2,006. Net out of pocket cash won't change much.
Trade-In Value (16,700)
Amount subject to sales tax: 14,043
9% Sales tax 1,264 (Plus 200 in other fees?) 1,464
Total Cost 32,207
Trade Equity (1,200)
Deposit (500)
New Loan (28,000)
Balance due at delivery: 2,507
If you pay the 500 towards the old loan now, you will be reducing the balance due at delivery to 2,006. Net out of pocket cash won't change much.
Posted on 1/23/14 at 10:48 am to chesty
Is this a decent price for the new jeep, or is it jacked up to cover the trade in value you are getting?
Posted on 1/23/14 at 10:57 am to EA6B
I'm actually about 300 under invoice right now price wise. It's a 4 door, so it's a pretty good deal I would think.
This post was edited on 1/23/14 at 11:03 am
Posted on 1/23/14 at 11:17 am to Will Cover
quote:
Why did you choose a 72 month loan?
Yeah, if you are going to ask that on the Money Board, you should know that a 72 month loan is not high on the smart financial decision meter.
Posted on 1/23/14 at 1:31 pm to anc
@3.4%.
I'd have no issue with a 72 monther at 0-1%.
But as already said over and over, it makes no difference whatsoever. Just keep the money and pay it at closing if it makes a difference to you. No point in putting into equity on the old jeep.
I'd have no issue with a 72 monther at 0-1%.
But as already said over and over, it makes no difference whatsoever. Just keep the money and pay it at closing if it makes a difference to you. No point in putting into equity on the old jeep.
Posted on 1/23/14 at 2:25 pm to LSUtigerME
What are you trading? I'm looking for a jeep.
This post was edited on 1/25/14 at 4:09 pm
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