financing question...
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AudiWorld Super User
Joined: Jan 2004
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From: Boston MA
financing question...
this is my first car I've bought and first time financing. but this question has always been on my mind. I'm financing for 60 months, so my loan will be paid off in Aug 2009.
say when my 4 yrs / 50k is up and I want to get into another Audi or another car. I still owe a year's worth of payments, about 5-6k left. If I trade in my car, what happens with that 5-6k left? Do I have to pay it off all at once? Does that amount carry over to the new car in addition to what I'm loaning (assuming I'm using the same bank again)?
Thanks guys!
say when my 4 yrs / 50k is up and I want to get into another Audi or another car. I still owe a year's worth of payments, about 5-6k left. If I trade in my car, what happens with that 5-6k left? Do I have to pay it off all at once? Does that amount carry over to the new car in addition to what I'm loaning (assuming I'm using the same bank again)?
Thanks guys!
AudiWorld Expert
Joined: Jan 2002
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assuming you trade it in
you can carry the debt over to your next car (and the dealer would then pay off your current car), pay the debt off on your own, or you could just not trade the car in, sell privately, and hope to make up part or all of the difference...
New Member
Joined: Dec 2004
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Your car will most likely be worth more than you owe...
at 4 yrs/50K mi. For example, say a 2001 A4 1.8 T with 50K mi is worth about $9-11K in trade or $12-13K private party sale, so if you still owed $5-6K on your loan, you would have $3-6K equity (cash value) in your car if you trade it or sell it. This can be used for a down payment on your next car.
AudiWorld Super User
Joined: Aug 2002
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don't ever carry over the debt from this car to another car
that is the absolute most irresponsible financial maneuver that anyone can ever make, and why dealers allow this to happen is beyond me. A car is a depreciating asset, and being upside down on a car (having negative equity AKA owing more than the car is worth) is just a recipe for disaster.
You will always make more money selling the car on your own vice trading in or selling to carmax. If you sell on your own, you should have enough to pay off your loan.
You will always make more money selling the car on your own vice trading in or selling to carmax. If you sell on your own, you should have enough to pay off your loan.
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