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Financing question

 
Old 09-15-2015, 05:26 PM
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Buying a preowned a7 trading in a car that I owe 10,000 on. Am I better off. Putting 10k down on new car or paying down current one before the deal and putting no money down. New car is 58k trade in value is 31k with 20 owed. Any advice is appreciated.
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Old 09-16-2015, 04:45 AM
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Originally Posted by phoneboy6 View Post
Buying a preowned a7 trading in a car that I owe 10,000 on. Am I better off. Putting 10k down on new car or paying down current one before the deal and putting no money down. New car is 58k trade in value is 31k with 20 owed. Any advice is appreciated.
Just my opinion, but money and interest rates are still pretty cheap right now. I always try to do deals with no or as little money down as possible. You can always pay off the loan early since there's usually no prepayment penalty.
Another thing I usually try to do is negotiate my wife's car deals and she does mine...it sort eliminates any emotion from the purchase. Don't be afraid to walk away (or appear to be ready to) from the deal. There's always another one. Good luck!
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Old 09-16-2015, 05:08 AM
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Originally Posted by phoneboy6 View Post
Buying a preowned a7 trading in a car that I owe 10,000 on. Am I better off. Putting 10k down on new car or paying down current one before the deal and putting no money down. New car is 58k trade in value is 31k with 20 owed. Any advice is appreciated.
If you are trading in the car - you will need to own it. You will need to pay the $10K you owe to own the car. The only other alternative is to finance the $10K you owe.
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Old 09-16-2015, 05:22 AM
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Originally Posted by phoneboy6 View Post
Buying a preowned a7 trading in a car that I owe 10,000 on. Am I better off. Putting 10k down on new car or paying down current one before the deal and putting no money down. New car is 58k trade in value is 31k with 20 owed. Any advice is appreciated.
I'm confused. You say you owe 10K but you say trade in value is 31K and you owe 20K. If that latter is correct then you have 11K equity to use as a down payment on your new car.
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Old 09-16-2015, 05:29 AM
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Originally Posted by phoneboy6 View Post
Buying a preowned a7 trading in a car that I owe 10,000 on. Am I better off. Putting 10k down on new car or paying down current one before the deal and putting no money down. New car is 58k trade in value is 31k with 20 owed. Any advice is appreciated.
Do you owe 10k as you say initially or 20k as you say later? Either way, it shouldn't matter if you put 10k down on the new car or pay down the loan on the trade - you will still end up financing the same NET balance assuming the dealer's going to take your trade and pay off whatever the oustanding balance it.
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Old 09-16-2015, 08:48 AM
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My mistake. I meant that the dealer will give 31k but I owe 10 on it still. Dealer will roll it into the loan
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Old 09-16-2015, 10:42 AM
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Originally Posted by phoneboy6 View Post
My mistake. I meant that the dealer will give 31k but I owe 10 on it still. Dealer will roll it into the loan
The dealer will arrange to pay off your loan. You have 21K equity to reduce your new loan too
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Old 09-17-2015, 07:19 AM
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I always negotiate every deal as if I will not put any money down. I look at the difference in payment verses down payment to see if it offsets enough to justify being out that cash.

Point in case. When I picked up my A7 I asked for payments with $0 down but told them I would entertain $3k and $5k down. The difference between $5k and $3k was only about $33 bucks. So over the 42 month lease that $33 added up to $1400 so it wasn't worth it to spend the extra $2k to save $1400.

They knocked A LOT off the car I bought and I ended up getting Audi Care, Dent & Ding, Windshield replacement, Clear Bra, Floor mats, and a few other things for a heavily discounted price.

Negotiate their car first, then discuss your trade. Ask for more money. Ask them to lower their price. Ask for a clear bra. Ask for dent and ding protection. Negotiate, negotiate, negotiate.

All they can say is no.
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Old 09-17-2015, 10:15 AM
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Thank you DSL_power. That was extremely helpful.
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Old 09-17-2015, 10:58 AM
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Good deal. Hope it works out for you.
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