My B/F convinced to buy a BMW 330 a couple of months ago and I hate it. I want a simple car like a Toyota or a Honda. Can I do that? Will my credit look bad or are there any cons to trading down?
ps.
I still owe 550 a month for the next 5 years
2007-03-21 16:52:42 · 6 answers · asked by Blanca V 1 in Cars & Transportation ➔ Buying & Selling
It doesn't matter the monthly payments you owe, it matters the sum total you owe. If you sell it, you have to pay all of that off somehow. Presumably you'll get most of that money from selling the BMW. How much do you owe vs. how much can you get for it?
If you're "underwater" (owe more than you can get for the car) then you have to figure out how to cover that difference.
You'd make the most money off your BMW selling it privately. The dealer would pay a lot less for it, but if you're underwater, they can fold the money owed into the financing on your next car. But then you'll be REALLY REALLY underwater on that car, which is a bad situation to be in! At least the payments will be lower, or the term (5 years) will be shorter. I recommend making the term shorter, 5 years is an awfully long time.
As long as you keep your word, follow through on your promises and pay when you say you would, none of this will hurt your credit report. Actually it'll help your credit report. Glad you're thinking about that.
Listen, your boyfriend loves the car so much, how about he buys it off of you? In a way that he "takes over the payments". Do all this legit, with the finance company's approval. So it's HIS car (in every way) and he can make the payments and you're even steven!
2007-03-21 18:07:27 · answer #1 · answered by Wolf Harper 6 · 0⤊ 0⤋
I work for the Internet Department at Honda store.
Good News: You can always trade out of any car. It will not affect your credit at all. Whether you go from a 300 payment to 900 or 800 to 200 it will not hurt your credit.
Bad News: All cars lose value very quickly the first 12 months of owning it. New cars lose more value than used, called "depreciating". You have to find out how much you owe on your loan and then how much your car is worth. If you owe 30,000 to the bank but the car is worth 23,000 you have "negative equity" which means you owe more than the car is worth. You can still trade that car in, but the "negative equity" will be added to your next car loan. Then it will be nearly impossible to trade out of your car.
Your solution/choices: Keep the car for 2/3 years.
OR
Trade out of it but lease a Honda or Toyota. Do a 36 month lease, which will keep your payments down and be able to absorb the negative equity your BMW has created. This way in 3 years you will not have any negative equity and will be able to start fresh. Because if you trade your BMW now and "buy" another car, you will be stuck in that next for for the next 5 years minimum. Your payment would be 330 on a Honda and then 200 for the negative equity which gives you a payment of 530. You can email me and I can explain all this to you. A lease is your best option to start fresh. More options and protection in a lease.
Slavenko_Drincic@yahoo.com is my email address.
2007-03-22 03:41:41 · answer #2 · answered by SportsTypeOfGuy 1 · 0⤊ 0⤋
Looks like you're not in a good position right now. Although it's kind of "downgrading" then you're going to have a tough time doing that. If you're leasing you car you're most likely going to be told that you're going to have a "flip-flop" trade-in, where the value of the car is lower than how much you owe on it. Looking on how long you have on your contract, and you're monthly payments, it looks like you are still going to have a tough time getting out of that. Go to your local Toyota dealer and see what they can work out for you. They're more likely than willing to help you work out what you want.
2007-03-22 02:16:19 · answer #3 · answered by davidsnoodles 5 · 0⤊ 0⤋
i own a shop,and a lot of people have traded down before,just find a dealer that will pay off your current car,and then trade, a lot of them will do this,especially if you have a real nice car,so this shouldn't really affect your present credit situation at all as long as the loan is payed off,i really don't blame you, i wouldn't want to be in that deep either,but i think you can do this without too many problems ,good luck i hope this helps.
2007-03-22 00:04:52 · answer #4 · answered by dodge man 7 · 0⤊ 0⤋
Yah sure you can, you probably have to sell your BMW at a loss, since it probably lost alot of value right away. Then you can go buy a new Toyota.
2007-03-22 00:00:14 · answer #5 · answered by onewhosubmits 6 · 0⤊ 0⤋
I WOULD U WOULDNT HAVE TO PAY OUT THE *** LIKE U WOULD 4 THE BMW TOYOTA R REALLY GOOD CARS IN THE LONG RUN PLUS THERE THE TOP SELLING CARS IN AMERICA AND IF SOMETHING GOES WRONG WITH IT THERE CHEAP TO FIX THERE REALLY DEPENDABLE
2007-03-21 23:59:37 · answer #6 · answered by riverrat159 1 · 0⤊ 0⤋