Purchasing question

[historyteacher]

Everyone here is good with dispensing advice, so I thought I'd give my question a shot.
I was going to wait to purchase my new car (most likely a 4Runner) until the start of next year, but I'm hoping to push it up to the end of summer or early fall. I owe $4200 on my current car (2006 Subaru Impreza Outback Sport) and KBB shows the value as around $9000. I was going to put $4000 down on top of what I get for the car, so I was wondering if I should go ahead and pay off the car before taking it in or should I just do a trade without paying it off. What would be the positives and negatives either way?
Any advice is much appreciated.

 

[SeattleMike]

Everyone here is good with dispensing advice, so I thought I'd give my question a shot.
I was going to wait to purchase my new car (most likely a 4Runner) until the start of next year, but I'm hoping to push it up to the end of summer or early fall. I owe $4200 on my current car (2006 Subaru Impreza Outback Sport) and KBB shows the value as around $9000. I was going to put $4000 down on top of what I get for the car, so I was wondering if I should go ahead and pay off the car before taking it in or should I just do a trade without paying it off. What would be the positives and negatives either way?
Any advice is much appreciated.

Save up and pay cash. Debt kills.

 

[4GLimited]

No difference other than paying it off now will save you interest to carry that loan through the summer.

If you can afford to, I'd pay it off.

 

[historyteacher]

That's about what I figured, I'm just getting antsy, so I thought I'd ask. I just have to tell myself that the longer I wait the more any bugs will get worked out.
Thanks.

 

[fxoffroad]

Depending on your negotiation skills, I think paying off and selling your Subie outright has a significant benefit over trading it in. Simply because the trade adds another dimension/element to your next vehicle purchase. You'd be able to focus solely on getting the best price for the vehicle you want to purchase, rather than get the best price for the trade and the purchase.

Another element... is being able to be patient until someone does purchase your vehicle, as difficult as it may be wait.

 

[rzldzlman]

I agree with paying it off. Dealers always ask you if you have a trade in before selling you a car because they like to negotiate that way. They get to fudge the numbers in their favor and may give you less than the Subie is worth. Pay it off and negotiate for the new 4runner more on your terms. My advice..Since you're not in a rush....Decide which model 4runner you want, convince yourself you want it and start visiting dealerships. If you're willing to take a vehicle in stock and you visit a dealership near closing time, you'll get the best deal.

 

[nashman69g]

I'll tell you I'm very antsy to get my new 5th gen...I'm just having to be patient and wait till I can get the deal I'm looking for. I'm getting closer as months go by and the availability goes up!

 

[historyteacher]

So are ya'll suggesting selling the OB privately or through the dealer? I know I'll get less from the dealer, but I'd already factored that into it.
When the time comes, I'll put some feelers out to see if anyone bites, but I was just planning on taking it to the dealer.

 

[nashman69g]

we say sell it privately...do some searching online, craiglist, ebay, etc, and see what others like your are going for. Then list it at a good price. kbb and nada can be a good start. If we could have a little info about the car, milage, color, options, condition, we could probably help you price it out for a good market value.

 

[TTown]

You mentioned KBB has a value of $9000. Is that the trade in value or private party? What condition did you list the car in? Is your car a low mileage car? To get a better idea of what your car is worth to a dealer put in average miles if you have a low mileage car (dealers don't add for low miles) and put in fair condition. This gives you a good idea for the actual value a dealer will pay. If you car has been in a wreck, lower it even more.

On the plus side, some states only charge sales tax on the difference of the new car and your trade in. Something to consider before selling on your own. If you have a car in really good condition with low miles, I would definitely sell it on your own. If it is average to below average then consider trading in. The only way to move a car like that in today's economy is to make the price attractive. Sometimes the extra few bucks isn't worth the time and hassle.

If you do trade, negotiate the new car first, then the trade. Let them know you will be financing the vehicle. Shop for interest rates before you enter the dealership, then see if they can beat the rate you have.

As far as paying it off before you sell it, it doesn't matter one way or the other. Like stated above paying off now will save you some interest.

Sorry for the long winded answer, but I used to be in the business, and like to see others get a good deal!

 

[TTown]

I'll tell you I'm very antsy to get my new 5th gen...I'm just having to be patient and wait till I can get the deal I'm looking for. I'm getting closer as months go by and the availability goes up!

Out of curiosity, what kind of deal are you waiting for?

 

[nashman69g]

Out of curiosity, what kind of deal are you waiting for?

a 4X4 limited w/3rd row+nav for less than invoice...I've received some offers already than were 500 under. But that's not quite good enough for me (yes I know). I'm not being greedy; i just don't want to pay that much for a vehicle that in 6-12 mnth will be worth 5-8k less. There is, however, the side of me that wants to just go get it. Anywho, not trying to highjack this thread...

 

[lightning1]

Best negotiation time

End of the Month - salesmen/women and sales managers are trying to meet quota's
Close to the End of the day - Tuesday and Wednesday

Don't go on a Saturday or Sunday or a Holiday?

Sell your car outright. I was lucky as I did get a reasonably good deal on my trade, but I was in more of a time crunch than you are....

Don't be afraid to walk out if you don't get a reasonably good deal!!!

 

[TTown]

Nashman, if they haven't already stopped making the 4Runner, they will soon be stopping it to prepare for the 2011 model. Once they stop making the 2010s then you will see the availability dwindle. Sure you may get a better deal than 500 below, but it may be harder to find the color and options you want. I say if you find the color and options you want, and someone offers 500 below, try to get a couple hundred off and be done. Once the 2011s come out, then you won't be able to get as good a discount.

At this point in the year I personally would hold off until the 2011s come out. Yeah, you won't get as big of a discount, but your car won't take as big of a hit in depreciation. Just think your car will already be one model year old by September. There is no wrong or right time to buy though, just different philosophies. As long as you feel you got a good deal, then you made the right decision!

 

[nashman69g]

Nashman, if they haven't already stopped making the 4Runner, they will soon be stopping it to prepare for the 2011 model. Once they stop making the 2010s then you will see the availability dwindle. Sure you may get a better deal than 500 below, but it may be harder to find the color and options you want. I say if you find the color and options you want, and someone offers 500 below, try to get a couple hundred off and be done. Once the 2011s come out, then you won't be able to get as good a discount.

At this point in the year I personally would hold off until the 2011s come out. Yeah, you won't get as big of a discount, but your car won't take as big of a hit in depreciation. Just think your car will already be one model year old by September. There is no wrong or right time to buy though, just different philosophies. As long as you feel you got a good deal, then you made the right decision!

I may (or not) try to take a gamble and hope to get my options and color choice. The depreciation because of age isn't what I'm worried about it's the $$ being dished out that is lost after the first year. If it was this time in 2011, I'd be looking at the 2010 inventory. As you can tell from my sig, I've owned lots of vehicles in my 12 yrs of driving experience--all being used old vehicles. I just feel shafted when I shell out $40k and the next year i could have bought the car for 35k. I really want to get it. It's just every time I think 40k I cringe. I not saying I can't afford a 40k vehicle, it's just spending that on a vehicle. It's a nice vehicle with the ability, design, and options I want. I guess it's just what a vehicle of this caliber cost these days. I dislike the front interior design of the 4th gen. The 5th gen is what made me decide to go out and get a new vehicle. Nothing in a 5yr period is of appeal to me. I've always loved the design and ability of the 4runner. That's why I'm settled on getting one. I do plan to keep it until the wheels fall off--hopefully those wheel studs hold:lmao:. If I'm going to keep a vehicle for this long I'm going to get the options and color I want. I've done enough research on finding my right vehicle to write a thesis. I guess I just need to feel better about spending this much $$$. I will get a 5th gen before the end of the year though. Maybe I just need to get over it and just pull the trigger and see what owning a new vehicle is like:biggrin2:.

 

[tumbler180]

totally agree with paying it off and selling it yourself. i sold my old car on craigslist (2000 nissan pathfinder) for about $2k more than the dealer wouldve give me on trade, within about 15 minutes (seriously, it was crazy). since youre not in a rush, id toss it up on craigslist at a "reach" price and wait for someone to bite.

 

[historyteacher]

It is a green/grey 2006 Subaru Impreza Outback Sport Special Edition, 5sp MT, multi disc changer, cruise, dual airbags, rear spoiler, power windows and locks. It's right around 45k miles. I have it listed in Good condition, but there are a couple of cosmetic issues: scrape on front spoiler (driver's side corner) and small grooves out of rear driver's side bumper from some idiot that took a turn too tight coming out of a parking spot.
KBB trade in is $10,325, private party is $12,275.

Looks like this:
http://file.kelleybluebookimages.co...subaru-impreza-frontside_xtsuimpoutwag061.jpg

we say sell it privately...do some searching online, craiglist, ebay, etc, and see what others like your are going for. Then list it at a good price. kbb and nada can be a good start. If we could have a little info about the car, milage, color, options, condition, we could probably help you price it out for a good market value.

 

[nashman69g]

start a craigslist ad. Take some good photo's and use photobucket to post the pictures on craiglist (not the crappy default image on craigslist--too small). List some info about the car--be concise! I say list it for $12000. Leave your contact info. Beware of scammers--real people will call you most of the time. Go get a beer. In a day or so you should get some phone calls. Then take your money pay the car off and put the rest on your new 4runner.

 

[fxoffroad]

...I just feel shafted when I shell out $40k and the next year i could have bought the car for 35k...

Regardless of when you purchase, there's always going to be someone who got the same vehicle for less. It's the nature of owning something that depreciates in value.

I've done enough research on finding my right vehicle to write a thesis.

This sounds just like me... I think I drove friends crazy with all the research I did. But in the end, I'm extremely happy w/ my purchase.

KBB trade in is $10,325, private party is $12,275.

I'm sure you've thought of this... you could just list your Subie now and when/if it sells, payoff the balance of your loan at that time. Worth the effort putting it on Craigslist.

Good luck, and again, if you want to keep the most $$$ in your pocket - be patient.

 

[historyteacher]

I'm sure you've thought of this... you could just list your Subie now and when/if it sells, payoff the balance of your loan at that time. Worth the effort putting it on Craigslist.

Good luck, and again, if you want to keep the most $$$ in your pocket - be patient.

This is more or less what I was getting at with my original question. I guess there isn't really a drawback to doing it this way. As a teacher, getting it during the summer may be better just in case I sell my car, but can't get the 4Runner right away.