Quote:
Originally posted by Zeke
Mike, you said it all when you stated that the Xterra is worth less than what you owe. I fyou trade it in you won't get what you could sell it for privately and they will roll the balance into the new car. That's just bad business. You can use LeeH's example and add in the negative.
This probably is not a good time for you to trade cars even if your payment is a little high. If you are in the latter period of the financing, your principal vs. interest is getting favorable, meaning you are building equity faster, even though a car is a negative investment.
I wouldn't put too much faith in KBB. It's a racket and the real BB is still a subsciption only device. I think it's the Gold book, or something that you find in the sales manager's desk. The BB has just become a TV Guide.
My advice would be to hold off, pay the Xterra down since your payments are not as interest top heavy and take another look in 2006. The wife can't have everything, going green right now is gonna cost you too much green.
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Thanks Milt - I never intended to let the dealer pay it off and put negative equity into my new financing. In that event - which I expected I would just pay it out of pocket.
Clearly this is a bad idea and I should just keep the damn thing (which I don't terribly mind as I like it).