Upside Down on my loan!!

[hulkster]

Hello everyone. I had a quick inquiry looking for some feedback on my current situation. Recently my 2000 Solara engine began experiencing engine issues. I was told the engine needs replaced and it's under no warranty. This comes out to about 3000. The car blue books in condition/mileage at 3500 in Good Condition. The problem is that I still owe 5000 on it. The Toyota dealership told me they can offer 2500 for the car on trade and plus the two current promotions I'm eligible for on the 09 Yaris. Thus, my price on the Yaris something like 16435 - 2500 trade/rebate - 1900 promos - 2000 down + 5000 current loan. Considering my situation, is this a fair proposition from the dealer? I dont' know my credit score, but I'm assuming my credit is quite solid

[roxy1]

depends. $16435 sound like alot for a yaris. what model? what options? does that price include tax?

[hulkster]

16435 minus the deal the cost was 14535 and this is a 4 door sedan with the power package and most of the options. Minus the trade, and it went out at 12,000. It was my previous loan that hurt me no doubt.

[frownonfun]

i would take it... wish i had good credit

[1NZYaris1]

So toyota is settling the $5000. loan and putting it back on the Yaris right.
if not that is what you want them to do,

[yaris-me]

You're looking at $16,500 to $17,000 out the door. If the interest on financing is high, you can always refinance. I don't think you have a choice if the Solara need to be repaired.

[Kal-El]

$14,500 is a tremendous deal for a new Yaris with all the trimmings. My used '07 manual S with no power was that much and had 35K on it. Of course, it was in July when all new Yaris's were sold out due to $4/gal gas.

Go for it. This cash back promo won't last on the Yaris.

[firemachine69]

If they can finance that at 0.9%, it's worth it.

[firebob]

I have a 732 and my wife is a 718 and we only got 2.9% with $2,000 in cash and $5,000 off our check card.

I would have loved to get a .9% on a car. We were going to pay 100% on the way out the door but found out our bank will only let you charge 5,000 a day on there check cards even if you call them. It ended up costing me $600 for on a month long loan. I was stuck and had to be 600 miles down the road and ready to give a seminar or I would have gotten the bank to take care of it but it was 10 minutes after they closed.



I would call your car insurance company and find out if you can get “gap insurance”. You would be so far up a wall if something happens and they only pay $11,000 and your loan was for 20,000. I think gap insurance is based of the car, loan, and the blue book but do not know for sure.

I would ask what the interest rate and what it would be after all the loan stuff is added in. For some reason I’m thinking your going to hit 19 or 20,000 after the loan.

[Crandall]

Get a beater til you pay down the original amount you owe. Refinancing old debt is the worst mistake you can ever make.

[ChinoCharles]

Refinancing old debt is the worst mistake you can ever make.

I wouldn't go THAT far.

Your decision depends on what kind of interest rates you have on other debts. For example, if you have $3k on a credit card that has a 12% APR, refinance the debt from the Solara and put the money you'll net each month towards that card. Adapt to what you've got.

You also might not have much of a choice because you won't get $2500 for a Solara sans engine anywhere else.

[Crandall]

Originally Posted by ChinoCharles

I wouldn't go THAT far.

Sorry, Hedge Funds are.

[ka0sx]

they want to much money for the car. they are trying to rip you off

[YarisSedan]

Before anything i would take your solara out to a good mechanic for a second opinion. It seems like this was all planned out. Its kinda strange a year 2000 toyota would have a bad engine. I have seen poorly maintained toyotas that dont even have oil changes regularly with over 250k still running strong. And the fact that they are so willing to take it off your hands if its in that poor condition.

Dealers do a lot of not so honest thigns sometimes.. My friend who works at a dealer that will be unamed said they had a car that was run without oil and seized up. They took it as trade in. 4 Guys with a giant breaker bar on the crank freed up the engine and it ran. They put it back on the lot with a for sale sign.

[JBougie]

Originally Posted by Kal-El

$14,500 is a tremendous deal for a new Yaris with all the trimmings. My used '07 manual S with no power was that much and had 35K on it. Of course, it was in July when all new Yaris's were sold out due to $4/gal gas.

Go for it. This cash back promo won't last on the Yaris.

Are you serious? Dang -- I must have gotten a great deal ... my 07 with all the options right off the show room floor (0 miles hehe) was less than that (couple hundred dollars)


Hulkster....

My advice:
Get a 2nd opinion - NEVER just be OK with what the dealership is telling you. We all love our Toyotas, but a stealership is a stealership - never trust them lol

THEN if your car is really screwed - get the Yaris. It's better on gas, and more fun to drive (IMO). That's a good deal (again, IMO) and I would jump on it!

[nemelek]

Fixing the car and keeping it will cost you $8,000. There might be other items that need repair. Cutting the bait and trading in for a new yaris will cost $17,035 plus tax title increased insurance and other expences. It will most likely cost $19,000. If you buy the Yaris plan on keeping it for a long time. You will be upside down for years to come.

[tomato]

^ I was thinking the same thing. It looks a lot cheaper to fix your car and pay it off. But is the engine work the ONLY thing wrong with it, or is it the beginning of the end? a 9 year old car should have plenty of life left in it, but I would ask a mechanic anyway.

I think your first step should be to get a second opinion from a different mechanic to confirm the diagnosis and how much the repairs will cost. Then you'll be better equiped to make a decision. Never mind the dealer's offer, there is always another offer and another car. Just sit down and decide how you want to spend your money and what is a priority to you.

Personally, I prefer to drive a beater that's paid for than a new car I owe a lot of money on, too much debt makes me nervous.

Good luck with your decision