Hey there, been reading here for a long time and just recently narrowed down what I wanna get as a new car: A P5!!

Anyways, heres my dilemma.

I've got a 2001 Cavalier that is being financed. I've paid 2 years off of a 5 year loan so far. I would like to trade in this car that I only half own and put it towards the P5. Now, would the Mazda dealership do that by paying off my loan and then giving me a loan on the new P5 that I want? Is this all just rediculous?

Just wondering if such a thing can be done or not cause I hate my car and want a P5 bad. I've testdriven it 3 times now, lol

Help!

 

Hello Tijuana, and Welcome to our happy little corner of the net, and to our Club. There are TWO BIG fridge'S in the corner with anything you can think of in them...help yourself...of course only take what you can LEGALLY have.

make yourself at home on one of the big fluffy couches, kick your shoes off, put your feet up on one of the tables, yes we are allowed to do that, mom don't care....and take it easy.

oh...btw....every once in a while a food fight breaks out...so you may not want to wear nice clothes here.

Welcome!!

Will they do what you described? they most certainly WILL....the big question is how much do you owe on the car? you can call your bank or whoever you have the load with and they can tell you what the PAY OFF is....NOW....all you have to do is go to the Mazda dealer and start dealing on your new car....IF they will give you at least what you owe on the car then that will cover the loan and then all you need to do is finance the new P-5.....BUT....if they WON'T give you enough to pay off the loan....they will STILL be happy to finance the loan on the new P-5 an just add the difference of what they have offered you for your car to the loan and STILL pay off the loan.....it just adds to what you have to finance is all.....this is of course if you qualify for a loan through them or anyone that they deal with...and I would believe that is you currently have a car loan and have good credit that will NOT be a problem. The thing to do is this....do some research on YOUR car...see what it is REALLY worth.....and go from there as to what you need to get for the car on a trade in...use some sites like Edmonds.com for example.....

Happy Shopping!! you will certianly LOVE the P-5

 

Thanks for the welcome!

I'm just shocked, I mean, I've been on a j-body site for like 2 years and noone would ever post a response as good as that and so fast.

Thanks alot for the info, time for me to work on getting my new car!

 

Welcome to the club, the best protege forum around .

I don't know the answer your questions, but I'm shure many of the members will be glad to help you out.

 

well considering you posted at 2 am....lol i guess its just your luck that there a few of us wacko's that work nightshift from time to time..... :{D and you are welcome....we are just one big happy family here. Glad to have you as a new part of it.

 

Ah yes, the wonders of interest on loans. A little primer. Loans have interest payments in general. The banks or whoever finances the loan get their money up front. That is, if you have a 5 year loan at 8.5% on a car that cost $22,500 your first monthly payment (I'm just throwing these numbers out from memory) of $453 might break down to $387 for interest and the rest paying down the $22,500.

Obviously, finance companies love for the consumer to trade in a car after two years, as the consumer has basically paid the interest off and not built up much in regards to equity. OTOH, they are able to stay up with the depreciation curve.

BTW, this is why you should go for a 15 year mortgage (mortgage translates literally as "death payment" - ie. pay up or else!) and never go 30 years. The people who set up 100 year government bonds (no longer done) were crooks plain and simple (difference in monthly payment between a 30 year loan on $100,000 vs. 100 year loan is around a $1 a month. Think about it.

 

if you *really* hate the car, you could trade it in and end up with a huge amount to finance through mazda. the rate's low at least.

i'd try to sell the car privately though. you'd get more money for it that way and end up less in debt to mazda.

either way though, it's digging a big hole. i'd love to dump my P5 for a mazdaspeed but i'd lose way too much on the deal.

 

okay T.J. welcome to our world....

here's some advice to your Disneyland ride (car shopping). I am
a salesman for a Dealership and i see your situation everyday...

what you need to do first is...find out your credit score (FICA) to see what you rate, the reason for that is if your a "fast lane" buyer (680 and up) credit score you will be able to roll over your negative equity on your current vehicle on to the new one...everybody has negative equity on their car not unless they put 1/2 down for a down payment or paid cash. then find out the rebates if the P5 has any as we speak, co'z if it does you can use that to cover some of your negative equity on your old car. if your a fast lane buyer you control your destiny at the dealership. go to Kelleybluebook.com find out your trade-in value of your vehicle most dealership will give you $2000 below that number, its called "re-condition fee" so you lost $2000 right away...the best time to go at a dealership is at the end of the month (30th, 31st) every dealership has to it a certain numbers of cars sold per month, those are the desperate times for them...and go in there with confidence don't buckle in the office ask for INVOICE price and stick to your monthly payment they will get to your payment by dropping the price, they try to sell you at high intrest rate at first (3 pts. higher) just so the dealership could make extra money of you....pardon my language "its okay to get screwed but don't get fucked"....

this is to everybody who is planning to buy a car in the future:

know your credit score
ask for lower intrest rates (if you credit allows it)
don't ever say you love the car
play hard to get, don't be a lay down...

make sure it all makes sense when your buying a car. I stress this to everybody "know your credit score" that will determine your intrest rate, your payment and how much they want to sell you the car.

680 and up (any bank will buy you)
650 - 680 (some banks will with slightly high intrest rate)
650 below (cross your fingers)
600 below (ask your mom)

i hope this will help you guys in the future, just don't come to my dealership i won't be able to make anything.

 

Using KBB to figure out values for anything, trade-in or retail, is a recipe to get hosed. I have found that kbb is typically already about $2000 less on trade-in than other guides (NADA, Edmunds, etc.). KBB is also way out of the park on retail values because they tell you the average ASKING price on dealer lots, not what the car actually sells for.

For example, when I traded in my 2001 CRV for my 2002 Miata LS (weird huh) kbb had a trade-in amount of about $15,000. I got $17,500 for it and paid invoice for the Miata. The dealer retail for my used CRV was over $21,000! I paid $20,820 for it brand new two years ago!

KBB is merely a tool that dealerships use to maximize profit. Buyers should avoid going by it plain and simple.