Announcement

Collapse
No announcement yet.

Needing some advice

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Needing some advice

    Okay,

    I am at my wits end and I need some advice. I have a car that is has $4500 in negative equity. By my research I notice I will be losing about $300 every 1k miles I put on the car. The car is very high mileage for the age.

    I have read many articles and there are options either to keep and try to pay until it evens out or to try to get rid of it. I pay more each month and it is still not helping.

    I found a car that has very low mileage and putting the negative equity down $4500 would put me ahead $1k but that is before the depreciation hits again in jan of 2013.


    Any thoughts????

    #2
    Welcome. I'll admit I'm a bit confused by your post. Can you give us actual numbers?

    How much is your current car worth? (kbb.com, private sale value)
    How much do you owe?
    How much is the new car you've identified?
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      Originally posted by Godsson314 View Post
      ...but that is before the depreciation hits again in jan of 2013.
      Depreciation is not an accounting miracle that makes your car drop in value after the year ends and only "hits" in January. It's a way to account for value that your car slowly loses over time. Depreciation is a constant process.

      The only way your car would drop from say $15,000 on Dec 31st, to $12,500 on Jan 1st -- is if you get in an accident.


      And I saw you said you were at your wits end, but only asked for general thoughts on your car situation. What's the main question you're trying to work out? What exactly would you like us to help you decide?

      Comment


        #4
        Originally posted by jpg7n16 View Post
        Depreciation is not an accounting miracle that makes your car drop in value after the year ends and only "hits" in January. It's a way to account for value that your car slowly loses over time. Depreciation is a constant process.
        I'm guessing that OP is being misguided by Kelly Blue Book estimates. If you look in a KBB you will notice that they run depreciation schedules on a quarterly basis. But, as you said, it isn't an exact science. It's just an estimate and a starting point for dealerships and auctions to start at. In the end, your car is worth what someone is willing to pay for it.

        OP, I agree with the others. We need more info. Waht type of car is it? Age, model, mileage?
        Brian

        Comment


          #5
          Gs314: Wonderful that you've learned a car is a depreciating asset. It loses value as soon as you drive it off the lot as it ages and mileage increases. Why did you buy your current car? What interest rate are you paying on the loan? Are you having difficulty making the payments? Have you tried to sell privately on CraigsList? What was the response?

          What problem do you want to fix?

          Comment


            #6
            I'm agree with everyone here. Can you provide some more information? Your first post is a bit confusing. In order to understand, what is your distinct question and what you are wanting to achieve by switching cars? Knowing your story and goals might help us help you.

            Comment

            Working...
            X