What do you think - Car Related

Danielle wants to get a new corolla S or LE. She has been trying to break her lease on her 2002 civic. Her dad and the sales agent had talked her into leasing for 48 months and now she wants a 4 door. Well breaking the lease and doing a smart buy on a new corolla is giving her an insane payment.

Yesterday we thought about trading in my Prizm, and I would take over the lease on her 2002 civic for the rest of the 15 month lease. She only has 21k miles on the car. It is a blue EX coupe. Much nicer than my car. I have 47k on my prizm, and I pay $135 a month. I have 3 years left on my loan. It is a 2001 and it is only worth around $5500. It is fully loaded, because it is the LSI model. Anyway, I owe around $4700 on the car still. If we trade my car, and pay off the loan we could use whatever money is left for the Down Payment on the Corolla, plus what ever money my wife was planning to put down to give her a better payment.

So do you think it is worth it for me to take the civic?? The reason she wants a 4 door is because she drives her nephews around a lot and it is hard to get them in and out of the car seats with a 2 door. If she doesnt get the corolla, she will get the Alti 2.5S.

Thanks...
Scott

Re: What do you think - Car Related

Tough call.

Since you are just about upside down on your payments on your Prizm, I suggest you do your best to pay that off right away. While the Prizm may be worth about 5500 on a private sale - no dealer will give you that much on a trade. The balance will be carried over onto the Corolla - so you will be in the same situation as you would be if you got out of your lease on the Civic - just slightly lower numbers.

I think you should hold off on the Corolla until either you pay off your Prizm or the lease is up on the Civic.

good luck.

Message edited 5/16/2005 10:19:20 AM.

Re: What do you think - Car Related

Sorry...I meant that the prizm is worth $5500 to a dealer. We went to Toyota in Amityville yesterday...and he gave me the value from the book. Privately I could get more for the car, but I would rather trade it in and have them pay it off. The other benefit of trading it in would be we would save tax on the new car.

Scott

Re: What do you think - Car Related

Have you gone to different dealerships as well? Look at a few Toyota's and see what they will give you vs what others will and see who will work with you more on the car. If you seem serious and you don't like the price they are giving you they will 99% come down even after they say there is no more room. There is always room to come down in price. Just a suggestion. If at any point you are rolling negative equity into the car (not saying you are but if some say you will) then I would just wait the year. Also why not try to wait a few months until the 06 come out and then you will get an even better deal on an 05. Just a thought, but Good Luck!

Re: What do you think - Car Related

Re: What do you think - Car Related

If you decide to privately sell the car, let me know how much you want for it.

Re: What do you think - Car Related

Yes we realize that they add the negative equity on to it. That is why we were going to trade my car in.

We gotta think about it a little. I just wanted to see what everyone else thought.

Scott

Re: What do you think - Car Related

I think you need to stick out the length of the lease and pay off your other car a little more aggressively. I think you are going to put yourself in a bad position with the new car personally. I know you are a saving for a house and all so I'd just accept it and concentrate on that instead of digging yourself deeper into car payments.
Unless you can really make some money on selling the prism and you'd come out ahead or at least even and it doesn't seem that way.