I wonder if the KBB is $5k for one in good condition and no mechanical issues, or is it higher but his is worth $5k? Because if the value for one in good condition is $5k, he's not getting that much for his. Dealers generally frown upon your trade in being brought in on a tow truck. And it will be hard to hide any issues if the dashboard is lit up like a Christmas tree with warning lights.
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Wife and I have bad credit but need a car. Old car can break at any moment.
- Thread starter atourlimit111
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I wonder if the KBB is $5k for one in good condition and no mechanical issues, or is it higher but his is worth $5k? Because if the value for one in good condition is $5k, he's not getting that much for his. Dealers generally frown upon your trade in being brought in on a tow truck. And it will be hard to hide any issues if the dashboard is lit up like a Christmas tree with warning lights.
You've just made both of my points - there's no way the value of that car went from $20k to $5k in only two or three years, unless it's been wrecked. (Suppose he did buy it three years ago - that means it was already 3-4 years old, where almost all of the depreciation would have already taken place. It certainly didn't take place in the latter 2-3 years.) And I don't imagine that in 2011 a 3-year-old Tribute was worth $20k anyway.
As the previous poster said, you are already upside down in your loan. Financing another car will only add to the outstanding loan balance. That means higher payments.
If you are already struggling, and it sounds like you are, the last thing you should be doing, is looking at financing another car. What you should do, is get the transmission fixed, work on getting out of debt and establishing good credit, and driving your vehicle until it dies. If you don't, you could end up in a terrible financial nightmare that has consequences you haven't taken the time to consider.
The fact that the car guy was encouraging your behavior should be a big red flag to stop what you are doing. He doesn't care about you and your situation. He cares about getting you to sign on the dotted line, so that he can get his commission.
If you are already struggling, and it sounds like you are, the last thing you should be doing, is looking at financing another car. What you should do, is get the transmission fixed, work on getting out of debt and establishing good credit, and driving your vehicle until it dies. If you don't, you could end up in a terrible financial nightmare that has consequences you haven't taken the time to consider.
The fact that the car guy was encouraging your behavior should be a big red flag to stop what you are doing. He doesn't care about you and your situation. He cares about getting you to sign on the dotted line, so that he can get his commission.
Bingo. The salesman doesn't care if you can't afford the payments, he gets the commission either way. Once it's financed, it's between you and the bank. The dealer doesn't lose anything if you can't pay and the bank has to repo the car.
If anything, it would give them the opportunity to buy it back at auction for less than you paid for it and sell it to the next sucker who walks in the door for what they sold it to you for.
It looks like everyone has given sound advice. I'd say the points below are worth checking.
I'd certainly fix the car and pay off any other debts before buying new debts to get a new car. The other options is public transport if that's feasible where you live, as selling the car and then relying on public transport would probably save money in the long run. Don't forgot to check your rights regarding any warranties - if the car was never fixed by the repairs, then you probably have rights to get it done properly. Again, depends on the State you're in.
- check your credit rating online. Many have free trial periods which you can check any errors on your credit ratings or problems you had forgotten about.
- pay off your larger debts first, trying to pump as much money into those debts to clear them. It'll require some cutting back but every little helps.
I'd certainly fix the car and pay off any other debts before buying new debts to get a new car. The other options is public transport if that's feasible where you live, as selling the car and then relying on public transport would probably save money in the long run. Don't forgot to check your rights regarding any warranties - if the car was never fixed by the repairs, then you probably have rights to get it done properly. Again, depends on the State you're in.
You can get a free credit report annually from each of the three providers. I get one every 4 months.
https://www.annualcreditreport.com/index.action
