[ZTWsquared]

As you've no doubt noticed by now there are a lot of factors to consider ... but one that hasn't been mentioned so far is interest rates.

The current FMCC finance rate for Focus is 2.4% for 60 months. If your current loan is considerably lower than that (say 0%) I'd say do anything you can to keep that car until it's paid off.

If, on the other hand, the interest rate was considerably higher than 2.4 (say 5%) then it might actually be worth it to trade and refinance the difference at the lower rate.

Another factor to consider is the likely cost of maintaining your out of warranty '04 through to the end of the finance term.

There's nothing worse than being faced with an expensive repair on a vehicle you still owe money on ... except of course, being faced with an expensive repair on a vehicle you still owe money on that isn't worth what you owe.

My personal M.O. is to never lease or finance a vehicle beyond it's primary warranty period ... which means a shorter finance term or a longer warranty.

At the end of the day the thing that will best help you make the right decision is to be ultra-realistic about the value of your car - because a dealer will never give you more than what they could get your car for at a wholesale auction, and they always try to pay even less than that.

cornflakes,Aug 2 2007, 01:24 AM Wrote:I know i asked a similar question but this is a different question.


I am thinking about upgrading my 04 focus to an 07 focus.  My 04 focus was purchased on a 60 month financing plan.  So basically 36 months is all paid off for and there's still another 24 months to go in the payment plan.

My question is:  will i get more value out my car if i sell it privately (transfer over the payment plan to the new owner, so owner pays me current value + the remaing 24 months they need to pay to the dealership)

or

if i simply trade it in when i purchase a new 07 focus?
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