[ZTWsquared]

Someguy_ca,May 26 2008, 11:16 PM Wrote:Just an update. I do have a job, so the car has now crossed into the trade in status... Yes I know I'm going to get squat for it... But live and learn, and don't buy another SVT Focus.
[right][snapback]265164[/snapback][/right]

Other than post a car f/s I know you haven't actually asked for our advice ... but it seems you're in a bind and perhaps could use some. Like sparky said, no offense meant - FWIW take it or leave it.

In the car business you're what's called being upside down ... owing more than a car is worth ... in your case made worse by the repairs needed.

One solution (not usually recommended BTW but could be valuable in your case) is in fact to buy a new car ... get them to take your SVT in trade and give you what you owe so you can pay off the SVT loan. The difference between what the car is really worth and what they are "giving" you in trade is then tacked on to the price of the new car, to be financed on the loan of the new car. For example - they show the 9000 as trade and payout the loan, but really only give you 5500 for the car - the difference is 3500. This would work more to your advantage if the new car is say a Focus with 0% financing.

This would obviously have the effect of seriously overpaying for the new car, but at least the payments will be on a vehicle that is in good working condition and under warranty - and it will give you some breathing room to get your finances in order.

The key to making this work is to be very sensible and conservative about your choice of new car ... the idea is to keep the payments as low as conceivably possible considering you will be financing a few extra thousands of dollars.

On a sixty month loan (5 years) at 0% calculate an extra $20 per month on the loan payment for every $1000 owing ... so if you're upside down to the tune of 3500 bucks, that's $70 per month just to take care of the amount owing on the old car.


BTW - if you haven't already, you should ask the finance company for the payout amount ... unless the loan is at 0% it will be less than the sum of the payments still owing, as you will get a break on the interest. This is the first step to solving your problem - identifying exactly how big it is.

Good luck and feel free to PM me if you have any questions. Cheers.