QuestionQUESTION: Hello! My husband and I have a 2006 Dodge Stratus and we owe 11,000 due to a high interest of 16% (this was when are credit was not so good) Our credit is way better now upper 700. We are in need of a bigger car due to are growing family! But our question is should we trade it and take the hit of tacking on the extra? We have 2000 to put down on a car. The payment was 450 but it is now 390 cause we have made higher payments on it.
thank you for your help, Kati
ANSWER: Hi Kati, Can you please let me have your zip code and let me look up your trade in. What model is it, mileage and what kind of equipment? What brand of car are you wanting to buy?
---------- FOLLOW-UP ----------
QUESTION: Hi Danny!
Thanks for getting back to me so quick! My zip is 60102 Dodge Stratus SXT V6 52000 miles alarm system and remote start. We were looking at a used Saturn Vue for 20,000 at carmax but really we just need more room so what ever we find. Again thank you for your responce! Let me know if you need any more info!
Kati
AnswerHello Kati, This is what I found, first., your trade value is going to be around $6000, look at this link, cut and paste.
http://www.edmunds.com/used/2006/dodge/stratus/100561070/options.html?tmvaction=
So it looks like you owe $5000 more than it's worth, if you subtract your $2000 you have it's only $3000. Not so bad. Anytime your car is close to %50% of the Finance value, yes you want out.
Now the trick is to find a vehicle that is behind the book value, let's say you find a car that has a $20,000 book value but you can buy it for $17,000, then it eats up that $3000 on your vehicle and keeps you in line. The way you do this is the same way I do it, When you find a car you like, go to edmunds.com and plug it in under "trade value", thats what a dealer is going to give someone for their trade in, you get to have an idea of what might have been paid for it before the dealer marks it up. This will also let you know how to negotiate on it.
Also I pulled up some vehicles for you in your area within a 50 mile radius. I found 29 All Wheel Drive Saturn Vue's. They range in price from $29500 to $15900, I think you have picked out a vehicle that there is a lot of and you should be able to accomplish what your trying to do. Please shop around and take a look at several before you make a decision and do a little homework. here is the link to vehicles in your area. Cut and Paste.
http://www.autotrader.com/fyc/searchresults.jsp?rdm=1273588144961%26lastStartYea
Try some of this first and then get back to me with what you found or questions and we will finish.
