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About to trade for WRX...convince me to not trade.

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AERacing

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Discussion starter · #1 ·
I currently own a 325ci - 5speed, black leather, xenon headlamps, sport and premium package.
I am looking to downgrade to a new WRX. My payment will be pretty much the same because I am upside down on the BMW.
Truthfully, I do not like the BMW, but should I be more patient and wait until I do not owe so much on my current car? Any advice would be greatly appreciated.
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#4 ·
Re: About to trade for WRX...convince me to not trade. (AERacing)

If you are upside down and cannot immediately pay off the negative equity, trading will probably dig you even deeper into negative equity due to the various costs involved and the fact that you will be selling one car at trade-in and buying another at dealer-retail.
 
#5 ·
See if you can find a left over 9-2x Aero. Price was even better and Saab some times offers deals. You might even find a lower payment.
You don't like the BMW - some CLers may find that hard to register but it's your car and you are the one driving it.
Personally I might rough it out and wait until I wasn't upside down.
Also, make sure you really like the WRX. Consider that the 06 models will have a less laggy 2.5T engine - are you going to feel the same way again in 6 months? Then you'll be *really* upside down.
Make sure you can own your next car long-term so you can recuperate financially.
 
Discussion starter · #6 ·
Re: About to trade for WRX...convince me to not trade. (hoveraudi)

It is slow... the clutch needs to be replaced, I need new rear tires, there are chips in the paint. The interior is not as clean as I would like (I bought it used). It gets the wrong attention (I am really not a car snob...).
I am getting married in the next year and she has a child in a car seat...so 4 doors would be nice...(that is not really the reason why I want to trade.)
 
#7 ·
Re: About to trade for WRX...convince me to not trade. (AERacing)

Whatever you do, plan it right financially so that you're not upside down again. If you're subbing out for new identical payments, you may wind up upside down again because as (i) a new car that is (ii) being upgraded next year, the WRX is going to depreciate a lot. You could wind up in trouble again.
This is exhibit A as to why you should never buy based on a monthly payment. BMW's don't depreciate much, how did you get upside down? High interest rate?
We're missing key information in order to help you here. What is trade-in/private party/retail for your BMW? Loan balance (principal, not interest)? Payment? Interest?
What price are you being offered for the WRX? What are the financing terms?
 
Discussion starter · #8 ·
Re: (juice)

Quote, originally posted by juice »
See if you can find a left over 9-2x Aero. Price was even better and Saab some times offers deals. You might even find a lower payment.
You don't like the BMW - some CLers may find that hard to register but it's your car and you are the one driving it.
Personally I might rough it out and wait until I wasn't upside down.
Also, make sure you really like the WRX. Consider that the 06 models will have a less laggy 2.5T engine - are you going to feel the same way again in 6 months? Then you'll be *really* upside down.
Make sure you can own your next car long-term so you can recuperate financially.

Thanks Juice for the advise -
I already looked into the Saab and they do not have any more manual transmissions. *not sure if I believe them*
I have wanted the WRX since their debut, but have never gone that route... I had a GTI 1.8t before the BMW and really liked it.
I may wait until January and see...it isn't that far away is it??
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Discussion starter · #10 ·
Re: About to trade for WRX...convince me to not trade. (HarryHood)

I owe $19k on the BMW - they are offering me $14k.
The WRX is sticker $26k, they are offering $24k.
But know they are doing funny math because I want my payments under $500/month and they know that.
*I feel weird about giving my personal info on the web, so dont poke too much fun...I am just looking for adivise.*
Thanks,
 
#11 ·
Re: About to trade for WRX...convince me to not trade. (aquabat911sc)

Quote, originally posted by aquabat911sc »
If your already upside down on the Bimmer and your trading it in on a new car and rolling the debt into that, you are digging yourself an even bigger hole. Don't do it.

Exactly. And he's rolling it into a car brand that depreciates more than BMW, in a nameplate that is going to be upgraded/replaced next model year.
 
#12 ·
Re: (AERacing)

Quote, originally posted by AERacing »

Thanks Juice for the advise -
I already looked into the Saab and they do not have any more manual transmissions. *not sure if I believe them*
I have wanted the WRX since their debut, but have never gone that route... I had a GTI 1.8t before the BMW and really liked it.
I may wait until January and see...it isn't that far away is it??
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Waiting will probably be your best bet. First the new model coming out will cause the current model to depreciate and dealers to mark down those models if you are willing to take the older model. Second you can pay off more of your BMW so you are less upside down.
Just remember once you get a new car you will be upside down again for a while.
 
#13 ·
Re: About to trade for WRX...convince me to not trade. (AERacing)

Quote, originally posted by AERacing »
I owe $19k on the BMW - they are offering me $14k.
The WRX is sticker $26k, they are offering $24k.
But know they are doing funny math because I want my payments under $500/month and they know that.
*I feel weird about giving my personal info on the web, so dont poke too much fun...I am just looking for adivise.*
Thanks,

No problem. I just don't think rolling your $19K debt into the next car is going to help you. You're starting $5K down before you even have a new car.
 
#15 ·
Re: About to trade for WRX...convince me to not trade. (AERacing)

Quote, originally posted by AERacing »
I owe $19k on the BMW - they are offering me $14k.
The WRX is sticker $26k, they are offering $24k.
But know they are doing funny math because I want my payments under $500/month and they know that.
*I feel weird about giving my personal info on the web, so dont poke too much fun...I am just looking for adivise.*
Thanks,

Never give a car salesman a target number for a monthly cost. You'll soon be seeing "nice" numbers, but you'll probably also be looking at 72 months @ 8.xxx%
Since you already know the car you want, do research on Edmunds in the subaru forums and get a realistic purchase price, then negotiate the price of the trade in, get an idea for that by using the Real World Trade in value forum there, then get your credit score from one of the big three firms, that way you will know what rate you qualify for. Take that info and negotiate down the rate of the loan. For a car like the WRX, dont even consider going over 60 months, and that might even be a stretch, too (unless Subaru is offering a killer rate for that length of a loan, and of course, you qualify for that rate)
This is if you truly want out of your Bimmer and into the Rex. I think you should wait it out with the 3er, pay it down, see if you can even prepay the loan without penalties, and at the very least get yourself down to a net zero situation, then look at getting rid of it
 
#16 ·
Re: About to trade for WRX...convince me to not trade. (ProtogeZoom)

Quote, originally posted by ProtogeZoom »

Never give a car salesman a target number for a monthly cost. You'll soon be seeing "nice" numbers, but you'll probably also be looking at 72 months @ 8.xxx%
Since you already know the car you want, do research on Edmunds in the subaru forums and get a realistic purchase price, then negotiate the price of the trade in, get an idea for that by using the Real World Trade in value forum there, then get your credit score from one of the big three firms, that way you will know what rate you qualify for. Take that info and negotiate down the rate of the loan. For a car like the WRX, dont even consider going over 60 months, and that might even be a stretch, too (unless Subaru is offering a killer rate for that length of a loan, and of course, you qualify for that rate)
This is if you truly want out of your Bimmer and into the Rex. I think you should wait it out with the 3er, pay it down, see if you can even prepay the loan without penalties, and at the very least get yourself down to a net zero situation, then look at getting rid of it

Very good advice. It seems difficult to get upside down on a BMW, given how well their resale tends to hold up, so I wonder if his original deal for the BMW wasn't one of these "give me $500 a month in payments" thing, which always causes a dealer's eyes to light up, because now they get to play with loan term, down payment, interest rate, and so on. So sure it looks like you're getting a deal, but you end up upsdie down almost as soon as you walk out the door.
Rolling debt into a cheaper car is throwing good money after bad. You're already in the hole, why risk going deeper?
 
Discussion starter · #17 ·
Re: About to trade for WRX...convince me to not trade. (HarryHood)

Quote, originally posted by HarryHood »

Very good advice. It seems difficult to get upside down on a BMW, given how well their resale tends to hold up, so I wonder if his original deal for the BMW wasn't one of these "give me $500 a month in payments" thing, which always causes a dealer's eyes to light up, because now they get to play with loan term, down payment, interest rate, and so on. So sure it looks like you're getting a deal, but you end up upsdie down almost as soon as you walk out the door.
Rolling debt into a cheaper car is throwing good money after bad. You're already in the hole, why risk going deeper?

You are probably right. I should stop the downward spiral now, and wait it out. Anyone know where I can get some good clutch work done for a decent price??
Thanks for your help guys!
 
#18 ·
Re: About to trade for WRX...convince me to not trade. (AERacing)

Ash....Who gave you the $700 estimate on the clutch?

Give Robby at Bavarian Imports a call. 404/351.2002 They're down on Howell Mill. I had the GTI there a couple times and they were great and reasonable http://****************.com/smile/emthup.gif
Hell, maybe you could round up enough people in the Atlanta area and have a cluith install party....with plenty of beer afterward
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Your car is nice, man....don't get a Subie
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#19 ·
Re: About to trade for WRX...convince me to not trade. (AERacing)

FWIW, the WRX lets in a lot more road/tire noise, lag can be a pita and in my experience eats tires pretty quickly. Also, they depreciate fairly quickly, so trading isn't going to help your negatve equity situation. Otherwise, it's a great car
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#20 ·
Re: About to trade for WRX...convince me to not trade. (ATL_Av8r)

why not go for a CPO WRX if you want to reduce your debt? I don't really see the point of putting yourself deeper into debt, having the same payment, and driving a cheaper car.
 
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