bbbradley

Rolling negative equity into the next car purchase is possibly one of the worst financial moves you can make. Get your current car situation fixed first, then buy something else.

/bill

chrism

my negative equity will be wiped out if i get into the rx.....thats one of the main reasons for me to do the switch....

SilverEIGHT

My suggestion is that if you have the money to purchase a car that you really want, then just do it. If you really love the car and cannot get it out of your mind then you should be driving it. No matter what you are driving now. Life is too short to not enjoy the things that make us happy and trust me; an RX8 can make you happy! But this is true with any car though, not just the 8. I think it is purely a financial move. If you have the money, do-it! If you don't then save up and make your move when you are comfortable. Shop it out and be confident you are making the right decision. As long as you are questioning you motives for changing you are not ready to buy anything. If you cannot pay for the gas consumption then you should not change cars.

The passion of owning an 8 is something that gets in your blood. It's a way of life that you understand certain things are to be expected. You know there is a flooding issue, break-in period, gas consumption, "lack of low end torque", etc. You just accept this and understand the trade off is the smile on your face and the feeling deep in your sole that you are driving the most awesome car on the road for the price of a plain-Jane ho-hum family car. When you turn down the stereo so you can listen to the rotary engine, when you drive on the mountain twisties and the car never barks a tire or slips, when you drive in a tunnel and say, “dang, is that my car’s sound”, when you shift the gears at the beep, when you park it of the far side of the parking lot and look over your shoulder at her as you leave her for a few moments, when the straight-line power band never falls off to 9000 RPM, you are hooked. There is no questioning whether you made the right decision or not.

It is truly a passion! :D

Speed-ER doc

Don't forget to budget for car care products, because you are probably going to want to wash, wax, and detail it every weekend. It's a beauty, for sure.

I don't have that addiction anymore. :p

chrism

i have the passion for high revving cars...trust me....the rx is even higher revving than mine....i love that....handling is important to me....im an enthusiast guys....trust me on that....im already getting excited and hoping this works out for me!....if it does i will have the car broken in over a weekends span if i could......

i have lots of good stuff already

bbbradley

And rolled into more negative equity... The Mazda dealer is not forgiving your debt, they are just moving it into a different pile. Any "good deal" you are getting is merely them taking any rebates to eat away your poor financial position...and create a new poor financial position.

What is the OTD price without the negative equity trade? What is it with the negative equity? There's your "wiped out" debt.

It's your money, but IMO it's a stupid decision.

/bill

dragula53

I agree with everybody in spirit, even if their approaches are a little harsh.

You aren't going to make money on the deal.

You lose a bunch of bucks as soon as you turn the key for the first time in the rx-8.

There isn't a really easy way out of the negative equity problem, but passing that negative equity from car to car isn't the healthiest way to manage it.

In a couple years when you decide to sell the rx-8, and still owe over $20,000 on a car that is worth 15,000, you will be in the same boat, and want to pass the extra onto the next greatest thing.

You are going to eat a lot on that extra interest, to say the least.

I've been there, it sucks.

I'm not saying don't get the 8, but don't talk yourself into it by saying that you are saving money.

It's not gonna fix your negative equity problem.

chrism

the otd on the rx is 24k on a sticker of 32k i am 7k in the hole on a car that is worth 15k.....i would rather pay 31 or 32k on a car that is worth the 32k....yes granted with my negative equity i would be still paying full price on an rx but i would feel more confident paying that much for a car that is valued closer to it than mine is.....its really not that bad of a deal because for the same or less on monthly payments i will have a car that is valued higher than my current one and for a shorter term than i am at currently.....how does this in your opinion equate to a poor financial/stupid decision? i am not tacking on anything by doing this or paying more than i would have originally......please explain so i can understand your point of view

chrism

not to mention i am also getting a lower apr on the rx than i currently have....all i lose is the time/payments i have made on the car that i currently own...and the way i look at it i would have had to do it any way....it would be like an expensive rental

Speed-ER doc

You are assuming the car is worth 32K. It is not. It is worth 24K, but you are going to owe 31 K on it. Thus you are still in the hole. And when you drive the 8 off the lot, it's only worth 22K. So you are even more in the hole.

chrism

i am aware of that.....but its worth it for me to do that for a car which in my opinion "I" value more than my present one.....that was all i was saying....this deal is for my selfish reasons and makes sense to me in my own twisted pretzel type of logic....i know the car is worth less on the books but to me it is not.....now do you understand my lunacy?....i am aware of the financial differences and that i am shifting debt around....i know im still in the hole....but depending on how well the rx holds its value i may be able to get out quicker than my car.....which seems to have lost quite a bit as well

Speed-ER doc

Just trying to help, man.

It's hard to be logical when it comes to our cars. Follow your heart!

124Spider

It starts with having an awesome wife. When the Toyota I had been driving for 15 years started to die last year, my wife gently suggested it might be time for a replacement, and it might be appropriate, since our kids are mostly grown or almost grown, to get a roadster (she knows I love two-seat, nimble convertibles; my first car was a well-used 124 Spider). So, we looked at the performance roadsters, and I liked the S2000 much more than the Boxster, 350Z and TT. I did not want to drive a BMW, so I didn't look at the Z4. Then, 8 months later, I suggested to my wife that it might be a good idea to semi-retire the Odyssey, to keep it alive for a lot longer, and she should get a car she would enjoy. Well, she doesn't know cars, but I do (and I know her pretty well after more than 30 years), so I suggested she should look at the RX-8. She loved it; she wanted to drive a Mini Cooper S, and did, but it didn't hold a candle to the 8, so she bought it.

I'm a lucky guy!

bbbradley

Thank you! Someone else sees the light!
dragula I didn't mean to be harsh, but my first post about the financial implications of this decision were ignored.

Chris - your logic seems to say becuase my payments are the same, I am in the same situation. Look at the total payout. Hell, I could buy a BMW 7-series for $500 a month...for about 15 years, does that make it a good decision? 99.999% of cars are depreciating assets, the longer your term, the longer you are before you have any equity in the car. If I understand your numbers, you currently owe $22k(!!!) on a Matrix that for a NEW XRS sells for under $18k (according to carsdirect.com). Care to clarify that? That XRS better have very few miles on it for it to be worth $15k when a new one is only a few thousand more...with no unknowns, and a lower APR if it is financed.

How much longer do you have on the XRS? What APR and payments? What is the TOTAL deal for the RX8? Months, selling price, APR, down payment, etc? I am trying to help you understand why this isn't a good financial decision, and maybe if I do some calculations it will help you understand...or clear up why I may be wrong.

/bill

124Spider

Doc! Finally there's something on which we can agree! :p

bbbradley

That is what you seemed to "forget" about before. Regardless of what anyone says, you've already made up your mind...I'll look for the "Help, need to sell my '8 due to financial problems" in what...6 months? :D

/bill

chrism

The reason i owe on the matrix was a roll over on a previous car in which i got screwed on....im am going to be at 7.9% 550 a month for 60 months....my trix has low mileage on it and they are giving me more than its worth to make the deal because they have been sitting on quite a few rx8's for a long time....my apr now is 8.9% that i am financing on the trix....i also have roughly 48 months to go....the total for the rx9 is 24 and change....in my opinion it seems like a good enough deal because i know with all the rebates and dropped price like i said its just basically gonna wash with what i am negative....i know i am going to pay more for the car....some where along the lines of 30ish and i know its worth 24ish but in my logic its like im paying sticker for the car....make sense?

bbbradley

Some people should quit while they are behind! So, you didn't learn your lesson, and you're going to do it again?? Car dealers must love you!


I added the bold...can you see the error?
It's called the shell game...sure, they'll give you more for the trade, and take away the discounts on the other end.

I'd suggest you take an intro to personal finance course.

/bill

chrism

ok but how do you figure they are taking away discounts from me?

dragula53

they are going to give you an extra thousand on your trade, but going to keep an extra thousand on the cost of the rx-8.. or in the financing.. or wherever.

chrism

actually they were giving me an extra thousand on my trade by taking another thousand off the rx.....i was discussing it with the desk manager while i was at his computer

dragula53

A dealer would never ever lie to make you feel better so you drive away in a shiny new rx-8.

But seriously, you are looking at this the wrong way. Go ahead and trade in the matrix on an rx-8 and add your negative equity onto the rx-8 because you really want an rx-8.

Don't try to justify it financially by saying that it is going to eliminate $7,000 worth of debt for you. It doesn't work that way.

Good luck, either way.

Moo

bbbradley

chrism - you're numbers don't make any sense... You sure you have them right?
a $31k loan at 7.9% for 60 months works out to $627/month.

BTW - if they are giving you 7.9%, I know where you are losing money! :D AAA offers 4.2% for a new car (and they are still making money), by taking the 7.9% you are paying an extra $3,200 in finance charges. Still think it's a great deal?

Did they tell you Mazda is running a financing special? 3.9% for '04, 4.9% for '05 RX8s? You are being hustled!


You really should do some more shopping before you do anything!

/bill

Speed Racer

Geez, stop badgering the guy. It is his money, let him spend it however he wants.

hagar852

The problem about getting those low rates mazda offers is you have to qualify for them.. And most do not... I only qualified for what Chris was getting and I didn't like that either...

Through my private credit union I get 5.1% on a 72month term new car loan.

I had the same situation Chris did.. I had $7000 negative on my maxima... I was lucky to keep it the same getting into the RX-8.

I am pretty good at math and at first the dealer tries to confuse you with numbers, and that tactic did not work on me...

It was a very pain staking process that I was lucky for it to work out...

So I wish you luck chris.. I hope everything works out for ya.