Anyone purchase with a negative trade?

[TennesseePA]

Why would a dealer who’s purpose is to make money sell you something for $2k Less than it is worth? If it is truly worth $2k plus all the fees than you paid for it they wouldn’t be in business very long. I’d bet my house that you could not sell it to an informed buyer for what you owe. Why would anyone with any common sense at all buy something for $X when they can buy the exact same thing for $X-$2,000? I’m glad you like your truck and you feel you can afford it. I just disagree and choose to live a different lifestyle at this point in my life.

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[eaglerugby04]

Get a trailer and save up for a bit. It will feel a lot better to get the JT when you are in a better situation.

To be honest with you at 5 Ft the bed is kind of useless for hauling much of anything. With the seats folded town your current car probably has more capacity. Anything long I drive the van, anything heavy or large I hook up the trailer.

Fun factor is something else awesome though....

 

[CarolinaGladiator]

Why would a dealer who’s purpose is to make money sell you something for $2k Less than it is worth? If it is truly worth $2k plus all the fees than you paid for it they wouldn’t be in business very long. I’d bet my house that you could not sell it to an informed buyer for what you owe. Why would anyone with any common sense at all buy something for $X when they can buy the exact same thing for $X-$2,000? I’m glad you like your truck and you feel you can afford it. I just disagree and choose to live a different lifestyle at this point in my life.

Either I wasn't clear or you misunderstood me. I lost $2000 on my Ram and I paid considerably less than sticker for the JT. Either way the payment and terms were within reason and doable without being a financial burden. The OP should do what he is comfortable with for sure but he asked for experiences.

 

[TennesseePA]

Either I wasn't clear or you misunderstood me. I lost $2000 on my Ram and I paid considerably less than sticker for the JT. Either way the payment and terms were within reason and doable without being a financial burden. The OP should do what he is comfortable with for sure but he asked for experiences.

I understood you completely. You rolled $2k from your last car into your new one right? Meaning if I went to your dealer and bought the exact same truck with cash I would have paid $2k less than you financed. Price and value are two different things. Even my 15 year old daughter knows that sticker price is an arbitrary number but value is what someone will actually pay for the vehicle. That is why GAP insurance exists, if everyone only paid what the car is actually worth then there would be no need for GAP insurance. If your Gladiator is totaled or stolen the the value assigned by the insurance company would be all that is required to make you whole. But since so many people are eager to go upside down an an auto purchase GAP insurance was created to fill the void.

 

[93civej1]

Make sure whatever you do is get GAP coverage when you roll negative equity into a new loan.

yes for sure. Ive already been saved by gap once.

 

[CMac]

Maybe call Hertz or Enterprise and see if they have a local Gladiator for rent...maybe rent it for a week, haul your stuff and get in a very intimate test drive..?!?

 

[siggy]

I say go for it! It's decisions like these that keep our country humming along.

I'd suggest the longest finance terms you can get. Maybe 84 months? See if you can squeeze in a 3.5" lift and 37's rolled into your new loan. I mean that and a little bit of negative equity would only increase your monthly payment by like $100 or something.

 

[Walldo]

It all comes down to how bad you want it and can you afford it. No body can tell you what to do with your money. If you feel that you can live with the moneys lost due to the deal, go for it, if not, don't. In the end, only you can make that decision.

 

[TennesseePA]

I say go for it! It's decisions like these that keep our country humming along.

I'd suggest the longest finance terms you can get. Maybe 84 months? See if you can squeeze in a 3.5" lift and 37's rolled into your new loan. I mean that and a little bit of negative equity would only increase your monthly payment by like $100 or something.

After reading this I would like to renounce my previous statements and say go for it! Thanks for helping me realize the err of my ways. I am even considering taking out loans on all of my vehicles so that I can stock up on cheap gas and buy a camper...wait I'll just finance the camper. My kids can fend for their own future, what doesn't kill you only makes you stronger right? Wow what a sense of relief I feel.

PS, I sense your sarcasm and hope y'll can see mine!

 

[ZTMAN]

I used to like listing to a certain radio call in show, Bruce Williams. Mainly general advice, but a lot of car/home financing questions.
My favorite quote of his:

You cannot borrow your way to prosperity.

Mainly targeted to the home equity loan crew who wanted to finance a vehicle or an unessential purchase for 15 years.

People do a lot of crazy things in the financial world, and can find a reason to justify their actions. Not for me, but a lot of people do it.

 

[steelponycowboy]

Dealers don't make a deal unless they hit their targeted profit, You really can't make a great deal if you are upside down and only end up being more upside down again on the next purchase (unless you keep the vehicle long enough to pay or off or nearly pay it off).

If you are that upside down, keep paying the payments until you are not, otherwise you are never going to get anywhere other than being upside down.

The negative on leases is that most of them are low mileage leases. If you drive 12,000 miles a year or less, a lease might be a good deal for you but if you are going to use a truck for hauling and off road, they will kick your ass at the end of the lease deducting for every minor blemish that could affect the value of the vehicle at the time you turn it in plus an unreal amount for excess mileage.

Leases are for people who can't afford to buy a vehicle or a business that can use it as a tax deduction. Most leases require a dollar amount (down payment) when you take the vehicle, most of the time that is your trade. A trade you won't have when you go to lease again. Leases became popular when the prices of new cars became too expensive for the average person. It made an otherwise unaffordable vehicle affordable.

If you are a private individual, don't get caught in the lease trap.

 

[TennesseePA]

I was trying to be diplomatic with my comments but I’ll just come right out and say it. If you have a vehicle financed and you are upside down $2k and do not have $2k to catch up you can’t afford a new vehicle. Seems to me that many people are one paycheck away from losing everything. Living paycheck to paycheck seems to be the American way but it sucks. Instant gratification is never a good long term strategy. But as a grown ass man you do what you are comfortable with and I will do what I’m comfortable with. My words are just my opinion and should be taken as advice and not doctrine.

 

[TennesseePA]

This thread died a quick death when the whole country was asked to stay home from work! Hope everyone is doing well but this is a good time to reconsider the paycheck to paycheck lifestyle that many Americans find OK. Just because you can make the payment when everything is going good doesn’t mean you can afford what you bought. You can only truly afford something if you can sit on the couch not working for a few months and not have to sell a kidney to pay your truck payment and feed your family.

 

[NC_Overland]

Leases are for people who can't afford to buy a vehicle or a business that can use it as a tax deduction. Most leases require a dollar amount (down payment) when you take the vehicle, most of the time that is your trade. A trade you won't have when you go to lease again. Leases became popular when the prices of new cars became too expensive for the average person. It made an otherwise unaffordable vehicle affordable.

If you are a private individual, don't get caught in the lease trap.

That is 100% not true. Should everyone lease? No. Should you be honest with yourself about how many miles per year you drive? Absolutely. Should you put a lot of money down on a lease? Absolutely not.

I've worked in the auto (and automotive related) industry for years and I'm very familiar with leasing and definitely recommend it in some cases. Like it or not, the average American never pays off that new car loan and trades the vehicle in before they paid it off so they never owned it. If you're like most people I've seen and get a new vehicle every 3-4 years then definitely leases as long as you drive 20k miles/yr or under. When I lease, I typically do a sign and drive or put $1-2k down tops. Once again, also think hard about how many miles per year you drive. I've personally done up to 20k/yr leases. If you hold onto your vehicles for a long time then don't lease. The prospect of buying a vehicle off lease at the end rarely makes sense. The lease buy out is almost always more than the vehicle is worth and most people don't have a $25, $35k, etc check to stroke at the end of the lease so they end up financing it for 60 months or more so that's not a sound financial move either.

To your last point, you do realize that the more expensive a vehicle gets, the closer that lease payments are to financing vehicle payments right? Kind of kills that argument... Now I do 100% agree that most nationally advertised lease specials are BS. They're always on a super base model that nobody has with a lot more money than you should put down and with too few miles/yr than most people should do.

I'm not trying to attack anyone here, but I needed to clear up some misinformation.

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