Ok I have a huge dilemna right now. I now have an 03 WRX. My dealer just called me to tell me they will give me 14,000 for my car because of some sale or some****, because I have under 60k miles on this bad boy...Sounds awesome to me. He has a new 2006 STi on his lot. I've gone to the showroom and checked it out before waiting for oil change and what not. It's beautiful and my dream car. (An STi is my dream car) I WANT IT...

MSRP for this car is $33,717 and the Dealer Invoice is $31,854. I did some math and found out how much I've paid for my car and so on and I'm in need of help on what they will make me pay for this in the end average.

I had no credit when I bought my car so I had to use my moms. Hers is ****ing horrible so I ended up with a 15% APR and have a payment of $433.77 a month. My first payment was Feb 24th of 2006, so that means as of now I've paid $4337.70. With that info is there anyone that could possibly give me a ballpark figure of what these people will make me pay. Don't include the 15% APR because I have my own credit now. Not sure what it is but it won't be bad because I've been perfect on my payments for this car. Paying bill in cash to the bank of the loan at least a day in advance.

Could someone help me out with this?

Edit: My cars cost is $18,998 off the lot. It was around 31 overall with that ****ty APR...

 

You're still upside down at $14k trade-in, but probabyl only $2000-2500. If you can get a decent APR on the STi (or an '06 WRX) you will probably make that back with the lower interest. Now, you can't upgrade to an STi for free, it will cost you a little bit in the end, but I think you can strike a very favorable deal. But, be sure to check what will happen to your insruance rates if you were to buy a new STi or WRX. That might be hundreds every 6 months, or it could be almost nothing, depending on your carrier.

 

Dont forget that your insurance rates are going to take a bump as well.

 

Could you give me of a rough estimate maybe...Would it stay around 30k, or would it be under or over. I know I'll be paying more because it's better car and newer, but I could possibly have a smaller payment having my own credit now. I won't know until tomorrow. I'm going in tomorrow to talk to them see what's up with this stuff. I just want something to go by. Maybe I could learn to talk him down or something.I just think this is the best place for help. I would hope you guys wouldn't cheat me.

I did some calculating. I added the 31k the original price is by 14. Brought it down to 17k. Then added the amount I HAVE NOT paid on my car now which is 14k. So the car came out 1k more than original price, but if I had good credit, I could have a payment around $380-$420/month. It's a very rough estimate from someone who doesn't know how this **** works. But both of those are better than my current payment of $433.77/month.

Thanks for you guys info by the way. Much obliged.

 

Did you call to get what your payout is on the WRX, or are you subtracting your payments from the original loan amount? Remember, most of your first year's payments are toward interest.

Do you have any money for a down payment on the STi? It will be very hard for you to get the loan on the STi without at least $2-3000 unless your credit is absolutely sparkling. If all you have is less than a year of car payments though, you're not going to be able to get a loan without one.

 

Your payments are going to be around $650 a month. But there are several factors that go into this. You are buying a new car with no down payment. There is no equity from your other car going into the STI. There for you will be paying the full 31k. Then you have to factor in tax, in my area it is 8.5%, thats another $2600. Now you have to pay interest on all 33,600. With good credit you can get a 6.5% interest rate, not bad. Now if you are young they are going to want you on a shorter loan, if you can work it you can get in around 60 months. If you run those numbers you will be just a few dollars over $650.

Now chances are you will have to max out your insurance on this car, increasing your monthy payments for insurance. If you are under 25, your monthly payment for this car will not be lower than $300.

So to run a ballpark figure on that you are looking at $900 - $1000 a month to own that car.

If you are really serious about owning an STI you are going to want to have at least 5k down and be over 25, that will greatly decrease your monthly cost of ownership.

 

hmmm ****ty news haha. Thank you for telling me. I'm serious about owning but stupid to own it...As in I can wait for a better job or better credit and so on. I'm only 18. I have this car on a seven year loan I think. I forget.. I didn't really care. I wanted it so I got it. I'm not so sure how you get 600 bucks a month though. I could have a down payment but it'd be around 600 to 700 bucks. Yea not much but that's better than nothing ya know. I'm speechless really... I thought I had a pretty good chance with getting 14k for my car. They are saying that Subaru themselves will buy my car from me and I can use the 14k towards a new car...So in a way it's a trade in but the dealership isn't trading it Subaru themselves are buying my car. I'm a lottle confused hah..

So doesn't that mean that 14k they are giving me for my car is a down payment?

 

see if you can re-finance your current loan and take your mom off as co-signer. This probably won't lower your payments much since you have mostly been paying interest but it MAY get you a lower APR. I would AT LEAST keep your current car for another 2-3 years so you can establish a good credit history and pay the loan down to a smaller amount.

Side note: Open up a checking account and have the payment automatically withdrawn from your account.

 

Not quite.

lets say you OWE $14,000 and they are giving you $14,000 for your car. You are free and clear of your old car, now you are buying a $30,000 car. So you will be financing $30k

you paid $19k in Feb. 10 months later(now) you owe probably $17-17.5k so you are upside down by $3-3,500. The 3-3.5k will be added to your new car for a total of $33,500 financed. Take the advice in my last post, it will give you better credit for the future and you won't be upside down in a new loan. $1,000 a month for payment/insurance/gas/oil is not worth it. Wait a couple years and buy a used STI.

 

Bingo; you still have to pay off your old loan.

 

enjoy life why'll you can good luck cheers&ENJOY!!

 

I have a better job now too though..Could that possibly be better for me? Meaning they ask you so it must be important..Is that so they know you'll be able to pay it better? I'm trying to think of ways to outsmart these bastards haha.. I want this car so bad...If I can get this car for under 450 then I'm defintiely going for it becaus emy job is good enoguh to pay that and my insurance and still have some cash leftover.. I'm 18 and I have no bills really, besides my car. Well, the essentials..gas and food. I have a 30 dollars phone bill or something, so I mean I'll be able to pay that...Not that I want to haha. Blah...I want this damn car so bad..

 

Bro ok, let me lay this out like i had to myself. I have been a fan of subaru from 1999- until, i am 19 years old so just to be in an AWD vehicle with six stars was a dream for me. When i was 18 i bought a ford focus ZX4 5sp, MSRP was 14k, i paid 19k with 50k warrantee, gap insurance, exc. I had the car for a year and a half making $350.00 payments totaling 5600, but a chunk of that went into interest of course, i decided to go in to check out the price of a WRX STI 06 NEW, they told me with my car i would be looking at around $700 payments and $450.00 insurance quote I said wow that’s to high, a few weeks later i came back and looked at something less high priced to get into, there she was marked down CGM 06 TR with all the perks of the Standard WRX and more.... msrp was $22K well KBB on my focus was like 11k, thus meaning i had to roll over 5k+, well subaru cut me a deal on the car and the warranty for 100K 5 year, basically the life of my payments so i was indeed ok with that, but my payments where set at $505.00 and insurance at $350 a month, well for six stars and all wheel drive that was a small price to pay making $1400 a month (like you i only have rent for my family and phone bill 300 or so a month give or take) Realizing i was going to be stuck paying this for the next six years was the only thing holding me back and unless i make more money i am stuck with my family for some time... collage will take up some of it. In short bro, look at it this way, If you have an STI, WOW you have an STI, But dont over stretch yourself, the car off the lot is great but there is no room for customization if the car takes all your funds. In my case i have enough money to mod, pay bills, gas, and have the car, maybe even save from paycheck to paycheck (100 bux or so a month), But had i had the STI... i would be making a hard time just to get gas.
What is the moral of my long drown out story... It does not matter if your car is 400, or 600 a month if you dont have a job your ****ed ether way, but think about it, down the line would you like a payed off car, so you can move out and have finer things in life, or would you like to get the car now and postpone things like a home, or modifications... that falls on you bro.
BTW i had worked three jobs making a gross 2400 a month, with three hours tops of sleep just to get subaru to look in my direction, if your working one job making 1k A/M they will look at your debt to income ration and blow you off with out hesitation, keep that in mind.

This is the way i look at it for myself man, I would like to have kids, a wife...., and a home, i have a good car now that will be dependably 100K and six years later, it will not be uncool by 2012 as we still see very hip 1999 Rs's. The way i see it, if in six years i have kids or am ready for them, i will keep the car as a daily driver and invest in better things, if i dont have a family then this car will become a blown out rally car and i will be sitting myself in a 2012 legacy, just to get some what of a more... luxurious ride.

 

You can't get that car for under $450 a month. Even without negative equity. 2+2 must equal 4 dude, sorry. However, if you think the car is worth what you have to pay, go for it. Just make sure you know what your insurance will cost before you do.

 

He is right bro, i know it is not easy to hear something like the STI is out of your range trust me i know but on a 60 month loan your looking at $500.00 if you can pull it for 30k and that is very very unlikely. If you are 100% mind set on a new impreza just get the WRX, or TR, 2.5L nice and beefy, i play to drop the STI TMIC, Turbo, and fuel pump in mind sometime in the next two years and mixed between my turbo back, intake, and tune i will not be to far off from the STI (no, i am not saying i will be running 298 HP to catch that before it starts) for a much more economical price, at least for an 19 year old.