over paying for gen 5

[04camryle]

ive had my gen 5 camry for about 3 months now and am really considering trying to trade it in for a 08 or 09 lancer with possibly lower monthly payments right now im paying 550 a month for an 05 base model camry for the next 5 years and by the time im done paying ill be paying just over 32k for a camry? not too sure if the dealer did some stuff with out telling me or what

[njerald]

Typical Car Buyer.............No clue on sales price, interest rates, payment length, etc.

You probably owe more on it than it's worth.

You signed the contract and you're getting ready to do it again!

[04camryle]

all hosntly though if im gonna alot i mine as well get something that i really want i mean i love the cam but i was looking into a lancer before the cam but toyota got back way before mitsu

[04camryle]

i kinda figured i was gonna do something stupied as this was my first car lol very typical i assume

[akira751]

Please before you go to dealership found out how you owe and your int rate you are paying now and your terms. Bottom line don't go in blind.

[_Charles_]

Never buy a car based off of a "payment". Go in ready to deal on price.

Now I am sorry if I am going to make you feel bad here, but...

BRAND NEW 2009 Camry Se V6, invoice + TTT = $25,000
5 years @ 6,75% = $492/mo payment.

I would say they took you for a ride (in more than one way).

Charles

[04camryle]

ya i pretty much got screwed any info well help so anything comes to mind i dont mind it im really kicking myself for getting rid of my honda right now lol i am also finaced very high too

[_Charles_]

Unfortunaltely, there isn't much you can do.

Here's what I would do in your situation...

#1 Forget getting a new car.
#2 Find out where exactly all the $$$ is going. How much did you actually pay for the car? Did you finance additional items like Tax, Tag, Title? Did you get the dealerships "extended warranty'"?
#3 Find out what the current interest rate is on the current loan. I am going to guess around 18%
#4 Join a Credit Union. If your payoff is low enough, refi through a Credit Union as soon as you can. Make sure you go to a Credit Union, not a BANK!
#5 Put extra $$$ towards paying down the principle
#6 If you EVER look at a car again, remeber this experience and ask for a friend to help you buy a car. They can guide you without the emotion. I do it all the time (that is, I help friends buy cars). Car Dealers don't intimidate me, and if they try, I walk my sorry a$$ right out the door.

Hope this helps.
Charles

[04camryle]

what exactly would a credit union do for me though i was told once before i should do that

[_Charles_]

Credit Unions are member owned, and offer better terms and rates than Banks. Credit Unions will usually be more lenient when it comes to credit requirements, and typically have lower rates. Once you join a CU, you are a member owner.

I have a Bank and a CU. My CU has my house, and my Car loans, as well as my Visa and Savings. My Bank has my Checking, and Debit Card.

Each has there place. The $$$ is green at both places, it's just easier to get and cheaper at a CU.

Charles

[04camryle]

well im still considering the lancer but does it cost money to join a credit union?

[04camryle]

if i can i will most likely join one tommarrow

[_Charles_]

I Had about $30 in my CU account when I got my first loan from them.

There are other requirements. You have to meet membership rules. Don't give up, Ask your employer or other family members if they belong. Normally, they can help you get accepted.

[04camryle]

thanks for elaborating on that for me now the only thing im running into is really decideing to keep the cam or go for another only because if im pay as much as i am i really want something i fell is worth the money as ive looked into the 09 lancer and also an 04 wrx wagon

[_Charles_]

I think it's hard to advise you further until you find out the exact numbers.

If you paid $20,000 for 60 months (5 years) @ 21%, your payments would be $541/mo.
In the 3 months that you have owned it, you have paid only about $550 in principal. That means you probably owe about $19,500 if you payed it off TODAY.

$19,500 minus the $12,500 trade-in value of the car, and you will see you are $7,000 short.

Take the amount you are short, add it to the price of the "car" you really have to have, and that will how much you will be paying for your next car. It's called "being upside down", and you are so far upside down that you should be headache from thinking about it. About the only thing with about $7k wiggle room is a full size SUV, becuase they can't give them away thanks to the high gas prices, and with you r lack of credit, you couldn't afford it anyways.

Why do I have the feeling I will be seeing this post in the near future:

"I bought a 2009 Lancer, did I pay too much?"

Be careful. You will find a dealer willing to 'help' you out of your situation. I feel a 84 month loan on a bloated MSRP, high interest rate, on a P.O.S. car coming on.