a1awind Posted January 25, 2008 Share Posted January 25, 2008 my wifes escape is attatched to a large payment $503 per mo.W/30 months left. i am thinking that we are further ahead trading it on a new focus so far we will be looking at $390per mo @60 months for a very loaded model. sound good ? just want an outside opinion Link to comment Share on other sites More sharing options...
jared Posted January 25, 2008 Share Posted January 25, 2008 in theory it sounds good. will that be the actual payment??? 500 a month is a lot to pay out for a car, so i would try to save all the money i could and get the cheaper car. Link to comment Share on other sites More sharing options...
WahooSteeler Posted January 25, 2008 Share Posted January 25, 2008 Is the $113 savings going to be used to reduce other debt or build up savings? If for debt, just crunch the numbers in how much faster it helps you eliminate some other debt. If for general savings, is there a goal you are trying to reach, i.e. a certain amount of money put aside for something else or emergency fund etc? Point being, if you are halfway in to owning the Escape, and you are happy enough to hold on to it for a few years after payoff, you might be better off keeping it. A simple way to view it, what will be your situation in five years under both scenarios: Buy the Focus: $113 savings x 60 months = $6780 saved + a fully paid off 5yr old Focus Keep the Escape: $503 available to save once current car paid off x 30 months = $15,090 saved + a fully paid off 8yrd old Escape Hope this helps....... Link to comment Share on other sites More sharing options...
jtdesigns Posted January 25, 2008 Share Posted January 25, 2008 Is the $113 savings going to be used to reduce other debt or build up savings? If for debt, just crunch the numbers in how much faster it helps you eliminate some other debt. If for general savings, is there a goal you are trying to reach, i.e. a certain amount of money put aside for something else or emergency fund etc? Point being, if you are halfway in to owning the Escape, and you are happy enough to hold on to it for a few years after payoff, you might be better off keeping it. A simple way to view it, what will be your situation in five years under both scenarios: Buy the Focus: $113 savings x 60 months = $6780 saved + a fully paid off 5yr old Focus Keep the Escape: $503 available to save once current car paid off x 30 months = $15,090 saved + a fully paid off 8yrd old Escape Hope this helps....... Looks like you shouldn't let the escape,, ummm escape... :roll: Hey Wahoo what was your major at HS? Link to comment Share on other sites More sharing options...
Oizarod115 Posted January 25, 2008 Share Posted January 25, 2008 depend on the trade-in value of the car and the amount you actually owe on the loan. if its worth (i have no idea what it is so I'm makin somethin up) if its trade in is 10,000 and you owe 13,000 keep it cause yuo'll add that 3,000 to the top of the new car's loan if the trade in is about equal to what you owe or even more than what you owe get rid of it, and apply the money to the new car. Link to comment Share on other sites More sharing options...
WahooSteeler Posted January 25, 2008 Share Posted January 25, 2008 JT, economics......... Link to comment Share on other sites More sharing options...
Rokhound Posted January 25, 2008 Share Posted January 25, 2008 I sell it out right and buy a cheaper car pay cash for it and but the rest in the savings. Saving you no for another Comanche. :popcorn Link to comment Share on other sites More sharing options...
a1awind Posted January 25, 2008 Author Share Posted January 25, 2008 well, part of the problem is that the Escape's payment has caused many nail-biter months fiscally speaking. (when we bought it we were making a lot more money). another problem is fuel economy Jen has the same commute as i do (about 25 miles each way. but since we work different shifts we can't ride together) she is also complaining that her escape that was getting 22mpg hwy is now getting 19 hwy and its fwd not 4wd. If it were a 4x4 that would be just fine. another thing is insurance. Link to comment Share on other sites More sharing options...
WahooSteeler Posted January 25, 2008 Share Posted January 25, 2008 As always, it's not as simple as just the monthly payment. You could apply the same formula as I mentioned above after you break down what your monthly cost for ins. and gas is. In the end, the Escape is still going to look better on paper, because you can't replace the 30 months of "equity" (ha!) you have in it. The other option not mentioned is finding a good value on a used car, especially for the size/type of car you are talking about. You've got a ton of choices from $10-16k and will still have a relatively low mileage '06-'07 car. Best of all, you're payment could be in the range of your $400 +/- goal and if you buy something down on the $10-13k end, you'd be paid off in 4yrs for sure, even as little as 3. The biggest challenge will be getting out of your Escape. It takes about 3yrs to "break even" on a new car, and that's if you sell it yourself. On trade in values, about another 6-12 months. My guess is it's worth $16k on the open market, and you'd probably get @$13k on trade-in, all of this depending on miles and condition. But even if you are upside down $2-3k, you can still come out ahead with a good value used car. It's not the best idea to roll negative equity from a car over to a new loan, but in your case you would recover some of that through your lower cost to own (pymnt, ins, gas). Most people when they do this are actually going up in cost to own, so the hole only gets deeper. Anyway, I can highly recommend going to visit the guys at Enterprise Car Sales. They are agressively priced below book value (they do "no haggle" pricing like at Saturn dealers), have lots of financing options, and their customer service is the best IMO. Don't think "ugh, a beat to hell rental car", they are very selective on what they pull out of the fleet to sell, and believe it or not, most of the cars are very well maintained. They also buy cars from the leasing dept. and from auction, but they go through all of them pretty extensively, if that makes you feel any better. Check out what they have online and give them a call if you want. I'll PM you the name and # of the head of retail car sales there, tell him I referred you and he should have someone take good care of you. http://www.enterprisecarsales.com/carsales/home.do Link to comment Share on other sites More sharing options...
a1awind Posted January 25, 2008 Author Share Posted January 25, 2008 i just checked out insurance ....holy $%#@! why would our insurance go up when moving from an escape to a focus with the same coverage? it would go from 545 every 6 months to 900 every 6. I'm befuddled? Link to comment Share on other sites More sharing options...
WahooSteeler Posted January 25, 2008 Share Posted January 25, 2008 Safety ratings, cost to repair, theft history, etc. I am surprised it's that much though. :eek: Link to comment Share on other sites More sharing options...
a1awind Posted January 25, 2008 Author Share Posted January 25, 2008 acutally i just called the car insurance co back and it would be cheaper to get a 2006 mustang convertible. maybe enterprise will have one... Wahoo, i actually used to work for enterprise so i have that info. Link to comment Share on other sites More sharing options...
a1awind Posted January 27, 2008 Author Share Posted January 27, 2008 well, we went ahead and got the focus (pics tomarrow) when i called the insurance co with the vin, the quote went WAAAAAY back down. so given that we went from 19mpg to 35 mpg hwy and dropped our payment 110 per month. Not to mention we have a car under warranty again. The salesman (after the deal was done) said to me " now we have to get you out of that chevy of yours" quick as a wink my respose was "you start selling Jeeps here we will talk." Link to comment Share on other sites More sharing options...
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