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How long should i wait to trade my car in?

I'm a 34 year old man. I bought a 2012 mustang coupe premium in september of 2020. I made a stupid decision to buy it and knowing it was out of my price range. The car was $14,994 and my car payments is $355 a month. I know i have to live with my stupid decision for awhile. I wasn't more open to 4 door cars like sedans like i should have. I been having buyers remorse crisis since october. I wish i was open to 4 door cars for money market reasons of finding something that was more affordable in my money market. The $13,000 and over is out of my money market range. I knew i couldn't afford to buy the mustang but i ended up making that stupid decision anyway. My car loan is for 66 months. I'm not planning to keep my car for all 66 months due to getting a apartment with my 2 friends in the next few years and i don't want to be having high car payments when that time comes. I really can't afford the $355 car payments but i'm gonna ride it out for awhile until i'm able to get positive equity when i owe on the car less than what it's worth, refinancing isn't an option because i'm not planning to keep the car for all 66 months, sporty cars are way too expensive. I'm planning to move on to 4 door cars in the future and knowing i can get something that's more affordable in my money market. I live with my parents so that's why i can't afford to live on my own solo. My question is how long should i wait to trade my car in for something more affordable that's in my price range?

7 Answers

  • 1 month ago

    It depends on your business type and mind.

  • 1 month ago

    Here's the thing: Regardless of what you do, you OWE that full loan balance.

    If you still have 66 more months of that $355 payment in your future, that would add up to $23,430.

    Let's say that you can find a buyer for this car who would pay, say, $15,000 for it.

    In order to sell it, YOU would have pony up $8,430 at once to add to the $15,000 that they buyer will pay you and give ALL that cash to the finance company, in order to get a clear title to give to your buyer.

    The time to have done these calculations was BEFORE you signed the CONTRACT.

  • Rita
    Lv 6
    1 month ago

    If the vehicle is new, you should ideally wait until at least year three of ownership to trade it in, as this is when depreciation normally slows down. If it's used, it already went through the big drop in depreciation and you can usually trade it in after a year or so.

  • Anonymous
    1 month ago

    What you need to know is whenever you trade cars you LOSE thousands and put yourself in even more debt.

    STOP doing it.  

    Pay off your current car and then save for another. Then you sell your car on your own and look to buy from a private party.

    You can't borrow your way out of debt.

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  • Anonymous
    1 month ago

    You got hosed.  Make your payments and PRAY that the vehicle does not break or you will be paying for a car that you cannot drive.  It is very possible that you will have equity on the car only when it is almost paid up.  Good luck.  You will need it.

  • ?
    Lv 7
    1 month ago

    You trade it in as soon as you can. The longer you have the car, the lower it’s worth. You’ll also be putting in more money for a car that’s dropping in value. 

    Have you consider just selling the car back to the dealer and just absorb the loss. Did you shop around to find the lowest interest rate. The interest rate is what kills you. There’s a huge difference in monthly payments between 3% and 4%. 

  • PW
    Lv 4
    1 month ago

    Go to two or more dealerships and see what they offer, then add 2,000 dollars to there price and try to sell it on your own for a week or two on craigslist.  

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