Can i trade in my car?

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I have a Hyundai Sonata SE 2.4 , 2011 . I bought this car around June 2011 around 26k . It was financed by Hyundai Motor Finance @ rate of 6.6 % .
It was high and i refinanced it to PENFED for 2.49% .

I have 19,300$ left in car loans now.

Now, i know that i would be loosing a lot of value if i trade-in/sell my car in the first 2 years . How can i minimize this impact ? I would like to trade in for a used-BMW 3 series around 15k budget.

Regarding my financial standing,i have no credit card debt, just started my rainy day savings. Have 5k in 401k .
I am fresh out of my grad school , graduated in 2011 , started working for a good IT company .

Any suggestions?

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jaganpro said:   I have a Hyundai Sonata SE 2.4 , 2011 . I bought this car around June 2011 around 26k . It was financed by Hyundai Motor Finance @ rate of 6.6 % .
It was high and i refinanced it to PENFED for 2.49% .

I have 19,300$ left in car loans now.

Now, i know that i would be loosing a lot of value if i trade-in/sell my car in the first 2 years . How can i minimize this impact ? I would like to trade in for a used-BMW 3 series around 15k budget.

Regarding my financial standing,i have no credit card debt, just started my rainy day savings. Have 5k in 401k .
I am fresh out of my grad school , graduated in 2011 , started working for a good IT company .

Any suggestions?


why would you go from one mistake from another?

jaganpro said:   
Any suggestions?
a) Keep the car
b) sell the car, buy a beater

Maybe OP heard BMW is better than a Sonata when it comes to score chicks/dudes.

Best possible scenario you have $0 carryover to next car, likely you will have some carryover from your Sonata. So if you want a 15k loan you better look for a 14k car.

treasurebeacon said:   jaganpro said:   I have a Hyundai Sonata SE 2.4 , 2011 . I bought this car around June 2011 around 26k . It was financed by Hyundai Motor Finance @ rate of 6.6 % .
It was high and i refinanced it to PENFED for 2.49% .

I have 19,300$ left in car loans now.

Now, i know that i would be loosing a lot of value if i trade-in/sell my car in the first 2 years . How can i minimize this impact ? I would like to trade in for a used-BMW 3 series around 15k budget.

Regarding my financial standing,i have no credit card debt, just started my rainy day savings. Have 5k in 401k .
I am fresh out of my grad school , graduated in 2011 , started working for a good IT company .

Any suggestions?


why would you go from one mistake from another?


Did you just answer your own question? Are BMWs magically more fuel efficient and less expensive to insure in your country? By the way, it's 'losing' not 'loosing'.

Why not sell the car yourself?

The only reason to do a trade is for a lease on something like a 2012 base Honda Civic because they'll take the trade and help buy you out of your debt just to push the lease, and you would only do this is you were very upside down on a loan and needed to get out of it.

Otherwise, there will almost never be a benefit to a trade because the dealer will screw you on the trade-in value, or the price of the car you're buying, or the financing of the loan, etc.

The good news is for op that he probably can at least break even on his car. So, in theory he can post an ad on craigslist and get out of his current ride. The interesting news is that he is apparently trading a year old car with only miles he has put on it for a 5+ year old car with at least 80k miles.

Op, refi to penfed was smart but this trade you're looking at making is financially stupid.

It is possible that if you find your BMW at a dealership, they will sell you the BMW and payoff your trade. I would imagine many dealers wouldn't mind having your car on their lot.

Keep the hyundai

BMW's are great, but if you are looking to go cheap with a 15K BMW, you probably don't have enough to cover/stomach the high maintenance costs.

You have a Hyundai with a warranty for another 3-4 years and 10 years on the drive train. Why would you step to an older BMW with no warranty?

(I am not a BMW hater, I have a 335i, so I know the costs **And I used to own a Sonata)

SilverII said:   Keep the hyundai

Ditto. Far, far lower costs that way.

-mike

Why not stick with the more reliable Hyundai?

The 3 series BMW won't get you laid.

If that is your goal, get a Lamborghini. You can probably get a used 5 year old gallardo for about 100k.

tennis8363 said:   BMW's are great, but if you are looking to go cheap with a 15K BMW, you probably don't have enough to cover/stomach the high maintenance costs.

You have a Hyundai with a warranty for another 3-4 years and 10 years on the drive train. Why would you step to an older BMW with no warranty?

(I am not a BMW hater, I have a 335i, so I know the costs **And I used to own a Sonata)


In 6 years or so of ownership, I paid more for electical system repairs on my old BMW than I paid for the car itself - I think I replaced probably 70% of the wiring in that car before I finally decided that enough is enough and sold the little Bavarian bast*rd to stop the bleeding. I loved driving that car, when it was working fine, but it just wasn't worth it. I regret not selling it years earlier.

The 2011 Sonata certainly won't be as much fun to drive as a BMW, but it's no big ol' Buick either - it's a perfectly adequate, modern car. It's stylish enough on the outside and inside that it won't turn off women other than ones that would likely be too high maintenance for any good FW member, anyway. And if the chick is going to be a snob about her date's car, she'd probably be a snob about a guy driving a $15,000 used BMW, too, and she'd expect him to be driving a 1-2 year old car at the oldest. A quick look on eBay Motors reveals that in the $13k to $16k range, you're looking at either a 6+ year old car with 75,000+ miles on it or else a few years newer Beamer with 100,000+ miles on it. You buy a car like that and you're going to become far too well-known with your local import car shop or dealer's service department. By the time I sold my BMW, my local shop manager got so familiar with the sound of my fairly normal-sounding voice that he would recognize me when I called without me needing to identify myself. Trust me, that's not the kind of familiarity anyone should be seeking with any mechanic unless you're working with them on an intensive restoration of a collector vehicle.

bigtimesaver3652 said:   Why not stick with the more reliable Hyundai?

The 3 series BMW won't get you laid.

If that is your goal
, get a Lamborghini. You can probably get a used 5 year old gallardo for about 100k.


If the primary goal is to get laid...there are much cheaper and more effective ways than this. Start with dating websites, low standards, and drinks at a bar...mission accomplished.

I have a relatively cost effective system to drive a BMW. I do the following with my 7 series:
**Buy a 3 year old CPO model and make sure you have at least 3 years of CPO left on it.
**Drive it for 3 years.
**Sell it just before CPO expires.
**Do it again.

3 years is a sweet spot and you get the best deals as there is always a glut of cars coming off 36 months lease. Less than 2 year old is too expensive to be cost effective and 4 year old doesn't give you enough time to drive before CPO warranty expires. I drive around 20-30K miles in 3 years, therefore don't have to replace battery, brakes etc. Just a set of rear tires is the only maintenance required in 3 years. Car depreciates around $20K in 3 years, so you are leasing from yourself for around $550 a month. A new 7 lease is around $1100.

P.S Driving a BMW without a BMW warranty is bitchslapping a grizzly

in first with ---- the Crown Vic solution

germanpope said:   in first with ---- the Crown Vic solutionBut since he wants something more luxurious, the Grand Marquis is the way to go.

string3599 said:   germanpope said:   in first with ---- the Crown Vic solutionBut since he wants something more luxurious, the Grand Marquis is the way to go.

Screw that... get a used Town Car

Mr0ffic3r said:   string3599 said:   germanpope said:   in first with ---- the Crown Vic solutionBut since he wants something more luxurious, the Grand Marquis is the way to go.

Screw that... get a used Town Car


nope, got you all beat. Marauder

Mr0ffic3r said:   string3599 said:   germanpope said:   in first with ---- the Crown Vic solutionBut since he wants something more luxurious, the Grand Marquis is the way to go.

Screw that... get a used Town Car


I was going to say, go for the King of the Panther cars.

On a serious note, I've had the itch to buy a new car (or new to me anyway) ever since I graduated college.

6 years later, I still have the same car I've had since sophomore year.

Every time I look at cars.com for a E46 M3, 330i ZHP, M Roadster, E90 328i coupe, E39 540 or 530 sport pkg, or S4 I eventually remember they can all be nightmares to own used. Maybe someday, but my Civic still starts everyday for my 90 miles roundtrip commute. My wallet appreciated no car payment and low maintenance during my 20s, although part of me does wish I gave in and bought that ZHP a couple years ago.

VicVinegar said:   Mr0ffic3r said:   string3599 said:   germanpope said:   in first with ---- the Crown Vic solutionBut since he wants something more luxurious, the Grand Marquis is the way to go.

Screw that... get a used Town Car


I was going to say, go for the King of the Panther cars.

On a serious note, I've had the itch to buy a new car (or new to me anyway) ever since I graduated college.

6 years later, I still have the same car I've had since sophomore year.

Every time I look at cars.com for a E46 M3, 330i ZHP, M Roadster, E90 328i coupe, E39 540 or 530 sport pkg, or S4 I eventually remember they can all be nightmares to own used. Maybe someday, but my Civic still starts everyday for my 90 miles roundtrip commute. My wallet appreciated no car payment and low maintenance during my 20s, although part of me does wish I gave in and bought that ZHP a couple years ago.


Of the other cars the civic is certainly better for a 90 mile commute. But I must say our e66 is quite nice, esp for road trips... That said we put a total of maybe 5-6K miles a year on it and drive the hybrid mostly (we carpool)... That said, to apply this to the thread, neither car was financed, both paid with cash, used (new to us)...

intex45 said:   treasurebeacon said:   jaganpro said:   

I am fresh out of my grad school , graduated in 2011 , started working for a good IT company .

why would you go from one mistake from another?


Did you just answer your own question? Are BMWs magically more fuel efficient and less expensive to insure in your country? By the way, it's 'losing' not 'loosing'.


Easy with the OP, he's fresh out of grad school......

fattywallace said:   intex45 said:   treasurebeacon said:   jaganpro said:   

I am fresh out of my grad school , graduated in 2011 , started working for a good IT company .

why would you go from one mistake from another?


Did you just answer your own question? Are BMWs magically more fuel efficient and less expensive to insure in your country? By the way, it's 'losing' not 'loosing'.


Easy with the OP, he's fresh out of grad school......


Sorry I didn't mean to sound rude. But that still doesn't excuse his logic. Hyundai cars are cheaper in virtually every category than a used BMW. Not to mention he bought brand new, so theres no way he can "minimize" anything. That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

intex45 said:   . That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

Did you see that the OP refi'd his vehicle to 2.49% Maybe you did and think 2.49% is atrocious, but to most of the lost sheep of America it's pretty fantastic.

BradisBrad said:   intex45 said:   . That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

Did you see that the OP refi'd his vehicle to 2.49% Maybe you did and think 2.49% is atrocious, but to most of the lost sheep of America it's pretty fantastic.


yes, quite a high percentage of people in this forum making under 100k but still can get the best financing

well, those that didn't take the AOR era too far

germanpope said:   BradisBrad said:   intex45 said:   . That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

Did you see that the OP refi'd his vehicle to 2.49% Maybe you did and think 2.49% is atrocious, but to most of the lost sheep of America it's pretty fantastic.


yes, quite a high percentage of people in this forum making under 100k but still can get the best financing

well, those that didn't take the AOR era too far


I've never done an AOR, make over 100k, have 790 credit score, and can't get approved for a 30k loan through Chase. Only debt I have is a 200k house that I owe 118k on. I don't understand it. Flawless credit score.

Al3xK said:   germanpope said:   BradisBrad said:   intex45 said:   . That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

Did you see that the OP refi'd his vehicle to 2.49% Maybe you did and think 2.49% is atrocious, but to most of the lost sheep of America it's pretty fantastic.


yes, quite a high percentage of people in this forum making under 100k but still can get the best financing

well, those that didn't take the AOR era too far


I've never done an AOR, make over 100k, have 790 credit score, and can't get approved for a 30k loan through Chase. Only debt I have is a 200k house that I owe 118k on. I don't understand it. Flawless credit score.


if you have a lot of credit card, credit lines built up over the last 5 years across several providers --- then you could get $30k at 0% for purchases without much trouble

I used to laugh when people called it a credit card portfolio --- but I am happy to have one if I want to do something without dipping into home equity

there were lot here that didn't do AOR's

just occasional BT's ... but we all benefited from the knowledge by building credit lines and consolidating credit lines

there were tricks that were played to boost the CL's ... but it really didn't take much to accumulate a lot without doing much

those that didn't get greedy still have everything from those days intact

Based on the price you paid I'm guessing you have the Nav + sunroof package. You should easily be able to get $ 21 K for it if you sell it to a dealer and more if you sell it privately. Take it to a Hyundai dealer and ask them what they'll give you.

Whatever you do, stay away from stealerships. Do not trade in vehicles. You get hosed nearly every time.

Thanks guys . With all the comments from here , i feel stupid to trade in my Sonata. Last weekend , i drove a BMW and i was impressed by it . This led me to ask this trade-in question . Summarizing from all the comments , i am just going to stick with it or may get a new one in 4 years.

jaganpro said:   Thanks guys . With all the comments from here , i feel stupid to trade in my Sonata. Last weekend , i drove a BMW and i was impressed by it . This led me to ask this trade-in question . Summarizing from all the comments , i am just going to stick with it or may get a new one in 4 years.

You are comparing apples (Tier 1 luxury manufacturer) to oranges (Tier 3 manufacturer). Even if you compared a 10 year old BMW to a 1 year old Hyundai, it's going to be better. [Yes, I realize the past 2-3 years Hyundai/Kia has come a long way.]

Keep the car, next time, don't jump on a car just because it's new.

Is this a trick question? Yes you can trade in your car.

The better question is "Should I trade in my car?", and given your situation I would say the answer is "No".

I have my hospital id with MD after my name. That works very well.

CorradoJr said:   You are comparing apples (Tier 1 luxury manufacturer) to oranges (Tier 3 manufacturer). Even if you compared a 10 year old BMW to a 1 year old Hyundai, it's going to be better. [Yes, I realize the past 2-3 years Hyundai/Kia has come a long way.

A 10 year-old BMW will handle better than a new Hyundai (assuming it doesn't need a new suspension) and, depending on the model, may be quicker, but unless those are your only criteria, it isn't "better." Seriously, a snob isn't going to think that a car that you bought for a small fraction of its original value after letting it age, wear, deteriorate and depreciate for a decade is more prestigious than a very decent nearly-new car. And the more practical-minded person understands that if they look in the dictionary for the phrase "money pit" they will see a photo of an aging German car. Sure there are some tremendously reliable aging German cars out there. And sometimes you can win if you buy a scratch-off lottery card.

Corrado, go sit in a 2012 Azera - unless all you care about is how it handles, you will either change your mind about Hyundais or your mind is simply closed. With the tech package (freaking annoying that Hyundai makes you buy a $4,000 package just to get a sunroof for your luxury/semi-luxury automobile), it runs under $37k with destination fee, less whatever discount you can get from a dealer. To equal the Azera's full set of features, on a 6-cylinder 535i, you'd need to add $10,000 to its $52,000 base price. The $46,900 base-priced 4-cyl. 528i doesn't even come with leather seats - it would run you roughly $58k - $20,000 more - to bring it up to the feature level of a fully-loaded Azera. The 335i will be faster, the 528i about the same (6.2 seconds to 60mph with the Azera vs. 6.4 seconds with the 528i), both 5-series will be sportier and will handle better and the 528i will get about 5mpg better mileage. But the Azera has the sexier, more modern exterior, a much longer warranty, probably better reliability (tough call - the 2012's are new models for both brands) and costs $20k less while offering pretty much the same degree of luxury features minus the luxury prestige. No, not many people are likely to cross-shop an Azera with a 5-series (it competes more with the Avalon, Taurus and ES350), but the camparison between them isn't as ridiculous as someone like Corrado would lead you to believe.

I seriously doubt any of the self-proclaimed car experts on this site who bash Hyundai/Kia have even sat in a 2011 or 2012 Hyundai or Kia, let alone test driven one.

That's great, except OP is comparing his Sonata to a BMW. And financially, it comes down to resale/residual values...

germanpope said:   Al3xK said:   germanpope said:   BradisBrad said:   intex45 said:   . That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

Did you see that the OP refi'd his vehicle to 2.49% Maybe you did and think 2.49% is atrocious, but to most of the lost sheep of America it's pretty fantastic.


yes, quite a high percentage of people in this forum making under 100k but still can get the best financing

well, those that didn't take the AOR era too far


I've never done an AOR, make over 100k, have 790 credit score, and can't get approved for a 30k loan through Chase. Only debt I have is a 200k house that I owe 118k on. I don't understand it. Flawless credit score.


if you have a lot of credit card, credit lines built up over the last 5 years across several providers --- then you could get $30k at 0% for purchases without much trouble

I used to laugh when people called it a credit card portfolio --- but I am happy to have one if I want to do something without dipping into home equity


Which CC issuer gives out 30K at 0% for purchases these days? I'd like to hear.

CorradoJr said:   That's great, except OP is comparing his Sonata to a BMW. And financially, it comes down to resale/residual values...

Not entirely. It comes down to total cost of ownership. Depreciation, maintenance, repairs, premium fuel for the BMW, etc. The Hyundai will win every time, even though it does not perform as well regarding depreciation.

As has been stated many times in this forum, if you want the driving experience of an Audi or BMW, you need to be prepared to pay for it. That is the trade off.

Skipping 4 Messages...
Al3xK said:   rmhop said:   Al3xK said:   germanpope said:   BradisBrad said:   intex45 said:   . That interest rate is atrocious, so if he's looking to reduce that, there are refi deals as others have mentioned. Other than that, his line of thinking is bananas.

Did you see that the OP refi'd his vehicle to 2.49% Maybe you did and think 2.49% is atrocious, but to most of the lost sheep of America it's pretty fantastic.


yes, quite a high percentage of people in this forum making under 100k but still can get the best financing

well, those that didn't take the AOR era too far


I've never done an AOR, make over 100k, have 790 credit score, and can't get approved for a 30k loan through Chase. Only debt I have is a 200k house that I owe 118k on. I don't understand it. Flawless credit score.
how high is your utilization every month though? Do you have very little credit cards and when you use them you close to max them out each time before paying them off? It surprises me how many people I know have cars, houses, so many things and only have 1 credit card and not a big credit profile. If you don't have much credit or rarely use a credit card it can make a big difference. My sister and her husband make like $250k+. They have 1 credit card....all cars are paid off and they have a mortgage. So they barely use any credit. I'm sure the scores are high, but just bc you have a high score doesn't guarantee approvals.


I think my revolving balances are my issue. I rack the CC up big, then pay off. I've been traveling a bunch, buying gift cards, paid taxes on CC, etc. So that probably doens't look good.

yeah it just depends man. I throw everything i can on a CC and pay it off at month end. But i have 10+ cards so I have a pretty good amount of overall credit that is available. If banks see me only using 10% of my available credit that is a good thing...vs someone who may only have 1 card and using 90% of it.

Do you have many credit cards?

For example, if you have 1 credit card and the limit is $10,000...you may use up a good portion of that limit each month. So it may appear that you use up a lot of the credit you already have. Now if you had 10 credit cards and each had $10,000 on it and they see you are using only 1 and are staying under the limit they see you have the possibility to abuse the other 9 and you aren't doing so. My sister and bro in law have ONE card...and that's it. The only loan they have is a mortgage...bc they pay for cars in cash etc. So to the bank it appears like that they don't have much experience handling a good amount of available credit. So you can have a high score bc you've paid on time etc...but if you have limited credit you won't be able to get approved for the loans you may need due to lack of credit if that makes sense?



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