I'm In, Baby!!!!
Jun 24, 2005, 09:35 AM
#31
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Originally Posted by favre95
Well when you get sick of the car 4 years from now and want something new....go wrap it around a tree and get it all paid off with your GAP. I'd rather pay 15 a month more for insurance than be that far upsidedown on a car loan....ouch!
Jun 24, 2005, 09:40 AM
#33
Originally Posted by mathgeek
I'll let the insult pass provided that you explain your reasoning precisely. And if you are unable to do so, I'd invite anyone else to explain to me why I'd be getting screwed. Before you respond, please read my other posts so that you get the whole story.
First of all, you rejoiced in how they are giving you $1500 over blue book for your Eclipse. We all know that's not true, no matter what they're telling you, because Eclipses don't even sell for their blue book value...they aren't worth anything and their value drops like a rock every month. Whatever they told you was just to get you excited about the massive loan you undertook. So, anyway, you say you're 7k upside-down on the Eclipse on this deal, so that means you were actually $8500 upside-down on the loan vs the value. I assume this happened because you got a ridiculously long loan on a car with no resale value and ended up way in the hole.
Now, on to the Evo. The 05 GSR invoice is 28.9k. With SSL, the invoice is 31k. So, you got invoice, and it's ~2k for TTL, so that's 33k. Tack on the 7k difference from the Eclipse, and you're at 40k, then subtract the 5k down and it's 35k. Ok, so 35k out the door isn't horrible, considering the shape you were in with the Evo. I walked out the door for 36k on my MR with no trade-in and paying full MSRP the day it arrived. The problem is that you didn't finance 35k, but rather 38k. Where did that extra 3k come from? And not only did you finance 38k, but you did it for a RIDICULOUS amount of time (7 years????) and at a high rate. For comparison, my rate was 3.99% for 60 months (5 years). I did not finance through Mitsu, because that wouldn't make any sense...unless they were doing some special financing deal. Why in the world would you finance it for 7 years, when you just got screwed on your last car by being 7k upside down? You should not finance for more than 5 years...if you go more than 5, it's because you can't afford it.
Put it this way, at the end of 3 FULL years, when the 2009 models are being released, you will still owe $24,291.96. The Evo has been maintaining its resale value pretty well, but by then, an 05 model will not be worth over 20k, except for maybe the MRs (just a maybe). The total interest you will pay over the life of this loan is over $9,500. That is simply absurd...
Jun 24, 2005, 09:41 AM
#34
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Originally Posted by dude
Wow. I pay 3.90% on 27,9xx for my 03 Evo for 60 months and that's $513 a month. You sure you got invoice??? From Edmunds.com
2005 Mitsu Evo VIII GSR
National Base Price $28,928
SSL (Invoice) $ 2,727
Destination charge $ 575
Invoice Total $32,230
38K + 5K=43K for Evo, minus 7K loss on trade = 36,xxx
That means you paid 11% tax on your Evo??? I don't know what sales tax on cars is in CA, but 11% is kinda hard to believe. ($32,230 x 1.11=36,xxx)
Mathematically, I'd say unless you make more than $60,000 a year net profit AFTER HOUSING, that you're in over your head. This assumes a moderate lifestyle in already expensive California and not subsiding on ramen noodles and water. I'm also curious as to what your insurance costs are and how old you are. Personally I think any term over 60 months is just lining the pockets of banks with interest payments.
My recommendation to you would be to throw EVERY spare cent you have at the end of the month to principal reduction. Check with your lienholder, some banks will let you send in another "payment" from the payment booklet and apply it to the principal, others will require you to send a check to a different address and note it "principal reduction". Either way, try and build your credit and refinance at a lower APR as soon as humanly possible.
Investment wise the only thing that will probably beat a 6.5% after tax rate of return is moderately aggressive stock trading with really good timing or real estate (esp in CA). If you can't do either of the preceeding exceptionally well, stick to reducing that principal on your loan and getting a better APR.
Mathematically there's no "Proof" that my advice would yeild anything as concrete as a formula, but take it from someone who used to be broke, and is also reasonably adept at mathematics.
2005 Mitsu Evo VIII GSR
National Base Price $28,928
SSL (Invoice) $ 2,727
Destination charge $ 575
Invoice Total $32,230
38K + 5K=43K for Evo, minus 7K loss on trade = 36,xxx
That means you paid 11% tax on your Evo??? I don't know what sales tax on cars is in CA, but 11% is kinda hard to believe. ($32,230 x 1.11=36,xxx)
Mathematically, I'd say unless you make more than $60,000 a year net profit AFTER HOUSING, that you're in over your head. This assumes a moderate lifestyle in already expensive California and not subsiding on ramen noodles and water. I'm also curious as to what your insurance costs are and how old you are. Personally I think any term over 60 months is just lining the pockets of banks with interest payments.
My recommendation to you would be to throw EVERY spare cent you have at the end of the month to principal reduction. Check with your lienholder, some banks will let you send in another "payment" from the payment booklet and apply it to the principal, others will require you to send a check to a different address and note it "principal reduction". Either way, try and build your credit and refinance at a lower APR as soon as humanly possible.
Investment wise the only thing that will probably beat a 6.5% after tax rate of return is moderately aggressive stock trading with really good timing or real estate (esp in CA). If you can't do either of the preceeding exceptionally well, stick to reducing that principal on your loan and getting a better APR.
Mathematically there's no "Proof" that my advice would yeild anything as concrete as a formula, but take it from someone who used to be broke, and is also reasonably adept at mathematics.
If I had bought the car at MSRP and put nothing down, I still would have ended up financing the same amount as I am now. I'm just out the $5K, which isn't the end of the world. Again, I am not going to mod this car at all, so it kinda balances out. All that modding does, it seems, is decrease engine life, increase the potential for mechanical failures, and diminish resale value.
Jun 24, 2005, 09:42 AM
#35
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Originally Posted by mathgeek
I spend any free time I have with my wife and kids. Reading history is a passion of mine (that's pretty inexpensive). I don't really have a hobby, per se, that requires a lot of time or money. I'm a boring guy.
Do the math....
Jun 24, 2005, 09:44 AM
#36
Originally Posted by mathgeek
For the record: $32.2K for the car + tax, license, GAP = $36,000 + $7K negative equity - $5K down = $38K financed at 6.49% for 84 mos. I don't intend to keep paying on it for that long. $200/mo. extra toward the principal every month will save me over $4K in interest. I did go through a credit union, and the rates were the same for both 72 mo. and 84 mo. loans.
If I had bought the car at MSRP and put nothing down, I still would have ended up financing the same amount as I am now. I'm just out the $5K, which isn't the end of the world. Again, I am not going to mod this car at all, so it kinda balances out. All that modding does, it seems, is decrease engine life, increase the potential for mechanical failures, and diminish resale value.
If I had bought the car at MSRP and put nothing down, I still would have ended up financing the same amount as I am now. I'm just out the $5K, which isn't the end of the world. Again, I am not going to mod this car at all, so it kinda balances out. All that modding does, it seems, is decrease engine life, increase the potential for mechanical failures, and diminish resale value.
Jun 24, 2005, 09:59 AM
#39
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Originally Posted by Mikey52
Im stuck on this part. If you dont intend to use the performance aspect of the Evo, why did you get it? A Lancer would have suited you just as well and you could have spent half of what you did.
Jun 24, 2005, 10:02 AM
#40
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Originally Posted by Warrtalon
VA, but I already did my taxes for 2004...
Jun 24, 2005, 10:19 AM
#43
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mathgeek, i know u'r very excited about getting the evo, but i think u should reconsider. i dunno how u drive ur eclipse, but if u enjoy driving it hard and want to step up to a greater car - evo, why would u not drive the evo hard then? i'm not saying u have to push it every time ur in the car, but if u'r not gonna accelerate full force, then why not just stick with eclipse, it's a fast enuf car? some ppl buy evo or sti as a "racer" status symbol and never try to find out its potential. i'm hoping u'r not one of those, but rather someone who wants that car because u know of its potential. the only problem is that if u know what it can do, why not try it? i wanted the evo because i decided to step up from my teggy, and i try to balance my driving between conservative and agressive to have fun and to make it last too. but to drive ONLY in the way that'll make it last doesn't make much sense. u dont' have to mod it (i'll keep mine stock for a long time) or track it a lot, but doing 65 all the time and under 5k rpm? 
i haven't taken mine to the track, but i like doing twisty mountain runs up or downhill and flying down the exit ramps.
i haven't taken mine to the track, but i like doing twisty mountain runs up or downhill and flying down the exit ramps.
Jun 24, 2005, 11:38 AM
#44
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Dunno.....you should have waited for the IX to hit in order to drive a real hard bargain on a new VIII (2 thou under invoice should be doable in a couple of months time I would think).
