jokerstars

You mean blue book? 32k like i said above.

Kiloton10

He means "Black" book its the wholesale version of the "Blue" book that is much closer to what a dealer will actually give you for a car.

I read all 3 pages of this and you seriously should just stash the 8k and keep the car. We work and sacrifice everyday and you are already saving for retirement and managing your finances better then a VERY high percentage of the rest of us.

1) You have indoor parking for it

2) If your a car guy, and you sound like it, there is no replacement for having that special car to wash and drive and just smile at. I open the door to the garage sometimes to just look at mine. As others, most notably, cdynaco said, So one does need to live a little bit today along the way. <-- this is important.

3) You could put 5000 on the car loan and at 20k @4%x60 your down to 368 a month for safety and you can always pay simple interest loans ahead without penalty as your situation improves

4) Used cars will have more maint costs, especially the high feature ones you are considering.

5) When your done paying for this Mustang you will have a great low-mileage car that you are the original owner of and can continue to be proud of for years and years.

There are more I could list but you are seriously going nuclear engineer on this. You will regret getting rid of this car within a year and that is a promise. I've made the same kind of decisions over the 30+ cars I've owned and I would happily re-write them to get my SVT Lightning or Supra Turbo or RX-7 or GTO or hell my TDI Vdub back because I bought into the money flow stuff or whatever other reason I used to convince me it was a "good idea"

DFV

That's a problem, as dealers all are looking to take you for a ride.

You will find that with this economy, there are stocks of NEW GTs sitting on dealer lots. That is your real competition. And when Ford wants to move its inventory, it will offer all kinds of incentives. That unfortunately is the kiss of death to the private seller. I know, because I was "" incinerated "" once when it happened.

jokerstars

Really appreciate help, guys. Called PNC and she said my auto loan was not simple and instead said it is 3.25 percent apr. My payoff amnt right now is 26k. I asked her if paying extra would decrease my payment amount each month and she said no.

SvT-Rich

Why don't you just put some money down from the 8 grand you have aside and refinance with another bank. That'll drop the payment.

Timberok

You could take the extra cash and re-fi your loan down to somewhere around 300- 325, a month with probably very similar interest, and with the mileage your putting on the car, in 5 or 6 years you'll have a paid for car with 30k miles on it, half of the mileage of the used cars your talking about looking at... Just a thought

cdynaco

No loans are simple interest. Any extra payments reduce the payoff, but do not change the terms of the loan (int/pmt).

So you could pay it off quicker by increasing payments, but why? 3.25% interest rate - with inflation at 2-3% (real inflation higher) means you're using other people's money for close to free. I have a number of loans & cards in that range and I'm going to drag them out till the end while keeping my cash reserves invested (market, r.e., cash). Heck you can get 3.0% FDIC checking at Danversbank of Boston. So at a .25% spread, I'm keeping my cash reserves at DNBK just in case....

You know, in my cash flow situation I have no business owning a Bullitt. But as a reward for a huge personal victory, to enjoy the thrill while I am still able, were important factors. And if things go against plan, I can liquidate it for cash. It would be a loss - but hey, all depreciating assets like cars are a loss. Yet some of those provide necessary transportation. Why not add a smile per mile?!

jokerstars

Good points.


And if a dealer isn't going to give me blue book value then I don't think I will sell the car. I owe 26k and getting offered 27k? ROFL. My original plan was to buy a an 8-15k car, use 4-5k in "profit" from selling my GT, then pay about 7-8k more on top of that to completely get rid of a car payment.


Son of a ...

karman

Jokerstars, you crack me up.
As an "older guy" like cdynaco I often plan for years in advance.
My GT purchase was a plan for a car to keep for 10-20+ years no matter what (except accidents).
My V6 could go tomorrow for the right price.
Planning.
If I were you, I would keep the 5.0 @3.25% until I just couldn't do it.
Of course, all this has more to do with the way I think than my age.
(I was planning, wheeling and dealing,and preserving special cars I liked 30 years ago.)

Freakazoid

as soon as I saw your first post, I knew this was the way the thread was going to end as well. Sorry I didn't see this thread earlier . Your guesses for what your car is worth on trade-in was very off.


There is zero way you'll get a 32k trade-in on your car, no matter WHAT kbb says and what options you have on it....you can get brand new REALLY loaded up 2011 5.0 leftovers for pretty close to 32k. While 27k may be a bit of a lowball, you certainly wouldn't get much (if any) more than 28k for a trade-in.

What this means though is keep the 5.0 and enjoy it

jokerstars

How does everyone here feel about putting 8,000-12,000 into refinancing to lower my monthly payments (instead of shortening the length of my loan)?

Based on my rough estimates, putting in that much would lower my payment from 550 to $312 if I kept my remaining 48 months, or $260 a month if I did 5 more years.

ShaneGT

in the end you would pay more for the car, but it would lower your monthly payments

Rather B.Blown

To be honest, I'm surprised they offered that much.

xlover

probably your best option

bank of america can go as low as 2.9 for a refinance on 48months, maybe lower

jokerstars

It would technically be a used car refinance, right? Link to that rate?

Ronn

Yup refi, lower your payments, and keep the GT. If crap hits the fan later, you can sell it then. Like i said, we all waited last year to get our cars, dont just dump it. Ronn

cdynaco

The past few years they seem a bit more lenient and offer the great new car rates for vehicles a year or two old. My local CU is running a special 2.9 for new and newer cars like they did last year. I went beyond 60 months to keep the pmt low and still got a 3.25.
Yours is so new I'm sure they'll give you new car rates. Surf/shop till you drop.

EDIT: here you go... PenFed looks pretty good.

https://www.penfed.org/productsAndRa.../autoLoans.asp

jokerstars

Yeah this is what I would like to do. Does anyone know how much money I'd "lose" by refinancing?

For example, the balance left on my car is 26k. Let's say I pay off 12k then refinance, leaving a balance of 14k.

What number would I have to use to calculate my monthly payments? Does that 14k include interest or no? Let's assuming I keep the remaining 48 month plan.


edit: Thanks for the link, cdynaco.

cdynaco

If the payoff says its 26k today, less 12k pay down, then 14k would be the new balance. 14k @ 2.99% x 48 = $309.82/mo.

PenFed's 2.49 = $306.74/mo.

12GTBLK

If u have equity. Refi the car for 72 months or under a personal loan or HELOC IF u keep the miles low car will still be good and it would free up monthly cashflow.

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