When I first joined this forum back in the fall I had just bought a new car - a 2010 Lexus IS-C 350. It's a great car but... At this point I wish I hadn't got it. I miss my MINI Cooper, what it said about me, and it's gas mileage. Also I miss having a paid off car. My family would have been out of debt by now (totally) if I hadn't bought this car. So in the back of my mind an idea is brewing. If I went back to a MINI, I'd at least have less of a payment. My only question is: how do I do it? The Lexus new cost double what the MINI does new. Is any dealership going to work with me? Is there a way to do it that won't be too painful? TIA for any takes on the situation and advice.
Sorry to say, but your going to take a beating on a 1 year old Lexus. "Of course, I'm not condoning this" but the only way you'll get close to retail value would be if this car was to disappear/catch on fire/get found at the bottom of a river aranoia: I too have fallen into this "get a new car every 18 months trap" before. It would never fail, after about the 8 month period I would start to regret my purchase :shakehead:
The value hit I probably be able to live with especially with the offset with interest on that loan and other debts that the difference in outgo every month would allow me to pay off.
You will be hurting from the depreciation hit. I'm guessing you are looking at a minimum of 10k hit, maybe more. Depending on how much down you put it, you might even come out under when you sell the car.
It's hard to make a decision without the facts. What may not make sense for me may make perfect sense for you. Go to the Mini dealer and see what the numbers are. You're driving a popular car; they should be able to make a decent deal with you. If not, try another Mini dealer...the biz is still hurting and the good dealers are still trying very hard to put together deals.
How about you take the depreciation hit in the form of buying a USED Mini instead of buying a new one? Take it as a lessen learned, with a little bit more money in the pocket. You could probably still get $40K for the Lexus, then buy a 2008 Mini with low miles for around $20K. No?
I'm waiting for the numbers from the MINI dealer. I'm looking at new ones that they have on the lot that they are trying to unload so the difference in what I'm seeing for 2008's and 2010's is really remarkably minimal - about 19-20 k for a non-S 2010 and about 22k for a 2010 S (both non-verts). Most of the 2007-2008 are going from 17.5 to about 19k and their isn't much diffence in options. As far as the depreciation hit goes, I'm probably underestimating it. Then again I'm not tied to it. If it is indeed 10K then I'll just keep the thing and tighten the belt a little. The more I think about it, I guess I can suffer in a Lexus lol.
Find out how much moeny you owe on the loan and how much the dealership is willing to pay you for it. Unless you made a substantial down payment when you frist took delivery of the vehicle, chances are you will have to pay quite a bit of money to get out of the Lexus and into the MINI. Fortunately, they can roll that money into the new loan for the MINI but that will probably add thousands of dollars to the loan which would probably not make it worth it. Get the facts and let us know the situation.
Also fortunately the Mini I traded in on it had retained a lot of it's value for a 5 year old car. Even if I have a 10k depreciation (which I won't eat at this point) I would still have over 10k in 'equity' above the payoff. If my math is right, which it is entirely possible it isn't, then it may be doable. The more I think about it though, the more I think it may be unwise or undoable.
Update: Got the initial number on my Lexus back from the dealer. EvoFire, your number was dead on. They said they are still working on the number but what they've come up with right now is $43k.
Tell them to make that 43k check out to your bank. After they do that, then negotiate. They will jamm you otherwise. You will think your geting 43k, but in reality it will probally be closer to 38k Have you checked the Kelley Blue Book value?
Oh my, you really are going to take a beating :gasp: Have them pay off the car before you negotiate on a new one :cig:
If you are really really wanting to get out of the Lexus and take the 10k hit, sell the car private by yourself. When you trade in the car, it isn't the matter of how much they are taking off the list price anymore, its also how much money they can make on the trade in. 90% of the time its not worth it unless you really wring them dry on the trade in. All the garbage about not paying taxes on the trade in really doesn't make too big of a difference depending on how much the tax rate is, the dealers can and will use it to their advantage. You can't blame them really, its their job, but its your duty to shop smart. Where are you from? I'm guessing some where in the states because a IS350C is well north of 60k CAD new in Canada.
I say sell it privately, its better to work with the dealer on ONE deal instead of two (trading and buying). That way they can not play with the numbers : more for your trade, less OFF the new ride or vice versa.
