I'm ok now I guess, but because of my negative equity I had on my truck my new 06 Focus is pretty expensive. It's only been 2 official days since I signed on the dotted line and I guess I was wrong about the 3 day Florida law vehicle return policy because they wouldn't let me return the car.
Anyone else ever experience this? I like the focus but for the money it's costing me it's hard to justify.
I bought a car once and didn't realize it at the time but as I signed the loan I was already upside down on the car with no trade in. Guy sold me the car for at least $3000 over its actual used value. It was 3 years old with 29K and I thought it was a decetn price (Ilearned my lesson with that car). Anyway I had it for less than a year and like 8 months later I traded it in for a 00 focus sedan. The car now had 50K on it and the Focus had the same. Because I was now upside down on the car I hade to take the max the bank would alow me to take plus I hade to put like a grand down on the Focus. I felt good about this trade because the Focus was just a better car and another year with the original car and I would have put it into the ground still owing on it. Anyway I paid as much on the Focus as I could, sold my truck and put that money down on it and than when I finaly sold the focus (about 1.5 years later) I sold the focus with 80K and only hade to come up with about $600 to toaly pay it off and I now have no neg equity on a car.
If it makes you feel better a lot of people are upside down on there cars and usually it happens when they leave the lot. I too wanted to return the first car but the papers were signed and there was little I could do. If I fought hard enough I could have probably gotten them to take the car back but I doubt it. I know know there a shady used car lot and I do not deal with them anymore and I bad mouth them whenever I get a chance. But on the upside the car they sold me was a good one because it took all the abuse I gave it.
Most cars will be upside down for the first year or so. At least on new cars. As soon as you drive it off the lot subtract $1K. That's how bad it is. The key to staying in the positive is to keep the car for longer then a year, that is of corse if you weren't upside down on the trade in. One of the big reasons a car will stay upside down for a year is the intrest gets paid off first on the loan. So very few of your hard earned cash is going to the pay off of the car for the first year. The best way to get out from under your situation is to keep the Focus and pay it all off.
I'm sorry this is panning out to be a poor experience for you, but - If you don't mind me being nosy (just trying to help out here). Did you finance through the dealer? Were you able to get a rate less than 6%?
If you answered yes to question 1 - go find yourself a credit union ASAP and tell them you need to refinance.
If you answered yes to question 2, you're doing ok.
The Focus is considered an entry level vehicle and looses it's value immediately and quite significantly. If you've taken a loan out for less than 5 years, that is a bonus, only if you can afford the payments and insurance. If you've financed for 5 or more years try to hit those payments as heavy as you can - double them as often as possible.
I do highly recommend refi - you can save a lot of money and make the payments much more affordable in the long run.
Best of luck to you and I hope you can see your way clear on the cost of the car.
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I think he's SOL on refinacing the car through a credit union. Remember the credit union is only going to allow the value of the car to be refinanced not the amount he has the loan for. The dealer will let you go upside down becuse they also get your car in trade so they make out. The bank doesn't opertate that way. If you don't pay for the loan and they end up taking the car then they lose all the extra money the car wasn't worth.
I think everyone goes through a learning experiance when dealing with buying cars. The best way to look at it is know the value of the car/truck before you go to trade it in. If you know it's upside down the best plan of action is to wait until you pay enough of it off to make it even again, or better yet pay it off. Like I said before never try and trade a car in that you have had for less then a year more times then not you will take a loss.
A good example is I also have an 03 Sport Trac and I'm going to be getting rid of it due to the gas and the monthly payment being so high. But I have held on to it for 3 years so I don't have this issue. Now it's worth the same amount I owe, so I won't have any issues with getting rid of it. By the way anyone want to buy an 03 sport trac 19K miles for $17K? LOL
Last edited on Tue Jul 11th, 2006 12:30 pm by smoknzx3
actually smokin, you can find some very generous CU's out there. My CU loaned me 100% of the value of my car when I refinanced and I was very upsidedown on the original loan, but my car was in great shape and had low miles, but if you do it ASAP you might luck out on a great deal.
Shop, shop, shop and next time you're looking for a car, I highly recommend you haggle much more & bring these blood sucker salesmen down a peg - I've gotten very good at it.
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Thanks for the replies and the support. At first I got 3.9%, but they only have me 12,500 on my Avalanche. When I went back to try and return the car they said that wasn't an option but they could put me on another plan which would give me a little bit higher apr (5.3%) but they would give me 14,500 for my truck. My payment dropped from 412/month to 399/month for 60 months. I'm actually paying about 2 grand less when it's all said and done but the payment still is pretty high.
Focus19 wrote: Thanks for the replies and the support. At first I got 3.9%, but they only have me 12,500 on my Avalanche. When I went back to try and return the car they said that wasn't an option but they could put me on another plan which would give me a little bit higher apr (5.3%) but they would give me 14,500 for my truck. My payment dropped from 412/month to 399/month for 60 months. I'm actually paying about 2 grand less when it's all said and done but the payment still is pretty high.
Chalk it up as a learning experience....
Well, you're doing ok in the apr realm, but that kind of stinks that they took that 3.9% away...it's all the way the ball bounces though - those payments were steep considering the jump in the cost of living and the lack of increases in wages (another rant for another time).
I'd say it is a life lesson, but don't close your eyes to opportunities - do you tend to put a lot of miles on your car? I know I do, but I'm still sitting upright on my loan. I've paid my price back when I financed my first vehicle. It was a very well kept, low milage 4Runner and it was still a fabulous truck when I got rid of it. Alas, the body began to rust and the cost of gas went through the roof...HA! I say that and it only cost me $25 to fill that tank - now I'm sure I'd spend at least $50/ tank and my focus has managed to cost me in the $40 rang to fill.
I hope you stick around focus19 - post away!
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Yeah I plan on stickin' round here and in the Focus. I'm probably going to just ride the loan and car out for the 5 years. As soon as I get to moddin' and makin' it my own I'm sure I'll appreciate it even more.
Ford wasn't offering 0% on the Focus, but on some of the other vehicles they were. I qualified for the 0% with Chevy, but I ended up not getting the Cobalt.
I got the "A" plan on my car so I got a real good deal. The wifes dad works in the Focus plant in Detroit. I bought it in 03 and paid $10,900 out the door. I owe $4K on it now and it's worth $8K. Then again if I add up all the money I put into it I wouldn't be to the positive. LOL
Last edited on Thu Jul 13th, 2006 08:51 am by smoknzx3
I paid $10k for my used 03 ZX3 Duratec with 5k miles on it - mind you I drove from NH to NJ to get it. I've hammered the payments down on it and owe much less than it's worth at this point and hope to keep it that way.
____________________ Get in, Sit down, Shut up and HANG ON!
