Any Car dealers out there?

[singe89]

Good luck! If you really want the lincoln then you know what to do. I will say that this is the reason I stopped buying new cars. I took a bath on a few cars. Now I try to buy 1-2 year old certified preowned cars with 100k+ mile warranties and make sure there are no major design changes in the next couple years. The major depreciation has been taken by the first owner and you can enjoy the car for 4-5 years under warranty and still have good resale value. No matter what you're going to lose $ on cars but if you can enjoy the car and minimize the deprecation then it's a win/win.

[Jimsdad]

Paul,

Shannon is right.

The easiest way to deal with your negative equity would be to move into a lease (say 36 or 48 month.) When your lease is done, you move on. In the meantime, you drive the vehicle that you really want.

Enjoy

[1William]

In reading similar threads one of our fellow posters put it well. "Ride out or buy out". To me this sums it up. Many opinions on the timing and purchase and lease but they are all losers in the car game. Just how much is the question. Grab a Consumer Reports and look at residual prices over the next 5 years and balance that with what you pay and what it would cost to buy out. See what the car is worth in that time and see that dollar amount. In the end I will bet it is close and you have a car you don't like and will sell/trade as soon as possible.

[East Bay Rider]

Originally Posted by singe89

Good luck! If you really want the lincoln then you know what to do. I will say that this is the reason I stopped buying new cars. I took a bath on a few cars. Now I try to buy 1-2 year old certified preowned cars with 100k+ mile warranties and make sure there are no major design changes in the next couple years. The major depreciation has been taken by the first owner and you can enjoy the car for 4-5 years under warranty and still have good resale value. No matter what you're going to lose $ on cars but if you can enjoy the car and minimize the deprecation then it's a win/win.

I used to think that too but when you see the dealer's markup from what the car's residual trade in value was to the car's new certified pre-owned selling price, you can't help but feel screwed.
Your better option would be to lease for X years at 0%. You only pay depreciation when you lease and you'd suffer that anyway if you bought. Then, at the end of the lease you can buy your own used car at SIGNIFICANTLY less than you could buy someone else's through the dealer. Naturally the same factory warranties are available to you through the dealer or online.
Basically buying certified pre-owned is just a way for the dealership to mark up and re-sell a car for a second time. You'd be better off buying out someone's lease directly if you could find the car you want.
To further drive this point home I'll cite an example:
While my wife was car hunting recently she test drove a CPO car she liked (2013). Later we found out that the selling price of that CPO car was $5,000 more than the residual value of the identical brand new car she ended up leasing.
'Residual value' is simply a term for the car's value at the end of the lease. Selling price minus depreciation equals residual value.
Now you just know know that the residual on the used 2013 was even less than the residual on the brand new 2015 so in reality that dealer markup may have been even more than $5,000.
So now my wife has the option to keep or return the car after 3 years. If she returns it, no big deal - we'll move on to the next. If she wants to keep it she can purchase it for less than she could buy it used off the lot and she has the benefit of knowing it's history and how it's been maintained.

[cdmorenot]

It is only money and life is short, however, you have the draw the line somewhere. Negative equity is about the same as turning money into thin dust and letting it free - I am in a similar situation with a Volkswagen CC with about $6K in the hole. Not much, but it is enough for a gently used DJII.

I wish my son was of age so I could lease him a Corolla and spread out the hit but that isn't the case. So I'm going to have to hold on to it, skip my new every three cycle twice and run it to the ground.

Next time I'll be smarter about it and get something that has already depreciated to a point where it won't matter to me anymore and buy cash.

[gmh1013]

One of the reasons i have never bought only one new car in my 58 years....i cant stand losing that much money.

[VICI]

Originally Posted by wantonebad

Paul trading it in is going to make a bad situation worse, try to sell the fusion privately, will still be bad but you can lessen the blow. Either that or suck it up and drive it for a few more years. Both cars have lousy residual's your going to take a bath on either one short term. best bet is to drive the one you already have into the ground. JMHO

Very well put.

This is your best option.

Glad to hear your grind is doing better. 🍻

[Thatguy]

Originally Posted by East Bay Rider

I used to think that too but when you see the dealer's markup from what the car's residual trade in value was to the car's new certified pre-owned selling price, you can't help but feel screwed.

Your better option would be to lease for X years at 0%. You only pay depreciation when you lease and you'd suffer that anyway if you bought. Then, at the end of the lease you can buy your own used car at SIGNIFICANTLY less than you could buy someone else's through the dealer. Naturally the same factory warranties are available to you through the dealer or online.

Basically buying certified pre-owned is just a way for the dealership to mark up and re-sell a car for a second time. You'd be better off buying out someone's lease directly if you could find the car you want.

To further drive this point home I'll cite an example:

While my wife was car hunting recently she test drove a CPO car she liked (2013). Later we found out that the selling price of that CPO car was $5,000 more than the residual value of the identical brand new car she ended up leasing.

'Residual value' is simply a term for the car's value at the end of the lease. Selling price minus depreciation equals residual value.

Now you just know know that the residual on the used 2013 was even less than the residual on the brand new 2015 so in reality that dealer markup may have been even more than $5,000.

So now my wife has the option to keep or return the car after 3 years. If she returns it, no big deal - we'll move on to the next. If she wants to keep it she can purchase it for less than she could buy it used off the lot and she has the benefit of knowing it's history and how it's been maintained.

Well said. Leasing is not as bad as some people say. It give you options when the lease is up.
Best bet is to purchase or lease a brand that does not tank in value as much as some do.



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[azguy]

Originally Posted by locutus49

Kinda like buying a new precious metal Rolex from an AD. Sorry for the bad news.

x2, and you're surprised by that

That's one reason I have not bought a new car in 15 years, by 2-3 years old and let some other sap take the hit.

[rr-nyc]

Originally Posted by swils8610

I run 2 dealerships. Lease the Lincoln and the negative equity is over with in 3 years.

^this




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[TheVTCGuy]

thanks everyone, and I want the entire TRF team to know..

Danny83 offered to have a conversationw with me yesterday about the situation, he is a professional and a gentleman in every sense of the word, sacrificing his valuable time to talk with me about my dilemma. His knowledge of the car industry is phenominal, and he actually used his ability and contacts to find me a great car and possible deal. Not sure what will happen but i can't express how much i appreciate his assisting, and just to be clear, HE DOESN'T MAKE A PENNY out of this assistance; it's all from his kindness. If you are looking for a car, contact Danny, he is the best and we are fortunate to have him here on TRF!

[wantonebad]

Originally Posted by TheVTCGuy

thanks everyone, and I want the entire TRF team to know..

Danny83 offered to have a conversationw with me yesterday about the situation, he is a professional and a gentleman in every sense of the word, sacrificing his valuable time to talk with me about my dilemma. His knowledge of the car industry is phenominal, and he actually used his ability and contacts to find me a great car and possible deal. Not sure what will happen but i can't express how much i appreciate his assisting, and just to be clear, HE DOESN'T MAKE A PENNY out of this assistance; it's all from his kindness. If you are looking for a car, contact Danny, he is the best and we are fortunate to have him here on TRF!

No question Paul, Danny is a stand-up guy and valuable member!!

Glad it seems to have worked out for you! Nice work Danny! seems like a couple of adult beverages are in order at some point between you two!