buying a new car help please!!?

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socom_1_2_n3_im_cooty

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ok i have a 2005 jeep wrangler x, my payment is $401 a month - i always pay $420-$450 a month now. i still owe $16,000 on it. i want to trade it in for a 2010 Mazda 5 its listed around $25,000
Should i pay more on the jeep? Try to see how much i can get for trade in? They will roll the still owed amount onto the new car.Or should i pay off the jeep total then try to trade it in then for the new car? of coarse by then it will be a newer year Mazda.... i figured im gonna be stuck with a car payment anyway so im not sure what to do. PLEASE help!!!!
thanks :)
 
Right now banks have a very hard time tacking on extra money to a new auto loan, when it is already over the car's value. You want to enter a loan being about 1/3 paid off or more ideally. This will keep you from being upside down for the majority of the loan.

If you trade in your car, they will pay you much less than the private party price.

You should have the car paid at least to it's trade in value or more if you are going to trade it in. You should have $3,000 minimum cash to cover fees, registration, tax, etc. Your credit should be in good standing 650 low end, 700-740 good, 740+ great.

I would suggest making above double payments on your car now to get your amount owed down, and then later selling it private party for it's private party value (higher than trade in), taking that money and the down payment you'll have by then, and then putting that on a new car. Note that at the end of 2010, they will want to move the 2010 stock out for the 2011 cars, so you'll still get a great deal on the car you want.
 
Right now banks have a very hard time tacking on extra money to a new auto loan, when it is already over the car's value. You want to enter a loan being about 1/3 paid off or more ideally. This will keep you from being upside down for the majority of the loan.

If you trade in your car, they will pay you much less than the private party price.

You should have the car paid at least to it's trade in value or more if you are going to trade it in. You should have $3,000 minimum cash to cover fees, registration, tax, etc. Your credit should be in good standing 650 low end, 700-740 good, 740+ great.

I would suggest making above double payments on your car now to get your amount owed down, and then later selling it private party for it's private party value (higher than trade in), taking that money and the down payment you'll have by then, and then putting that on a new car. Note that at the end of 2010, they will want to move the 2010 stock out for the 2011 cars, so you'll still get a great deal on the car you want.
 
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