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You are here: Experts > Autos > Tips on Buying Cars > Tips on Buying Cars > Help on Trading In 2 Cars
Expert: Ray Paulsen - 11/11/2009
Question
Hello,
Here is my current situation:
I am a college student and my current car is a 2008 Honda S2000 with 8,500 miles and owe about 25k(bought used). It is under my name and co-signed by my father. At this moment in time I cannot afford the payments and I am wanting to trade in for something a lot cheaper and more practical. But, I am afraid of the negative equity and how much I'll end up spending in the long-run if I do trade in. We also have a paid-off 2002 Lexus ES300 with high mileage (140k) that we want to use as a 2nd trade in (down payment). I was wondering what the best solution is.
1).Should I sell the S2000 and pay for the remaining balance? There is one problem, I was involved in an accident and there was about $6,000 in damages (rear suspension parts were damaged, and I believe axle was replaced). I know that even though the car was repaired with new OEM parts, it will still take a significant hit. 2).Keep the S2000 and sell the high mileage Lexus (which was also involved in I believe 2 accidents)? 3).Or trade in both and get a used Honda Civic sedan?
Reason I do not want to drive the Lexus is because of mechanical problems and most importantly bad gas mileage. But if my situation is leaning towards selling the S2k and driving the Lexus, I will.
Also, if the best solution is to sell, where should I sell it? Is Carmax or the dealerships a good place? I'm sure the answer is no, but I just don't want to deal with the private selling hassles: low-ballers, time consumption, and waiting for months. If I do end up selling privately, how can I maximize the price even though the cars have been involved in wrecks? How can I get the maximum amount of money out of these cars?
Any help would be greatly appreciated.
Thank you,
David P.
Answer
Hi David
You are not to far into negative factor with the Honda.
An accident repair $6000. at todays rates is not major unless frame damage was involved.
You mention affordable payments,,, refinance for a longer term will lower the payments.
You can trade both vehicle's and get a Civic, but you need to know and understand the process.
Selling the Lexus privately or dealer trade becomes a factor where tax may be an issue.
Carmax or any other dealer will be OK, you being in control having done some homework is the key for valid value.
I could go blah blah with answers, but reading into your questions there are several avenues and questions I need answered , and I would be here all day with my 2 finger typing.
Lets do this if your interested, leave a phone number with best time to call and I will give you some options. reply to raypaulsen99@yahoo.com
You being a college student you know the value of study, take a half hour and digest my website, you may pick up a few pointers or have further questions as to how the process works http://www.usedcartips.org/
PS,,, Does the accident on the Honda show up in History reports ?
Ray
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