What would you do?
My car situation is a bit of a long story, so I'll do my best to shorten it. In 2005 I sold my Camaro SS which I owned and I leased 2005 G35 coupe. My G35 was hit and run twice, egged twice, someone kicked my door, and someone tried to rip off the sideview mirror. These were all separate incidents. I was tired of fixing the car and decided it was cursed. So in July of 2007 I swapped the leased G35 out for a 2007 Mustang GT. This is my current car. Discussing all the details would take too long but the horrible part is that I'm upside down in the mustang to the tune of about $7,000 (could be more, not too sure). So I'm kicking myself for being in this situation now, but at the time I just had to get rid of the G35.
I now find myself DESPARATELY wanting a smaller lighter car to do auto-x and track days. I've narrowed my car choices down to the mx5, and rx8. I'm well aware that I'll take a hit if I get rid of my Mustang, but at the same time I hate that I'm overpaying on the mustang and I've grown to hate the mustang. It's like driving a 1970s cadillac compared to the mx5 and rx8.
I, like most of you, am totally obsessed with cars. I hate that I'm spending money on a car that I just flat out get zero enjoyment out of. Financially, getting rid of the mustang is a bad move (but buying any car is a bad move...). So I'm faced with a few choices:
1) suck it up and keep the mustang and be miserable
2) buy a used NB mx5 for $10-13k (which would end being around 20k when it absorbs the cost of the mustang) and "theoretically" keep it for the long term to be a track toy. I just don't know how a 2002 60k mile NB would be for a daily driver...
3) buy a 2009 rx8 sport for $23 (which would end up being around 30k when it absorbs the cost of the mustang)
4) keep the mustang and find a used mx5 for $6,500 or less to be a track toy and drive it to work when I felt like it (though I would need to figure out where I can park a third car...)
I'm just currious to hear other people's thoughts....
I would take the hit on the Mustang and get out from under the payments, once you are upside down on a car you will always be upside down. Pay cash for a replacement, if you roll what you owe into the new car you will be even deeper in the hole and paying interest on a car you don't have anymore. But don't go by me, I'm weird that way. I am making payments on a pickup that I don't need and spending my allowance on a Miata I paid cash for.
Stripe Das Sape
We are leading the world to democracy by example.
Find a NA for way less than 6,500, and have a ball.
That way you would have hardly any miles on the Mustang.
I believe there is still a really nice triple black NA for sale locally.
It'd be a real shame if your Mustang was found smoldering somewhere in the Trinity River bottoms.
The Mustang will never be worth more than it is today. If you hate it that much unload it and cut your losses.
Sale pending and going out of state. Just waiting for the $$$ to show up.Originally Posted by Rogue
Thanks for the bump Stevan!
But what about the carbon footprint? Just leave the keys in it.
Stripe Das Sape
We are leading the world to democracy by example.
My 2000 70k mile NB is an awesome daily driver.
"Racing makes heroin addiction look like a vague longing for something salty" - Peter Egan
I've thought about it :). I keep hoping a crane will fall on it when I'm not in it. The other day I was driving and someone almost hit me and I swerved out of the way. Afterwards, I said "why did I just swerve!"
Creek: would you ellaborate a little on your suggestion? Are you saying I should sell the mustang, pay off the differencel, and buy another car with cash? Because if so, I don't have 7k in cash plus an additional 6-15k cash to buy another car...
Buy a cheap NA. Or you could try to swap someone on Craig'slist, though I don't know how that would work with financing and such.
Chris
91 Miata (#3), Rattle Can Grey(previous owner), Greddy Turbo @7 PSI and Manifold (Only items remaining from the kit), TDR I/C, Godspeed Radiator, RM DP, 2.5 Enthuza Bipes, BEGI AFPR, ACT, Lightened Stock Flywheel, Yellow Konis, FCM on Stock Springs, HDM2S, MOMO Wheel, Ratsback Front CF Lip, Black Rota's on EcstaXS, Corrado Rotors & XP8's on Front w/ 1.8 rears.
http://austinmiata.com/
Wishlist: Megasquirt to run 12-13 PSI, White non-spray paint job, 8" 6UL's, RX7 LSD, Evans Waterless Coolant
I said don't go by me.You will have to take a loss on the Mustang eventually, continuing payments and interest will compound the situation. I didn't mean to be flippant, I just said what I would do. What I need to do with my pickup actually.
Stripe Das Sape
We are leading the world to democracy by example.
OK, go buy a used Miata, and roll over the cost of the Mustang. Then go to the law firm advertising currently on the radio (92.5 or 93.3, or 97.1), and go sue the hell out of finance company that rolled over the negative equity. Something about "truth in lending laws."
Actually, I'd have to give you the advise I gave my son, of course he didn't take it, so you probably won't either. Keep the car you have until you are no-longer upside down. New Car "itus" is a financially debilitating disease that will haunt you for a long time, if you don't nip it in the bud. But at least you don't have the disease as bad as Ken-O does. Do a search on him and you'll know the true meaning of being upside down.For him, cars are like nose candy and he can apparently afford to pay, and pay, and pay. We keep talking about an intervention
'08 Copper Red GT PRHT, '06 Accord EXL, '05 Dodge Magnum R/T, '01 V8 Dakota for pulling 2135 Chaparral.
There's this one too... http://forums.dfwmiata.com/showthread.php?t=13517
If you're looking at getting something else financed with rolling in what you owe to the mustang you'll just stay upside down. And not be in any better position when it comes to replace the new car. I'd throw as much extra at the mustang as you can and try to pay it off sooner, rather than buying something else. You mentioned 3rd car, what is the 2nd car and what do you owe on it? Good luck!
Smile
93' LE #1136 - FM II
250k miles
This isn't going to be what you want to hear, but this is the smartest idea. Pay down the note on this car as aggressively as you can, and hold onto it until you can at least break even on the sale/trade. Otherwise, you're doomed to spiral ever deeper and deeper into debt on cars, because you keep rolling accumulated debt into each successive purchase.
Will anyone even float a car loan these days for 150%+ of the actual car's value? You might have gotten away with that a year ago, but good luck doing it in today's credit market.
See comment above for #2. Also, I would also urge you to avoid trading in your upside-down Mustang on another brand new car that is at the steepest point in the depreciation curve. That's how you got here in the first place. Try to learn from your mistakes instead of repeating (and compounding) them.
If you "have" to trade your Mustang in on another car, try picking something that is at least three to four years old so that the depreciation rate is starting to slow down. Doing this - and actually holding onto a car long enough to pay it off - are the only ways you're ever going to get right-side up again.
Either that, or you can resign yourself to paying progressively more and more for less and less car, every time the urge to change cars strikes you. That's assuming that lenders will continue to enable your debt problem, which isn't something I'd bet on in our current economic climate. In fact, I'd be surprised if you could find lenders right now that would be willing to make scenarios #2 or #3 a reality.
Will you be financing this car as well? I think financing anything else while you're $7k+ upside-down in a depreciating asset sounds like a bad idea in this economic climate, but that's just me.
Last edited by altiain; 01-06-2009 at 04:16 PM.
Iain
"We don't stop playing because we grow old, we grow old because we stop playing." - George Bernard Shaw
Double up your payments on the Mustang until it is paid off. Hell, I'd go so far as to eat nothing but Top Ramen for a year so I could triple up on my payments. This is one of those pay me now or pay me later situations. You are much better off sucking it up and dealing with it now before interest digs you an even deeper hole.
What's your other car and how long would it take you to raise 10k? I'd drive just one vehicle for a year or two if it meant getting out of debt.
Thanks for all the advice guys. I know the best answer is to keep my Mustang. In the last couple of months I have been making larger payments than required to try and close the gap up. However, the problem is that the car is depreciating and it's hard to catch up. Add in the fact that new body style is around the corner for the Mustang and it's a hard game to win...
How hard is it to find an NA that will be reliable? I'm hesitant to buy a car that is approaching 20 years old when I don't know enough about them to pick out a good one that has been treated right and had the requisite servicing done. Are there members on the board that would help me inspect used NA's? If I do anything other than just keep the Mustang, buying an NA might make the most sense. I can just write it off as a part of my car hobby and then I won't have to worry about it breaking at the track and not being able to drive to work on Monday...
How much money do you think you I need to spend on an NA to find one that I can drive around a lot and do auto-x and track days? How many miles is too many on an NA?
My other car is my wife's car (Honda Pilot) and it's paid for and not going anywhere. My car payment is the only one we have.
Dude... seriously. You need to listen to what I'm about to say. Trading in the Mustang on any car is just going to put you deeper in the hole. Anything you buy is going to depreciate. If you buy something brand new, it's going to depreciate even faster than your 3-year old Mustang. Really.Thanks for all the advice guys. I know the best answer is to keep my Mustang. In the last couple of months I have been making larger payments than required to try and close the gap up. However, the problem is that the car is depreciating and it's hard to catch up. Add in the fact that new body style is around the corner for the Mustang and it's a hard game to win...
Don't you get it? You're never going to catch up by buying something else. All you're doing is putting off the inevitable.
Last edited by altiain; 01-06-2009 at 04:54 PM.
Iain
"We don't stop playing because we grow old, we grow old because we stop playing." - George Bernard Shaw
Watch CraigsList religiously everyday several times a day. Might also watch all of the lists in state as well. Deals are there to be had. If you already have a "plush" daily, buying an older NA shouldn't be as hard to put up with.
I wouldn't go by mileage as an issue to keep you away from any NA. Some people on this board have NA's in great condition over 200K miles. The main problems I would stay away from are rust, frame damage, or possibly a bad top (though on a cheap enough example, it shouldn't be a deal killer).
Engines and trannys can be had reasonably, especially if you are handy enough to install yourself.
I'm not as up to date on the current miata market, but I would say you might be able to get a decent example for around $2K cash. Under that and expect to do some work. Over that and expect to get a newer year (which are just heavier anyways
Chris
91 Miata (#3), Rattle Can Grey(previous owner), Greddy Turbo @7 PSI and Manifold (Only items remaining from the kit), TDR I/C, Godspeed Radiator, RM DP, 2.5 Enthuza Bipes, BEGI AFPR, ACT, Lightened Stock Flywheel, Yellow Konis, FCM on Stock Springs, HDM2S, MOMO Wheel, Ratsback Front CF Lip, Black Rota's on EcstaXS, Corrado Rotors & XP8's on Front w/ 1.8 rears.
http://austinmiata.com/
Wishlist: Megasquirt to run 12-13 PSI, White non-spray paint job, 8" 6UL's, RX7 LSD, Evans Waterless Coolant
You can find NA's in great condition for under $5k all day long. Granted the dealers will want more, but your paying for convenience. NA's are really reliable. If looking at the early NA's, stay away from '90 or early '91 models, unless they have already had the small-crank engine replaced with a large crank engine, as these cars had issues with a short/small crank that will give way. Here, size does matter!
Also, '93 was the last year for the 1.6L engine, these are the lightest cars and really love to rev up high, and they had a true oil pressure gage. Beginning in '94 and through '97 all US models had 1.8L engines, and had no issues that I'm aware of. ODB-II was introduced on the '96 models. BTW, each model year grew in weight. Personally I like the 94-97 models, they are stronger with regards to rigidity, power, rear ends, and the like. These cars will go 250,000+ miles, as long as you follow the maintenance plan. The biggest pain in the butt is doing a timing belt every 60-70,000 miles and it seems to come about quickly. However, I've got to where I can do it in 4 hours or less, working by my self.
'08 Copper Red GT PRHT, '06 Accord EXL, '05 Dodge Magnum R/T, '01 V8 Dakota for pulling 2135 Chaparral.
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