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Purchasing GTI options - advice/opinions needed

Point_Blank

Passed Driver's Ed
Location
OC, CA
Can you try to refinance your current loan? Has your credit gotten any better since the loan was issued?

If you can get a lower rate, do that at least while you're car shopping. Double up/pay more on your monthly payments (if you are able to) so that you'll have more money out of the car when you sell and apply as the down. That will hopefully bring down your payments, even if you have a bad interest rate.

I tried refinancing a year ago and got offered a higher rate through my credit union. I've been just biting the bullet and paying way more for the car but at least I've paid most the interest off by now from being front loaded. Wouldn't that money be better used as just adding to a down payment?
 

Point_Blank

Passed Driver's Ed
Location
OC, CA
If your credit hasn't improved significantly, then expect to pay much higher rates. Maybe not 11% like currently, but much higher. Also, you're not going to have much equity in a high mileage car like that, especially for a trade.

If I read your first post right, you owe $5K and think you can get $3K in trade and also mention you're still positive? Those two don't add up, plus 36 months at $210 = $9K. Granted at 11% a lot of that final price is interest.

If your credit is bad to mediocre you'll have a hard time finding a decent rate and term if you are starting upside down on a 2017, 2018 or 2019.

Personally, I don't see the numbers working unless you have stellar credit and all you are really doing is rolling the deficiency of your current loan as well as the $2K in maintenance into a new and probably long term loan. Not a great financial choice.

Spend the minimal on keeping it on the road and double up payments or triple up payments and get it paid down so you're not upside down. That's the responsible thing to do.

just my .02c



$30K @ 7% for 72mos = $511/mo. based on you saying you have little credit history and how high your current loan rate is. I don't know what rate you will qualify for, I just went towards the upper end.

72 months on a new car is common and while the rate is higher than 60 months isn't too bad.

72 months on a used car, if you can find it, is significantly higher than 60 months on a used car.

Buying a 2019 w/your current situation expecting it not to exceed $30K is a pipe dream.

You don't state if you are putting any money down, but I'll assume based on the current situation you aren't. Also, might be prudent to check insurance rates on a newer vehicle, that may go up enough to consider as well.

My credit has gone up a decent amount since but I'm at the 630 range currently. I've been approved for 7.89 through my credit union but haven't shopped around more than that yet. I meant I think I could get about 3k (but probably closer to 1 or 2) back after the pay off the rest of my loan so I'm currently not under. My payoff quote is listed at 5.4k.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
7.89% for what term? for a new or used car? How much down?

At 123K miles and lots of work to be done, you aren't going to get $8K trade in on that car. If they give you just enough to pay it off that's being generous, IMO. But you just have to see what they would do. But they are very tricky in hiding the true numbers when you factor in a trade and a payoff and tell them you want a specific payment. They will be salivating if you go in like that. Bring the trade up after you negotiate a price. Then be prepared to walk away.

I had a pristine paid off trade and still decided to keep it for my GF to drive when I bought my MK7.
 
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heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
KBB lists a trade in value of $3749 - $5268 and that's factoring in it needs work as you state.

Not trying to be negative, just being a realist.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
I tried refinancing a year ago and got offered a higher rate through my credit union. I've been just biting the bullet and paying way more for the car but at least I've paid most the interest off by now from being front loaded. Wouldn't that money be better used as just adding to a down payment?

What do you have to put down and what are you "adding"? You'll either break even (not likely) or be upside down on the trade.
 

Point_Blank

Passed Driver's Ed
Location
OC, CA
KBB lists a trade in value of $3749 - $5268 and that's factoring in it needs work as you state.

Not trying to be negative, just being a realist.

$6,282
Trade-in Value
$5,267 - $7,296

That's what I'm seeing on KBB. I was going to get it priced at Carmax too. None offence taken.
 

Point_Blank

Passed Driver's Ed
Location
OC, CA
7.89% for what term? for a new or used car? How much down?

At 123K miles and lots of work to be done, you aren't going to get $8K trade in on that car. If they give you just enough to pay it off that's being generous, IMO. But you just have to see what they would do. But they are very tricky in hiding the true numbers when you factor in a trade and a payoff and tell them you want a specific payment. They will be salivating if you go in like that. Bring the trade up after you negotiate a price. Then be prepared to walk away.

I had a pristine paid off trade and still decided to keep it for my GF to drive when I bought my MK7.

7.89 for 60m term new car with my trade in as down payment. That's just the first offer I've reached out for through my credit union I can still do some shopping. Also trying to see if I can get a family member to cosign and maybe get that sweet .9 vw apr. Kinda doubtful though don't get much help from anyone these days.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
If you can do it and afford the payment comfortably, I'd say do it. But right now there are too many variables to say for sure.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
7.89 for 60m term new car with my trade in as down payment. That's just the first offer I've reached out for through my credit union I can still do some shopping. Also trying to see if I can get a family member to cosign and maybe get that sweet .9 vw apr. Kinda doubtful though don't get much help from anyone these days.

60 months @ 7.89% on $30K = $608/mo

$25K same as above = $507/mo

$20K same as above = $406/mo

What is the rate and term on a used car?
 

Point_Blank

Passed Driver's Ed
Location
OC, CA
If you can do it and afford the payment comfortably, I'd say do it. But right now there are too many variables to say for sure.
Exactly why I've been so confused haha to much veriables. Think I'll get it quoted at carmax this weekend to have something more concrete. Maybe even test drive an 18.
60 months @ 7.89% on $30K = $608/mo

$25K same as above = $507/mo

$20K same as above = $406/mo

What is the rate and term on a used car?
They only gave me one rate I think it was 9% at 72 though. I'm going to try and get one more credit boost before the purchase and I'll be making almost twice my salary end of next month. I know there's a lot up in the air but that's why I'm doing all my research now so I don't jump into a terrible purchase like last time. And want to make sure I have all the specs I want.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
$6,282
Trade-in Value
$5,267 - $7,296

That's what I'm seeing on KBB. I was going to get it priced at Carmax too. None offence taken.

Look at every scenario and see what shakes out. In my experience (I'm 51) you aren't going to be able to get out of your car and into to a new or slightly used 2018, 2017 car for $450/mo based on the information you've given.

Maybe if you can go 72 months on a used car. But the factor I see here, every lender is going to want is you putting some $$$ into the equation. I don't think your trade is going to give you much in terms of left over funds and certainly not enough that a bank or CU would be happy loaning you the entire amount of a new car purchase. If they do you will be required in most instances to pay for gap insurance.

Not to say you can't find a lender that will do this, but the rate is going to be astronomical compared to a conventional car loan from a CU or bank.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
You may be able to find a super reduced 2018, maybe not exactly what you want color/features. I know in 2017 around this time people were posting $6-9K off list left over 2017's.

That would surely help in your situation.
 

Point_Blank

Passed Driver's Ed
Location
OC, CA
You may be able to find a super reduced 2018, maybe not exactly what you want color/features. I know in 2017 around this time people were posting $6-9K off list left over 2017's.

That would surely help in your situation.

Yeah so think I'll be searching for a 2018 SE DSG DPB w/leather and hopefully helix for around 27k. Even at the very lowest raise I can make $500 payments I'm just trying to keep some money in the bank for a change haha. I'm very good with keeping my car clean but black still makes me a little nervous. If only they had the reflex silver on the mk7.5's.
 

Mk_GTI

Go Kart Champion
Location
Hellinois
Car(s)
2018 Golf R
$6,282
Trade-in Value
$5,267 - $7,296

That's what I'm seeing on KBB. I was going to get it priced at Carmax too. None offence taken.

FWIW, CarMax offered $4,000 for my 2010 GTI DSG 2dr w/ 115k miles a few months ago. Cloth, Detroits, DynAudio, Bi-Xenons, overall good condition.
 

murph3699

Go Kart Newbie
Location
Massachusetts
You may want to take this over to the Myfico forums. Lots of good credit info over there. From what I've read Capital One and DCU are pretty good with meh credit. If you can get into Navy Fed they're great as well. That's who I'm with.
 
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