Originally Posted by dtwwest
I did trade my 05 V6 for a 06 GT and guess I did better on trade in than I thought - $15,000. but it did have only 9,800 miles. I also got $1,000 off the sticker because where I work is a Ford Participating Partner and the dealer knocked another $1,200 off.
My payments went down $85 a month because of the 0% and longer term. Also, because of the additional safety features - antilock brakes, side airbags and active antitheft my insurance is the same. I tried to come up with a reason not to trade and the only one was the longer term. But I didn't consider it much a reason because of the 0%.
I did talk to another dealer, and they offered $500 over dealer invoice, $28,000, and trade-in at $14,500, but with tax of $2,170, and the lost in equity of $4,200, (I would have to re-finance $4,200 from the loss on my car, $18,700 owe - $14,500 trade-in = $4,200) that brings finance to around $34,500, or $479 for 72 months.
Now this a great deal, however, I'm looking to buy my first house in the next year, and if I bought the GT, I would be about $15,000 extra in debt. That may not be much, but when coming to finance, the bank calculates debt-to-income ratio, and that could be .25%, or a quarter point extra on the home loan. That extra amount in mortgage payment could be spent on a higher monthly payment on a GT, if I decide to wait one year when I purchase a house. If Ford offers 0.00% on 2007's next year, I'll be in a financially better advantage; I could sell my car on the open market waiting for a better price than trade-in and I'll have a brand new GT in 2007.