thinking of switching to 5.0. - Page 3 - Ford Mustang Forum
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Originally Posted by blkandgud View Post
Just trade in your car for a fully loaded 11GT. Should be just about an even trade.
Except for the fact that he is, apparently, completely underwater on the V6.


2011 Mustang GT M6 3.31s

Matt HONEYCUTT Tune, Lethal Off-Road X, GT500 axlebacks, J&M LCAs, UPR UCA, Whiteline LCA relocation brackets, Eibach Pro-Kit Springs, Koni STR.T shocks/struts, GT500 strut mounts, SR Strut Tower Brace

Best 1/4 E/T (05/18/14 MIR - no tune, X-pipe, or UCA): 12.920 @ 109.40 mph (2.059 60ft)
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Originally Posted by Fatopotomus View Post
Except for the fact that he is, apparently, completely underwater on the V6.
We don't know that for sure.

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post #33 of 66 (permalink) Old 06-30-2014 Thread Starter
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Originally Posted by FirstFord94 View Post
This is purely a financial decision, IMO. You're trading in a fairly new car for another fairly new car. Will you owe more than you'll get if you trade in the V6 for another car? If you have to roll ANY negative equity into the GT, then DO NOT TRADE THE CAR IN.

Insurance. Are you paying $300/mo or 300 every 6 months? If you're paying $300/mo on a V6 mustang, a mustang GT won't be much if any better. Personally, I wouldn't pay $300/mo on insurance for a GT500 much less a V6 mustang or mustang GT. I would start by looking into other insurance options or even something less expensive to insure. Unless you've got a horrible driving record, when you turn 25, your insurance should go down, so you might want to wait on switching to what will likely be a more expensive mustang GT until then.

I have a '12 GT with the 3.55 rear end and hover around 20 mpg with a mix of highway and city driving. I don't drive like a clown 90% of the time. If I drive ONLY on the highway, I'd be closer to 25 mpg, but I find that these cars are VERY sensitive to throttle input. This is just another reason why you need to make sure that all of the other financial aspects of this potential switch are in line. If you can get your insurance down to $150/mo, for example, then any increase in fuel prices you might see with the GT won't be as big of a deal.
Thats interesting. Explain that first part to me though,. How could I end up oweing more. By my car costing 26000 is that basically buying a car that cost more than 26000?

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post #34 of 66 (permalink) Old 06-30-2014 Thread Starter
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Originally Posted by Fatopotomus View Post
OP,

Im going to give you some advice learned from being nearly a decade older than you. You can choose to ignore it, take insult from it, or whatever, but I promise you its well meaning input that I would tell me own son if he presented to me the facts you laid out above.

If you're obligated for $26K on a 2 year old V6 mustang and considering trading it in, you are so underwater the edealer is going to slide it in so deep and rough that you wont walk right for a week after. You are going to have $10K in negative equity before you even start talking about the new car. You do this switch and you're easily going to be $45k in debt when you roll out of the showroom. Now I dont know what you do for a living or who you are but I do know the average 24 year old in Michigan makes thless than that as a annual median income.

Also what is the length of your current loan that you are only paying $350 a month? Did you get a 72 or 84 month loan?

My honest take is that you are making financially irresponsible decisions.
This loan im in now is a 60 month loan. 6% interest rate. I see a 19000 fully loaded gt 2012 a city away. Oh by the way thanks for the advice. Im old enough and mature enough to understand the help in your statement lol.

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Thats interesting. Explain that first part to me though,. How could I end up oweing more. By my car costing 26000 is that basically buying a car that cost more than 26000?
If you dont re-finance, you're on the hook for $26K. When you roll your car in to trade it in, they will offer you 16K. So now you're on the hook for $10K right off the bat. The dealer will pat you on the back and tell you not to worry, that they will roll your negative equity into the 'deal' for your new car.

2011 Mustang GT M6 3.31s

Matt HONEYCUTT Tune, Lethal Off-Road X, GT500 axlebacks, J&M LCAs, UPR UCA, Whiteline LCA relocation brackets, Eibach Pro-Kit Springs, Koni STR.T shocks/struts, GT500 strut mounts, SR Strut Tower Brace

Best 1/4 E/T (05/18/14 MIR - no tune, X-pipe, or UCA): 12.920 @ 109.40 mph (2.059 60ft)
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Quote:
Originally Posted by akeemjvasser View Post
This loan im in now is a 60 month loan. 6% interest rate. I see a 19000 fully loaded gt 2012 a city away. Oh by the way thanks for the advice. Im old enough and mature enough to understand the help in your statement lol.
I would definitely refinance. I went through Ford Credit for 3 months at 7% in order to get $2000 (I think that was the discount anyway) knocked off the price, then switched to a credit union at 1.5%.
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post #37 of 66 (permalink) Old 06-30-2014 Thread Starter
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Hm understood. I may have to look into refinancing. I also been thinking of keeping the car and getting 3.73 gears. Since my only real problem with the car is its response when I hit the trottle

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Last edited by akeemjvasser; 06-30-2014 at 05:25 PM.
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I have a '14 GT 6sp manual, 3.55 rear. It is a remarkably docile around town driver and I'm averaging 18.4 mpg. But when I downshift and floor it, it becomes a monster. I have never driven a car with such incredible power and excitement.
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I'm reading several misconceptions here (which I think are just lost-in-translation incidents). Your interest rate and length of loan on your current Mustang fail to matter in trading in the car. What matters is the book value of the car on trade in versus the principal balance of the loan. What do you owe, and what is it worth? If you had 25% interest, it wouldn't matter on trading in the car because there are no penalties on simply interest loans (which is what you have).

The confusing part is what you wrote: the 19,000 and 26,000 thing. That doesn't compute on a 6% loan for 60 months and a 350 payment. Regardless, it isn't my business. To know what your car is worth, take a look at NADA.com to book it. Is trade in value higher than what you owe? Start there on deciding on a GT.

Just so you know, 6% is not a great interest rate. Rates vary based on credit, but dealers are allowed to sell you any loan you accept. For instance, you might qualify for a 3% loan yet agreed to a 6% loan. Guess who pockets income off that? The dealer. That'll really cost you. Call a credit union or bank and investigate what sort of rate you qualify for (based on several factors like income, debt, length of time on job, credit history, etc).

If you have any questions OP, put them out there.

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OP, just go to a dealer and get your car assessed. Of course they may lowball you, but it's better than speculating on here. Once you have a better idea, you can decide what to do.

If the cost outweigh the benefit, don't do it. Keep what you have. The v6 Stang is still a nice car to have...unless you have the extra money laying around, might not be worth it.

I got my GT 3 years ago at 24 years old. At the time it was awesome. Now, I barely even push the car hard these days, just use it for transportation. Just think will you ALWAYS need that power.

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post #41 of 66 (permalink) Old 06-30-2014 Thread Starter
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Yeah I plan to have a sit down with a loan officer from ny credit union. What through me off was what someone said about goung negative. What I took from that post was if my car is priced at 19000 and with interest it goes up to 26000 and I trade my car in and they inly give me 16000 torwards a gt priced at lets say 27000 thousand. Then the rest of the 11000 that is left over on my current loan will be added on to my new loan making the 27000 dollar gt 37000. Which isnt worth it in my eyes. But maybe im reading it wrong.

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Quote:
Originally Posted by Fatopotomus View Post
OP,

Im going to give you some advice learned from being nearly a decade older than you. You can choose to ignore it, take insult from it, or whatever, but I promise you its well meaning input that I would tell me own son if he presented to me the facts you laid out above.

If you're obligated for $26K on a 2 year old V6 mustang and considering trading it in, you are so underwater the edealer is going to slide it in so deep and rough that you wont walk right for a week after. You are going to have $10K in negative equity before you even start talking about the new car. You do this switch and you're easily going to be $45k in debt when you roll out of the showroom. Now I dont know what you do for a living or who you are but I do know the average 24 year old in Michigan makes thless than that as a annual median income.

Also what is the length of your current loan that you are only paying $350 a month? Did you get a 72 or 84 month loan?

My honest take is that you are making financially irresponsible decisions.
I quoted this post for how much truth it contains. I was in a similar situation as the OP when I had my 2007 GT and traded it in on my current 2010 GT.

I really wish someone would've given it to me straight just as the post I quoted. Sure, the 2010 is nicer than my 07 was, but the financial side is somewhat ugly.

By the time the negative equity and all the other charges were added on to the 2010, my payment went up $80 per month for a 75 month term. I'm in so deep refinancing again would be financial suicide.

The good thing is that I learned several valuable lessons:

1. Never sign papers the same day you look at a car. Think about it.

2. Read everything before signing anything. Dealers can be sneaky.

3. Never carry over negative equity. Pay it off, then trade it in.

Jim T.
Present: 2018 Mustang GT (MT): Shadow Black

Past: 2007 Mustang GT Premium (MT), 2010 Mustang GT Premium (MT)
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To pay off your current loan it makes no difference what the interest is. You only pay the principal that is left.. Not what the entire loan amount would be with interest as if you kept it the entire length of the loan. Your statement "with interest it goes up to 26000 is incorrect..that only applies to the amount it would cost if you kept paying the loan over time. Call your loan company. They will tell you a payoff amount. That is the amount you can pay off the loan for usually 30 days. You want any tradein offered to be over that amount. The pay off should be somewhere under 19000 if that was the original purchase amount and you've been making payments for awhile.


Quote:
Originally Posted by akeemjvasser View Post
Yeah I plan to have a sit down with a loan officer from ny credit union. What through me off was what someone said about goung negative. What I took from that post was if my car is priced at 19000 and with interest it goes up to 26000 and I trade my car in and they inly give me 16000 torwards a gt priced at lets say 27000 thousand. Then the rest of the 11000 that is left over on my current loan will be added on to my new loan making the 27000 dollar gt 37000. Which isnt worth it in my eyes. But maybe im reading it wrong.

2011 V6 Convertible, Premium, Red Candy, White side stripes, Pony badges on fenders, auto headlights, lower fogs coming soon.
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Quote:
Originally Posted by tommy9946 View Post
I'm reading several misconceptions here (which I think are just lost-in-translation incidents). Your interest rate and length of loan on your current Mustang fail to matter in trading in the car. What matters is the book value of the car on trade in versus the principal balance of the loan. What do you owe, and what is it worth? If you had 25% interest, it wouldn't matter on trading in the car because there are no penalties on simply interest loans (which is what you have).

The confusing part is what you wrote: the 19,000 and 26,000 thing. That doesn't compute on a 6% loan for 60 months and a 350 payment. Regardless, it isn't my business. To know what your car is worth, take a look at NADA.com to book it. Is trade in value higher than what you owe? Start there on deciding on a GT.

Just so you know, 6% is not a great interest rate. Rates vary based on credit, but dealers are allowed to sell you any loan you accept. For instance, you might qualify for a 3% loan yet agreed to a 6% loan. Guess who pockets income off that? The dealer. That'll really cost you. Call a credit union or bank and investigate what sort of rate you qualify for (based on several factors like income, debt, length of time on job, credit history, etc).

If you have any questions OP, put them out there.
Quote:
Originally Posted by Clueby View Post
To pay off your current loan it makes no difference what the interest is. You only pay the principal that is left.. Not what the entire loan amount would be with interest as if you kept it the entire length of the loan. Your statement "with interest it goes up to 26000 is incorrect..that only applies to the amount it would cost if you kept paying the loan over time. Call your loan company. They will tell you a payoff amount. That is the amount you can pay off the loan for usually 30 days. You want any tradein offered to be over that amount. The pay off should be somewhere under 19000 if that was the original purchase amount and you've been making payments for awhile.
You guys are absolutely right and I mis-stated a couple of the aspects of the loan. Yes, they would pay off his loan principle on the trade so he wouldnt take the full interest hit on a trade.

Still though, its likely the dealer isnt looking to do him any favors and rolling negative equity into the new loan is just not a good idea.

2011 Mustang GT M6 3.31s

Matt HONEYCUTT Tune, Lethal Off-Road X, GT500 axlebacks, J&M LCAs, UPR UCA, Whiteline LCA relocation brackets, Eibach Pro-Kit Springs, Koni STR.T shocks/struts, GT500 strut mounts, SR Strut Tower Brace

Best 1/4 E/T (05/18/14 MIR - no tune, X-pipe, or UCA): 12.920 @ 109.40 mph (2.059 60ft)
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One thing is for sure, you will never get in a 5.0 and say “I wish I had the V-6”. I average 24.4mpg with my 2012 GT and drive it pretty hard.


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