50 replies to this topic

[_femme333_]

I have to apologize for one tiny mistake from the past. I just found out that the car is bought as opposed to a lease. I don't know how I could have thought that it was leased so I'm sorry for making such a stupid mistake when I was asking for an advice.
I'm guessing that this way it would be easy for us to return it to the dealership right?
Is this a better news for me when we go to the dealership?
How would this work?
I know that some of yuo said that returning a leased car is more of a hassle and that we had to pay for penalties.

Thanks in advance.

[Sip]

Hahaha .. yah now it is MUCH better. Just sell the car. You will probably lose less money if you sell to a third party than to try to take back to the dealer.

Either way, you probably will not get nearly as much as you owe on the car as there is a huge depreciation on new cars as soon as you drive them out of the dealer (the value drops basically). But it will depend on how much you actually end up selling it for.

To get an idea of how much the car is worth, try www.kbb.com ... that website will tell you three things:

1. How much the dealer will pay you if you sell it back (trade in price)
2. How much you can expect to get for it if you sell to a third party
3. How much the retail value is (how much the dealer will charge for it if they were selling it).

[Anileve]

Actually, I always wanted to know what exactly is the benefit of leasing a car? I was always under the impression that it's an excellent way to throw away your money, but then again, I don't know much about it.

[Aaron]

Of course leasing a car will make you loose money ... but unless you have the thousands of dollars you expect to spend on the car in your bank account, you have no alternative to leasing. So people lease and accept to lose some money instead of having no car at all. It's basically the lesser of two evils!

A.

[Sip]

Actually, I always wanted to know what exactly is the benefit of leasing a car? I was always under the impression that it's an excellent way to throw away your money, but then again, I don't know much about it.

Leasing allows people to drive cars that are valued beyond their purchasing power. They do not own the car while leasing ... their "payments" is a lot like rent to the bank. At the end of their lease, they can "return" the car and walk away with nothing, pay off the car and own it (will cost much more than if they had originally bought it), or lease another one ...

A lot of people justify their choice to lease a car by the fact that they get to drive very nice cars and change to other new cars every few years. They end up paying a monthly fee for this.

It is also justifiable to some since cars go through a huge depreciation and if they try to make payments for several years to own the car, afterwards, the car that they own isn't worth much.

All in all, it's a complicated decision. Sometimes leasing makes sense ... sometimes it is not a very good idea.

For me, leasing has never been an option since I purchase to keep my cars for far more than just a couple of years (I've had my blazer for 7 years now and plan to keep it for at least another 3). My jeep I plan to keep for a VERY long time (maybe 15 or so years). Plus, I modify my vehicles a lot which is again something you can't do with leased cars as the bank owns them. Also, I tend to drive a lot more than 12K miles a year at times which is another constraint with leasing cars (the limit can be changed while signing the lease).

[_femme333_]

I was meaning to ask if returning the car will affect my credit history?
I took away the car from my ex-boyfriend today so I will be taking the car to the dealership tomorrow.

Should I know anything before going in? Any advice since I'm clueless at these things.

I just hope that once I return the car, then it won't affect my credit rating because I have a good credit score.

My boyfriend/fiancee payed $3,000 as a down payment...does this mean that the dealership will take the car back without paying us back the $3,000?
I really don't care even if they don't give back teh money since it wasn't me who payed for it. I wanted to know whether we will be paying any penalty fees for just returning a purchased car in 3 or 4 months?

I really wish that it would be easy as just returning the car, and letting them keep the $3,000 that was the down payment. My es is leaving teh country soon I would like to sort this out as soon as possible.

Please help!

[Sip]

Nothing will "affect" your credit unless you miss payments or default on a loan. If you and the dealer come to an agreement for the dealer to take the car back, then that will be that. Even if they take the car "back", make sure you are in good standing with the bank that you make payments to until the loan is paid off. Don't just assume it will all be taken care of automatically.

However, it sounds like you really need to have someone with you who knows about making good deals. Otherwise, the dealer will most certainly screw you one way or another. This is the main advice I can have for you.

As far as the rest, if the deal is good enough, I don't see why the dealer won't take the car back (as long as they make money on it). But don't just say yes to the first thing they say. Be prepared:

1. Know how much your car is worth (e.g. kbb.com)
2. Know how much you have paid
3. Know how much you still owe on it
4. Have an idea what kind of a deal you expect to get

Have a calculator handy and calculate things yourself. Don't let the dealer just throw numbers at you to confuse you. I don't know whether they will just take the car back at this point. It really depends on how much you have paid so far and how much the car is worth (or how much they think they can sell it for). It is also possible that they will want nothing to do with the car if it's not worth it for them to take it the way that it is.

Oh and for God's sake, DO NOT sound like you are desparate and do not let them know you have no clue what you are doing!.

Edited by Sip, 15 May 2007 - 02:14 AM.

[_femme333_]

I need you to come with me!
Or at least someone like you!

The car is brand new and it has around 2,000 miles on it....my ex payed $3,000 and the monthly payments are $358.

I'm looking at teh contract now and it says that the amount financed is $22,681 with the $3,000 down payment. The $22,681 inlucdes teh taxes and additional fees. It's a 2006 Nissan Xterra which was purchaes only in late december of 2006. The car was used in end of january only so it's in a good condition.

What do you think?
Sorry for to many questions, but i really need soem help and I want to get all teh advice that i could get before going in... I'm so bad at these things, especially negotiations

Thanks in advance
Do you think they will take it back

[Sip]

I need you to come with me!
Or at least someone like you!

Haha .. I hate dealers but I doubt you are anywhere close to Wisconsin (where I am now).

Any more info about the car you can give will help:

1. Which model is it X, S, Offroad, or SE
2. Automatic or manual transmission?
3. What kind of options does it have?

Alternatively, go here and try to put in the info about the car as much as you can. In the end, it should tell you how much the trade-in value is for the car.

So if I understand correctly, the total price of the car including everything was $22681.
You've paid $3000 down.
You've paid 5 months? of $358
If that's true, you still owe about $18,000 on the car (I can only guess what the interest is on it at this point).

If the trade-in value is more than that, they might just take the car back easily.
It really depends on what the value of the car is now (with all the options etc).

Edited by Sip, 15 May 2007 - 03:30 AM.

[DominO]

I need you to come with me!
Or at least someone like you!

The car is brand new and it has around 2,000 miles on it....my ex payed $3,000 and the monthly payments are $358.

I'm looking at teh contract now and it says that the amount financed is $22,681 with the $3,000 down payment. The $22,681 inlucdes teh taxes and additional fees. It's a 2006 Nissan Xterra which was purchaes only in late december of 2006. The car was used in end of january only so it's in a good condition.

What do you think?
Sorry for to many questions, but i really need soem help and I want to get all teh advice that i could get before going in... I'm so bad at these things, especially negotiations

Thanks in advance
Do you think they will take it back

The 3000$ is not really a down payment, it is not refundable because it is deducted from the total worth of the car,(it is not like you leased the car, it is a variable amount, you may have paid more if you wanted to) and what it remains after that is divided to come to the montly payment. Had he not paid the 3000$ the monthly payment would have been higher than that.



So your boyfriend will not have a refund, as Sip said, you owe about 18,000$ and from the depreciation value (estimated on the "new" value), don't be ready to make a deal with the dealer, first see what they offer and you might also place an advertisement to sell the car and see how much people are willing to pay for it. My sense is telling me that possibly you will get more by selling the car.



One other important note, was the amount you provided includes the interest rate? Or was the car bought with a 0% interest rate? If there is some interest rate, this will affect the dealers decision.

[_femme333_]

I don't care whether I get money out of it or not. I never payed for the car... It's him who payed $3,000 as a down payment, adn i could care less what he losses.

I only want teh car to be given to someone else.. I don't want to go through the hassles of trying to sell it or anything else. He's going to leave the country in the next few weeks so I want to get rid of the car by that time...

Also, I did him a favor by helping him to buy it so all I want is to take off my name from the contract...

Sip & Domino,
I don't know about the questions you asked.... It could be X... but not sure.
I was wondering if it would be too much trouble for you guys to quickly look at the contract (I saved it in my computer) to let me know if it will be worth while for me to take it back?
I really need help in this....Uup to the ppoint that I'm desparate!
If you guys mind, then I understand just let me know because I'll be taking the car either today or tomorrow evening.

Thanks for all of your advices...
Trust me, I definitely learned a good lesson in this!

[Aaron]

Hey femme333

One option you should consider is subleasing the car. Your ex had a lease contract of how many months? You simply switch owners for the remaining number of months on the contract ... just have to find someone who's looking for a similar car.

I'm actually in the process of subleasing a car. There are websites dedicated to this. ex: www.leasebusters.com

First try returning the car, if it doesn't work try subleasing (unless you can't ... I didn't read the details of your story)!

Good luck!
A.

[DominO]

Sip has more experience than me in that, the only experience I had with a dealer was with the car of a family member not mine. I don't owe a car. So I don't know more on that, Sip on the other hand nearly "collect" cars. So he will be on a better position to give you better clues.

I don't care whether I get money out of it or not. I never payed for the car... It's him who payed $3,000 as a down payment, adn i could care less what he losses.

I only want teh car to be given to someone else.. I don't want to go through the hassles of trying to sell it or anything else. He's going to leave the country in the next few weeks so I want to get rid of the car by that time...

Also, I did him a favor by helping him to buy it so all I want is to take off my name from the contract...

Sip & Domino,
I don't know about the questions you asked.... It could be X... but not sure.
I was wondering if it would be too much trouble for you guys to quickly look at the contract (I saved it in my computer) to let me know if it will be worth while for me to take it back?
I really need help in this....Uup to the ppoint that I'm desparate!
If you guys mind, then I understand just let me know because I'll be taking the car either today or tomorrow evening.

Thanks for all of your advices...
Trust me, I definitely learned a good lesson in this!

[vava]

Guys wait - if we read her message she says:

I'm looking at teh contract now and it says that the amount financed is $22,681 with the $3,000 down payment. The $22,681 inlucdes teh taxes and additional fees. It's a 2006 Nissan Xterra which was purchaes only in late december of 2006.

The total amount financed is $22,681 with the $3,000 down - does that mean that the car cost $25,681-$3000 down, to arrive at a total of $22,681?

Just to set it straight, the dealer won't "take it back" exactly. They will "buy" the car from you, and you in turn, will use that money to pay off the bank what you "owe". Usually this can be done in one transaction, but that is the process.

Regardless - the best advice is to know how much the car is worth to the purchaser (dealer or otherwise) and to know how much you are willing to let it go for.

For example (and this is only an example, don't trust the numbers!)
If say, you owe 18K and the dealer will buy it back it for 18K, then great. If the dealer will pay you 19K, it's even better. But if the dealer will only pay you 15k (ie. they're trying to screw you 'cause they know you're desperate) then you're better off holding on to the car so you can try to sell it privately for a better price. Otherwise you lose the car AND you have to fork out an extra 3K to pay the bank - if you don't it'll affect your credit. I know you don't want the hassle of selling a car, but that's essentially what you're doing, so arm yourself with the information you need to avoid getting taken for a ride (pardon the punn).

[_femme333_]

I looked at the contract again, but there are so many numbers written on it that I started getting a headache.

Edited by _femme333_, 15 May 2007 - 03:43 PM.

[Sip]

I could look at the contract but I think it is very important you figure it out now. If you are confused about what the numbers mean, just ask. There is no magic and there is nothing too complicated. Everything should make sense.

There should be the following things spelled out in the box titled "Federal Truth In Lending Disclosures":

1. Annual percentage rate - that's the interest on your loan
2. Final Charge - That's how much the loan would cost if you just make the regular payments till it is paid off.
3. Amount financed - I assume this is the $22681?

This is the problem vava is talking about. Usually, this is the amount after paying some money (downpayment).

Then below all that, there should be an itmized list of all the charges:

#1 Is usually the price of hte car (broken down as cash price + accessories they sold with the car)
The various fees come after that (doc fees, smog fees, tax, etc)

All the itemized stuff should come out to a "subtotal"
Then they subtract any downpayments and rebates
And that's how you end up with "total amount financed".


So actually, if your car's total amount financed was $22K and you paid $3k down, that would mean your car was probably worth closer to $25K out the door.

So now, once again, if you want to get anywhere with this, try to go through the kbb.com site and find out how much your car is worth.

[Accelerated]

I think in all circumstances you would be better off selling the car privately than taking it to the dealer. He/she isnt going to take it off your hands unless they can get a REALLY good deal.

[_femme333_]

I'm trying to find out the private Sell value on the car as well as the buy back value.

Few quick questions....

What's the Custom Bumper, Custom Paint, and Premium Wheels?
I know the meaning of course, but how is the cutom different from how most Nissan Xterras come? Should I put a mark on these boxes?
The car is navy blue, but how would I know if it's a custom paint? The bumper is plastic I think... so it shouldn't be custom made right?

Also, there's a section where I can check the Mp3 (CD) box, but as far as I know all CD players can play MP3 right? At least the new cars.

There's also a section where it says "Dual Front Air Bags" which the car has, but it's also asking for "front Side Air Bags" isn't it the same thing?

Note: The car is Nissan Xterra S 4X2

Edited by _femme333_, 15 May 2007 - 08:12 PM.

[Sip]

If you haven't modified anything on the car, then nothing should be custom. Leave those marks off.

Not all car radios can play mp3s. Usually that's an option.l It depends whether or not yours has it.

Best way to know all the options is with the "window sticker" (build sheet) that came with the car. Usually the dealers leave that in the glove box. It should have all the options.

When in doubt, leave boxes unchecked. That will let you estimate the "lower" value for your car as those options tend to raise it's value.

[_femme333_]

Here's what I came up with from teh kbb.com website.

The Private Sell value was $20,180

Blue Book Private Party Value
Private Party Value is what a buyer can expect to pay when buying a used car from a private party. The Private Party Value assumes the vehicle is sold "As Is" and carries no warranty (other than the continuing factory warranty). The final sale price may vary depending on the vehicle's actual condition and local market conditions. This value may also be used to derive Fair Market Value for insurance and vehicle donation purposes.







The Suggested Retail Value was $22,790


Blue Book Suggested Retail Value
The Kelley Blue Book Suggested Retail Value is representative of dealers' asking prices and is the starting point for negotiation between a consumer and a dealer. This Suggested Retail Value assumes that the vehicle has been fully reconditioned and has a clean title history. This value also takes into account the dealers' profit, costs for advertising, sales commissions and other costs of doing business. The final sale price will likely be less depending on the vehicle's actual condition, popularity, type of warranty offered and local market conditions.



But didn't you say that selling the car independently would have been more expensive? I mean teh value would ahve been mroe than the suggested delaer value?