What to do - Upgrade Time ? - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars

jaytyn · 10-21-2004, 04:54

I have a question i thought i would run past everyone here on the forums.
I have a 97 EL that I brought about 12 months ago for $12990.
Unforunatley this car now has 163,000kms and i still owe about $13000 on it.
The best trade ive been offered is $7000 on a $23490 BA XT. (most places are telling me trade in is worth about $4000 - $5000).

I have spoken to accountants and financial advisors and they all charge hundreds of dollars an still dont give me any answers.

What I am wondering is, would it be better to just keep this EL, and spend $2000 to get the aircon fixed (its stuffed). The only problem with this is that the car is going to continually depriciate, and it might only be worth $2k or $3k in 12 months time - at which point I would still owe about $10,000.

Damn cars they loose soo much money!! What would others do in this situation?

Mr Sparkle · 10-21-2004, 05:01

Fix it, hold onto it and run it into the ground. If you think a couple of grand of depreciation is bad, see what a BA XT will be worth in 12 months time!!!!!!!

Cars are absolutely shite for your finances, period. If you don't have the means to get a new one, and the one you have is still running ok, then keep it and save your money!

thek · 10-21-2004, 15:20

Yep exactly what mr sparkle said. Then for your next car buy an old classic. Or any nice car from the 70's or earlier really.

Then you will experience the joy of owning a car which not only maintains it value, but actually appreciates in value!

But I suppose you gotta like cars from the 70's. Im sure glad I do.

It would make me sick to buy a car and then for it to be half its original value in 3 years.

Citric XR6 · 10-21-2004, 16:46

If the best you're going to get is $7000 now its not worth selling. You can't loose much more on it as it has already lost most of its value. If you were to buy a $25000 car now you can bet that you'll loose at least the total value ($7000) of the old one in the first 12 months.

I've have probably lost about $50,000 in my 7 years of driving due to depreciation and my addiction to new cars. So believe me when I say I'm talking from experience.

FPV TURBO · 10-21-2004, 16:56

Hmm maybe try selling it privately for about $9,000.....

Dealers always have plenty of mark up....

If you wanna buy something decent go to the Auctions and get a BA XT for about $20,000 or a BA Futura for about $23,000. But seriously if its going to start costing you money and time getting it repaired I would let it go.

GTP610 · 10-21-2004, 17:18

I look at it differently. I have never outright owned a car, I have always financed them and the philosophy is simple..if you don't have the cash to buy a car you have 2 options. First is don't buy one and Second, finance one. Even if you have the cash, why gobble up all your own money when you can use someone else's? I drive a GTP, do you think I would put up $75k of my money when all it costs me is about $300 a week and not one cent up front as a deposit? Yep, you will choke loads of money on resale, but who gives a shit if it's financed and if you are lucky enough to write off the depreciation on tax. The bottom line is you will rarely make money on the EL, why not put your butt into a current model, finance it and enjoy the ride.

hambo_12 · 10-21-2004, 23:57

I agree with FPV TURBO, sell it privately, you should get a lot more..

Black EX-R6 · 10-22-2004, 00:33

Quote:

Even if you have the cash, why gobble up all your own money when you can use someone else's?

Fantastic idea. That way he can lose the money on the car from depreciation, AND lose a bucket more on interest.

GTP610 · 10-22-2004, 00:41

Quote:

Originally Posted by Black EX-R6

Fantastic idea. That way he can lose the money on the car from depreciation, AND lose a bucket more on interest.

M8, if you have bought a few cars in your time and have a reasonably smart accountant, you won't lose anything. Do the maths and your homework before making those sort of comments.

Black EX-R6 · 10-22-2004, 00:45

lol. yeah right. not everybody runs a business and can write off the depreciation on tax. And then their are rules for doing such a practice. Given the original posters comments I doubt he is in a position to run said write off scheme.