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View Full Version : Interesting financing question...


SilentJay
06-03-2008, 04:24 PM
So here I am with my 07 GT, a little over a half a year into my 5-year deal. Now, suppose I were to want to get another car to replace the 3. I know i'll be eating the big depreciation drop since the car left the lot, but does anyone know how this'd work? Would a dealership actually pay me or Mazda of Canada against the lein on the car if I were to do a trade in/personal sale? Would this be any different if it were another Mazda i'm interested in? :D

The following is all theoretical, the prices/costs haven't been investigated, and no I haven't decided on the Fit, i'm just using it as an example to check out the math... Please feel free to correct me:

- XXXX dealership offers me $18k for my car, if I agree to buy from them
- Deal negotiated on a Honda fit ends up being about $19k-$21k
- Dealership pays $18k against my current car loan
- I pay my monthly $xxx for the remainder of the value left owing on the Mazda3, and start paying the monthly for the Fit as well

Does that sound right?
mleblond
06-03-2008, 04:47 PM
You have to clear your lien on the day you sell the car. As the bank don't have any thing to protect them ie your car. What you can do is have Honda charge you more to transfer over the remainder of your lien to your new finance contract.

I could be wrong but that's what I did :) Except with Mazda...Not a fan of honda.
SilentJay
06-03-2008, 04:57 PM
Thanks :)

Honda is just a theoretical choice :P
alhope34
06-03-2008, 07:26 PM
Honda is just a theoretical choice :P


Which is the way it should stay. :chuckle
SilentJay
06-03-2008, 08:23 PM
A lil bump in the payrate/position means I can kinda look towards a more "fun" car... *cough*speed*cough*
x_o_k_x
06-04-2008, 02:50 AM
i think its best if you sell your car privately and use those money towards your loan and then by another car and finance that
Swerny
06-04-2008, 12:48 PM
you'll take a HUGE hit...not worth it IMHO just to get a MS3.

I mean, if you were getting into a Porsche or something, maybe.
SilentJay
06-04-2008, 09:00 PM
Speed3 is definately one of the choices... I kind of figured private sale would produce a higher revenue, just wanted to figure out the logistics either way.