Financing second vehicle before paying off first

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Warmachine

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Hi Guys

As is always the case with us young people, I got myself a fast car, financed, about over a year or so ago. With the unpredictability of life, my longtime partner and I are expecting a bundle of joy... One way of cutting down unnecessary maintenance, installment, insurance costs etc, is to sell the car privately or trade it in for a cheaper one...

Now, that's unfamiliar territory so any and all opinions are welcomed...

I'm well aware of the financial shortfall I'll experience courtesy of interest on my existing car loan, we're planning on putting down both our bonuses into settling that as quickly as possible. Rookie mistake I know :( Such is life.

Has anyone else went through a similar situation?

Thanks.
 
As you haven't given us figures, I would guesstimate that you would have to finance the shortfall on a new car. So in theory you could buy a cheaper car and at the end of the day end up paying the same. So for you to have a considerably smaller debit order, you would have to get a really cheap car.

This is of course just speculation as there are many factors to keep in mind such as depreciation which is again linked to factors such as car brand etc.

Personally I would try to keep the car until you reach a point in time where the trade-in value is more than the financed amount.
 
Also, time for a name change? Diapermachine perhaps? :p :D
 
Warmachine said:
Hi Guys

As is always the case with us young people, I got myself a fast car, financed, about over a year or so ago. With the unpredictability of life, my longtime partner and I are expecting a bundle of joy... One way of cutting down unnecessary maintenance, installment, insurance costs etc, is to sell the car privately or trade it in for a cheaper one...

Now, that's unfamiliar territory so any and all opinions are welcomed...

I'm well aware of the financial shortfall I'll experience courtesy of interest on my existing car loan, we're planning on putting down both our bonuses into settling that as quickly as possible. Rookie mistake I know :( Such is life.

Has anyone else went through a similar situation?

Thanks.
Click to expand...

It's only been a year, you probably owe more than the car is worth.

Is it not possible for the SO to get the family car, while you keep your car?
 
If its only a year old, then I dont think you're gonna have much luck.

Plus be weary of buying a cheaper car thats out of its maintenance/service plan, as you'd need to pay those over and above and reduced installment.
 
Resell values on fast/sports cars are generally quite crap. If I was in your position, I would start looking at the resell value ASAP.
 
Chevron said:
It's only been a year, you probably owe more than the car is worth.

Is it not possible for the SO to get the family car, while you keep your car?
Click to expand...

Break even point is usually about 3 years but more if you have a residual and less if you put down a deposit.

Don't make a loss on the car unless you really need to.

Also - what is the car.
 
Trust me. If you and the SO are both working, you will need two cars, or at least two forms of transportation as soon as the sprog arrives.
 
Can you not just trade the car in on another one?
To sell privately, you would have to be fully paid up before the bank will give you the title deed.
Perhaps you can get somebody to "take over" the car and payments, but how that even works I am not sure.
 
Tman* said:
Resell values on fast/sports cars are generally quite crap. If I was in your position, I would start looking at the resell value ASAP.
Click to expand...


On the contrary, the opposite is actually true. Sports cars retain their value rand for rand more than the rest, more specially if it's a VW, BMW etc.
 
Warmachine said:
Sorry about that, its a 2012 VW Scirocco, fully spec'd.
Click to expand...

I drove a 2 door as our primary car when my daughter was born.
Not optimal and some parts are quite a pain but easily doable.

Personally I would suggest keeping it and if you must, get a 2n'd 4 door car.

Obviously don't drive it the way it can be driven (with or without kids).

There is a parent behind the wheel now.

Edit, seat covers are something I would look at though, waterproof for front and back.
 
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