Trade In how does it work.

[semisane1987]

Good afternoon

My lady friend bought Ford Figo in 2015 she bought it brand new. Now she want to trade in she want to buy, VW Beetle I think it's a bad idea. I said she must wait a bit maybe think about getting a new car, when she is about to finish paying the Figo.

She said she took residual payment, maybe someone here can advice us a way forward. But me personally I think it's a bad idea, but I don't want to look like a jealous friend. Basically how does trade in work I have an idea but don't know if my information is correct.

I think if maybe now she own R110 000 for the figo, maybe VW will trade her car for R75 000 the remaining amount out of that R110 000 will be loaded into the new car installment. VW Beetle is expensive can she afford it on a R10k, salary.

 

[DrJohnZoidberg]

VW Beetle is expensive can she afford it on a R10k, salary.

No she should keep the Figo.

 

[FiestaST]

No she should keep the Figo.

+100 & pay it off & keep it.

 

[Sinbad]

Terrible, terrible idea.

New beetle is R420k.
Add 35k loading.
R455k. 60 months, 12%, R10200 a month.

 

[paul5186]

If she has a residual, that means she still needs to pay a lump sum of anything between 10-50% of what she purchased the Figo for.

Secondly a beetle is kark, and the Figo will last her many years more to come.

 

[DrJohnZoidberg]

Terrible, terrible idea.

New beetle is R420k.
Add 35k loading.
R455k. 60 months, 12%, R10200 a month.

Ye, it's probably unlikely the bank would approve the loan in the first place.

 

[Pho3nix]

Ye, it's probably unlikely the bank would approve the loan in the first place.

50% residual peeps driving bmws beg to differ

 

[supersunbird]

She making an emotional decision, while she should be making a financial decision.

There are lots of Figos on the road, it's easy to fix.

Even thought the VW Beetle might share many components with the golf, if the side mirror get bumped or and the bumper gets damaged, she will not easily find replacement parts.

Is the VW Beetle she wants to get second hand?

 

[semisane1987]

I advised her to for demo model if she want to buy it. She said she going to VW tomorrow, I don't think she can afford it honestly. She say she want to trade in so who am I to stop her.

 

[SauRoNZA]

Odds are she’s going to do it regardless.

If it was paid off I would have said get the trade in value and then sell it to a friend for the same money or advertise it for 25% more.

Either way the friend scores and she doesn’t lose, or she’ll get a little bit more in her pocket.

Private sale while financed is a bit more tricky and might leave you without a car for a few days. It’s do-able but a bit more complicated which is why most people take the knock on trade-in as it’s easier.

 

[Sinbad]

She won't get finance on half a million on a 10k salary

 

[SauRoNZA]

She making an emotional decision, while she should be making a financial decision.

There are lots of Figos on the road, it's easy to fix.

Even thought the VW Beetle might share many components with the golf, if the side mirror get bumped or and the bumper gets damaged, she will not easily find replacement parts.

Is the VW Beetle she wants to get second hand?

Why not? The parts come from the very same place that the Golf’s comes from.

Unless you meant DIY? As these things go it’s insurance’s problem not yours.

Even DIY it’s a phone call away and very very easy.

As VW’s go even the more special ones parts are never an issue.

 

[Zukat]

Why not? The parts come from the very same place that the Golf’s comes from.

Unless you meant DIY? As these things go it’s insurance’s problem not yours.

Even DIY it’s a phone call away and very very easy.

As VW’s go even the more special ones parts are never an issue.

That's not how it works, in order not to tie up their cash flow local dealerships will stock parts in accordance to the volume of their model ranges on the roads. In other words, they will order 100 mirrors for golf while 2-5(if any) for a beetle, so as much as its insurance problem to pay for importation of that mirror, you are the one sitting without a car until its shipped and fitted.

I had similar experience with renault, when I got rear ended and it took about 2 months to get the bumper and taillights imported. Further, the depreciation and resale value on the beetle will be terrible and she will just be growing her residual.
As mentioned above, best will be to keep the figo, but obviously that advise will be ignored... consumerism is prevailing and buying new things makes us happy... well at least until next month.

 

[Dan C]

With the residual, she probably has not paid off anything yet

 

[SauRoNZA]

That's not how it works, in order not to tie up their cash flow local dealerships will stock parts in accordance to the volume of their model ranges on the roads. In other words, they will order 100 mirrors for golf while 2-5(if any) for a beetle, so as much as its insurance problem to pay for importation of that mirror, you are the one sitting without a car until its shipped and fitted.

I had similar experience with renault, when I got rear ended and it took about 2 months to get the bumper and taillights imported. Further, the depreciation and resale value on the beetle will be terrible and she will just be growing her residual.
As mentioned above, best will be to keep the figo, but obviously that advise will be ignored... consumerism is prevailing and buying new things makes us happy... well at least until next month.

But that’s a Renault, this is a VW.

There are still 2-5 Beetle mirrors in stock, that’s my point. There will be stock.

It’s not a hard to find parts for the car in the slightest and should be the last reason on earth to worry about.

Worst case scenario it gets shipped overnight from another distributor inside SA.

By that logic we should all be in Toyota Tazz’s and Citigolfs. Or for that matter sell anything that has a facelift, because oh dear there won’t be parts any more as they only stock the latest.

It’s not a Lamborghini.

 

[Sumen]

She's only 2.5 years into the finance, I think it's better she keep the car for another 2 years, that ford Figo is a popular car and I am sure she will get around R100 000 for it in 2019

 

[FiestaST]

A few questions Ramodiana so I (we) can judge:

- how old is this lady friend?
- does this lady friend value a car more as a status symbol than a means of transportation?
- does this lady friend try to be a trendsetter ito of always wants the latest fashion; phone; designer shoes etc

No matter how you slice it, even with close to zero expenses, R10k (gross) is not a lot of dough in ZA in 2017.

The smart thing is pay off the Figo & perhaps keep it for a few years. If she still wants a Beetle then pick up a 3/4 yr old one.

The cars are not in high demand & their resale is not VW-amazing like the Golf; Polo; Vivo etc.

 

[tRoN]

She can keep her figo and still get a beetle.

 

[TheChamp]

She can keep her figo and still get a beetle.

Now that is very progressive, win win solution I say.

 

[semisane1987]

A few questions Ramodiana so I (we) can judge:

- how old is this lady friend?
- does this lady friend value a car more as a status symbol than a means of transportation?
- does this lady friend try to be a trendsetter ito of always wants the latest fashion; phone; designer shoes etc

No matter how you slice it, even with close to zero expenses, R10k (gross) is not a lot of dough in ZA in 2017.

The smart thing is pay off the Figo & perhaps keep it for a few years. If she still wants a Beetle then pick up a 3/4 yr old one.

The cars are not in high demand & their resale is not VW-amazing like the Golf; Polo; Vivo etc.

She is 27 years she has no responsibility she stay at home, with working parents VW Beetle is her dream. I think what trigged this thing now, the boyfriend's car is stolen so he will be getting a new car. I think that is why she feel she also need a new car.