Trade my car

[Fuma]

I have an interesting situation.
I bought a Mazda 2 yrs ago for about R40K.

A year later I had a terrible accident took it for repairs, but had countless problems with the car after that.
I got pissed and traded in the car and I had a R15K shortfall. Got another car for R75K, meaning since I had a short of R15K, I bought that car for R90K (R75K + R15K).

My settlement amount is about R95K now and my car is valued at R60K.

Now I want a smaller/cheaper car since I'm in the process of buying a house. I want to trade-in my current car.
Suppose the car I want is R40K, and I will have a shortfall of R35K.
Can u trade in ur car for a cheaper one?

 

[ToxicBunny]

You'll still be required to pay in...

Treat the two things as seperate transactions since you have a loan to pay off, and will then have to institute a new loan for the new car.

 

[albert123]

drive the car you buy for longer to avoid this, yes u can trade in for a cheaper car, but trading in you will lose a lot of money, rather, look on autotrader what your car sells for, then take a few thousand off, advertise yours on there, (it will still be a lot more than trade in value), sell it private, go buy a car that u want... and drive it for a long time till its paid off at least to avoid this from happening again...

 

[guest2013-1]

You'll still be required to pay in...

Treat the two things as seperate transactions since you have a loan to pay off, and will then have to institute a new loan for the new car.

He won't be able to do that. The banks do not allow you to finance the shortfall as a separate loan (or Standard Bank doesn't anyway)

I'm in the same predicament with the exact same parameters (except the price of course)

 

[guest2013-1]

I have an interesting situation.
I bought a Mazda 2 yrs ago for about R40K.

A year later I had a terrible accident took it for repairs, but had countless problems with the car after that.
I got pissed and traded in the car and I had a R15K shortfall. Got another car for R75K, meaning since I had a short of R15K, I bought that car for R90K (R75K + R15K).

My settlement amount is about R95K now and my car is valued at R60K.

Now I want a smaller/cheaper car since I'm in the process of buying a house. I want to trade-in my current car.
Suppose the car I want is R40K, and I will have a shortfall of R35K.
Can u trade in ur car for a cheaper one?

My personal advice here (reading your post, unlike some people *again*) is to rather stick with what you have at the moment until your house loan goes through.

It will be rough for a couple of months, but try and then consolidate the shortfall you have within the home loan and then go for a trade in. This will mean you pay off more on your home than you would have, but will mean that you're able to afford to buy a cheaper car in the process and have more cash lying around to put in your bond.

Don't make the mistake in thinking that just because you have a few extra hundred lying around after this process that you can spend it willy nilly, push that amount you saved into your bond.