Mingus

I think you just figure out your down payment and how much you've made in payments. That is your capital cost for driving it the past 11 months.

Then add what the payoff amount is to the above number.

Subtract the trade in allowance and that is how much you are losing. Then figure out any tax benefits and subtract that.

nosurprise

iTrader: (1)

There isn't much reason to calculate how much it costs to use the IS350 for the past 12 months. The money is already gone and doesn't help or hurt the current situation since the IS seems to be more than what OP needs. By downgrading, you might actually be better off financially (i.e. the amount of money you have increases since the cars are depreciating assets and you're using something that costs less). The only real cost is probably the tax (unless a trade doesn't incur taxes).

I think right now the best thing to do is to not get screw over by a potentially complicated transaction. You can post the amount you financed originally or the amount left to be paid off, then you can negotiate with all the information you have -- the worth of the IS you're trading in and the cost of the CT.

Mingus

I'm wondering how much the loss was on the Honda that was traded in for 20K. That sounds like a very late model to get that much trade in allowance. Whatever it was, must have been paid off.

Cat

You are correct sir (or ma'am?)

Thanks all for your insightful comments and opinions! You guys are awesome so that's why I come here to ask you.

misterhu

So basically,you have to ask yourself if you are okay with paying 11k to drive the car for only 11 months. I understand that it's sunk costs, but the way I see it is that you have already paid the brunt of the depreciation. The longer you keep the car the more value you get out of it. If you are looking at it like a lease then you're not looking to really save money. Hell, if you're buying a Lexus you're not saving money either. But when I decided to buy my IS, I was sure that would be happy with it for the long haul and would try get as much value out of it as possible.

Mingus

I think her actual loss will be closer to 8k. Which still sucks.

But if she doesn't like the car, and can get 34K trade in out of it, plus sales tax benefit on buying something else if her state allows that, its probably better to trade it sooner than later.

Biggest thing I'm questioning is she seems to be trading a lot rapidly. Probably a year old Honda for 20K trade in. A year old Lexus for 34K trade...

I think she should just get an inexpensive sub 20K car, and pocket a bunch of cash in way lower payments instead of getting the CT...

embolism

I think Mingus hit the nail on the head.

Cat, just know that if you keep the CT for only a year before you start looking at another car, you will take the biggest bath yet...

iRock

iTrader: (12)

I don't see young kids buying hybrids. I guess to answer your question. When I get 40 I'll buy a hybrid

Cat

I had my Honda for 2.5 years before I traded it in. I know it seems I have commitment issues with cars that is costing me a lot of money.

You guys seem to all really understand my situation and talk some sense into me. Thanks.