I want to buy a new car at some point in the next 6 months. What is going to help me get the best deal – aside from improving my credit rating, which is separate issue.
My current car is about 4 years old and has just over 36,000. It does have some minor body damage which I’ve been told would cost about $ 1000 to repair.
The current trade-in value for my car in good condition (which is where it would be if the damage was fixed) is about $ 4200.
I currently owe about $ 7200 on my loan.
If I have about $ 2500 to add to the trade-in, which of these options would get me the best deal:
1. Fix damage and trade-in with $ 1500 cash
2. Fix damage and put extra cash toward existing loan. Trade-in car only.
3. Go to dealer with car in current condition plus the $ 2500 in cash.
4. Put $ 2500 toward my loan and then trade-in just the car.
Or some other option.
For what it’s worth, the damage resulted from trying to avoid a sheep in the middle of a back country road, not because I have difficulty getting into parking spots and what not.
The reason I didn’t have it repaired was because I had missed an insurance payment and wasn’t covered at the time.
Even if I opted to buy a used car, the same question applies.