aldo98229
Well-Known Member
- First Name
- Aldo
- Joined
- Nov 16, 2019
- Threads
- 86
- Messages
- 11,021
- Reaction score
- 27,692
- Location
- Bellingham, WA
- Vehicle(s)
- 2023 Jeep Gladiator, 2018 Fiat 124 Spider
- Occupation
- Market Research
- Vehicle Showcase
- 3
It’s not that simple, though. Overpaying has long-term consequences. It can leave you upside-down, with negative equity for a very long time. Moreso if you finance a vehicle over 72 or 84 months.On the topic of paying ‘sticker’ or a certain amount above or below MSRP… stop thinking that way. It is simple… the market decides the price. The price is ‘set’ and then supply/demand kicks in. MSRP is a starting point.
There are millions of US households right now that bought in the past 2-3 years, who overpaid and now are stuck with tens of thousands of dollars in negative equity.
Some, like those overpaying for Broncos, do so out of idiocy. But many had no choice; they really needed a vehicle.
Dealers —and banks— are happy to transfer that negative equity from one vehicle to the next in order to get the deal. But this only prolongs a poor financial decision.
Auto News had a real story of a woman who paid $35,000 for a Ford Escort that wasn't worth more than $10,000. The thing then broke down and the shop wanted thousands more to fix it. She really needed the car. The poor woman was literally stuck between a rock and a hard place...
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