im planning to get a SI.. need opinions/suggestions on my situation.

[jericSI]

good day to everyone here on this forum.
I have been following this forum for few months before the SI came out.
and I need your humble and honest opinion regarding my situation.
So currently im driving a scion IA econobox, and if im getting the SI i will be upside down by 4k, because the value of the scion did not hold much and i did not put a down payment when i got the car Dec.2016.
I do not have 4k to put down on the SI to payoff the upside down, but I can put down 1k, im on my mid 20's and have not driven any SI, I had a 2004 civic ex before, but always a fan of honda.
my credit score is on a 690-710 range eatimate, and i have a good credit history in terms of paying my bills loans. if i get around 1.9%apr Im thinking it will be a good deal for not to pay too much interest on the loan.
please let me know your opinion and suggestions and please respect my post.
I appreciate it everyone.
have a nice day ahead!

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[zroger73]

While realizing the Si is always a "want" and never a "need", I suggest you hang on to your iA for at least a few more years. As you're learning, vehicles are a terrible investment - the only difference is that some are "less terrible" than others, but they all depreciate. Keep your iA and enjoy its economy and reliability. Wait for the next-generation Si around 2020.

 

[TTRPGGeek]

Yeah I'm with zroger on this one. I'm glad I've got a bit of equity in the Accord, but if I didn't have that plus a down that doesn't pinch I wouldn't even think about making the switch. Better to pay the current one off and run it into the ground a bit. Your financial situation will improve over time.

Also - I wouldn't hold out hope for 1.9%. Maybe it will happen, but Honda's current 1.9 offer (for qualified buyers) is on Accord's and Civics that specifically are NOT type R or SI. Wife and I have excellent credit so, looking to get an idea of real world rates available at the moment we got pre approved through State Farm bank (have auto, homeowners, life, the Accord and an IRA through them - financial institutions offer preferable rates when you give them all your money ). Pre approval, which is likely to improve a bit when the real numbers hit rather than estimates - 2.94%

That gives me something to shake at the dealer - if dealer can land us 2.49 or 2.25 he can have us. But just sayin - a married near 50 year old couple with never a credit hit, low mortgage, low debt, same jobs for ages, great credit got offered 2.94. 1.9 seems unlikely for this vehicle for us, so I would think it might be a challenge for a kid

 

[Jessegovols]

good day to everyone here on this forum.
I have been following this forum for few months before the SI came out.
and I need your humble and honest opinion regarding my situation.
So currently im driving a scion IA econobox, and if im getting the SI i will be upside down by 4k, because the value of the scion did not hold much and i did not put a down payment when i got the car Dec.2016.
I do not have 4k to put down on the SI to payoff the upside down, but I can put down 1k, im on my mid 20's and have not driven any SI, I had a 2004 civic ex before, but always a fan of honda.
my credit score is on a 690-710 range eatimate, and i have a good credit history in terms of paying my bills loans. if i get around 1.9%apr Im thinking it will be a good deal for not to pay too much interest on the loan.
please let me know your opinion and suggestions and please respect my post.
I appreciate it everyone.
have a nice day ahead!

25,000 + 4,000 (your upside down amount) = 29,000 60 mos at 1.9% = 502 per month with your 1000 dollars taking care of tax and license fees. It would be about 430 a month if it was an even trade so not too much more. If you consider the Si then do yourself a favor and go check out the Hyundai Elantra Sport 6MT before you do. You can get a car with same effective HP / Torque albeit minus the LSD but with more feature content, leather, Nav, HIDs, etc at a lower price and better looks at least compared to the Si Sedan.

 

[Wizerud]

Meh to all these sensible answers

What are you basing your 4K upside down figure on, or more specifically, what value are you basing your current vehicle on? If you're basing it on a dealer trade-in figure, that's always going to be lower than its actual value.

 

[serif]

If you're trading in your upside-down car without covering the difference, you're effectively paying the difference above MSRP on the new one. That starts you out automatically upside-down, because now you're financing more than the car was ever worth, and you'll be upside-down for much longer as you're fighting against depreciation from a compromised position. Unless there is something wrong with your xA that will cost more than $4k to fix, it doesn't make financial sense to put yourself in that position. Instead, try squirreling away the assumed difference in monthly payment every month until you build up enough savings or pay the loan down enough to come out at least even. You've only had the car since December, so waiting that out will seem like forever in comparison, but once you reach that goal it'll feel even sweeter to buy the car you want.

SOURCE: Doing this crap in the past!

 

[jericSI]

While realizing the Si is always a "want" and never a "need", I suggest you hang on to your iA for at least a few more years. As you're learning, vehicles are a terrible investment - the only difference is that some are "less terrible" than others, but they all depreciate. Keep your iA and enjoy its economy and reliability. Wait for the next-generation Si around 2020.

thank you so much @zroger73, i will consider what you said.. i feel bored on my econobox and would like some fun driving stick shift again for daily.. but you might be right i should wait.. i mean my econobox is alright no problem at all with 22k miles on it at 18months old. I appreciate it. and have fun on your SI!

 

[jericSI]

Yeah I'm with zroger on this one. I'm glad I've got a bit of equity in the Accord, but if I didn't have that plus a down that doesn't pinch I wouldn't even think about making the switch. Better to pay the current one off and run it into the ground a bit. Your financial situation will improve over time.

Also - I wouldn't hold out hope for 1.9%. Maybe it will happen, but Honda's current 1.9 offer (for qualified buyers) is on Accord's and Civics that specifically are NOT type R or SI. Wife and I have excellent credit so, looking to get an idea of real world rates available at the moment we got pre approved through State Farm bank (have auto, homeowners, life, the Accord and an IRA through them - financial institutions offer preferable rates when you give them all your money ). Pre approval, which is likely to improve a bit when the real numbers hit rather than estimates - 2.94%

That gives me something to shake at the dealer - if dealer can land us 2.49 or 2.25 he can have us. But just sayin - a married near 50 year old couple with never a credit hit, low mortgage, low debt, same jobs for ages, great credit got offered 2.94. 1.9 seems unlikely for this vehicle for us, so I would think it might be a challenge for a kid

@TTRPGGeek thank you sir! I appreciate the input.. i will think twice, 3 times 4 times before doing the move.. and do not want to have dealership pull my credit and will decrease my score for sure for the hard pull.. haha
state farm is good because they have you covered on the gap insurance once you finance with them. you dont have to pay the gap insurance to the dealership..

 

[ne0guri]

is it crazy to rent a fun type of car for like a day or two?

 

[TTRPGGeek]

is it crazy to rent a fun type of car for like a day or two?

Hell no. If I don't get the SI here's where a hunk of my down payment will be going... renting a fun car for like an hour or two!

http://www.thextremexperience.com/

 

[jericSI]

25,000 + 4,000 (your upside down amount) = 29,000 60 mos at 1.9% = 502 per month with your 1000 dollars taking care of tax and license fees. It would be about 430 a month if it was an even trade so not too much more. If you consider the Si then do yourself a favor and go check out the Hyundai Elantra Sport 6MT before you do. You can get a car with same effective HP / Torque albeit minus the LSD but with more feature content, leather, Nav, HIDs, etc at a lower price and better looks at least compared to the Si Sedan.

@Jessegovols thank you for your reply! will check on the elantra sport.. it has an incentive to in hyundai dealership in my city.. haha have a good one!

 

[jericSI]

Meh to all these sensible answers

What are you basing your 4K upside down figure on, or more specifically, what value are you basing your current vehicle on? If you're basing it on a dealer trade-in figure, that's always going to be lower than its actual value.

@Wizerud i just did some of the quick trade in thing of the dealership website..
appreciate the input!

 

[jericSI]

If you're trading in your upside-down car without covering the difference, you're effectively paying the difference above MSRP on the new one. That starts you out automatically upside-down, because now you're financing more than the car was ever worth, and you'll be upside-down for much longer as you're fighting against depreciation from a compromised position. Unless there is something wrong with your xA that will cost more than $4k to fix, it doesn't make financial sense to put yourself in that position. Instead, try squirreling away the assumed difference in monthly payment every month until you build up enough savings or pay the loan down enough to come out at least even. You've only had the car since December, so waiting that out will seem like forever in comparison, but once you reach that goal it'll feel even sweeter to buy the car you want.

SOURCE: Doing this crap in the past!

@serif thank you for your inputs! i know i dont want also paying extra for the new loan that i dont have the actual car anymore.. there is nothing wrong with the scion econobox i have.. i mean its so great in mpg..aha thanks again!

 

[Shankmeyster]

Also they are probably gonna hit you even harder on the interest rate if you are upside down as that shows irresponsible credit use. You're just going to have to deal with the Scion until you are in a better financial situation.

 

[jericSI]

THANK YOU SO MUCH Y'ALL FOR YOUR COMMENTS/OPINIONS/SUGGESTIONS..
Have a wonderful day ahead..

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