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Trade-ins after 100K miles - loan availability

Discussion in 'Fred's House of Pancakes' started by Midpack, May 9, 2009.

  1. Midpack

    Midpack Member

    Joined:
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    Location:
    Chicagoland
    Vehicle:
    2012 Prius
    Model:
    Three
    My last trade-in had 107K miles on it, and the dealer told me he could have given me more if I had traded it in a little earlier. Said it's very difficult to get a loan on a car once it's passed the 100K mark, so harder for them (or a wholesaler) to sell - my question, is this true? If true, it would make sense as buyers of old cars would seem to be even more likely to need a loan than new car buyers.

    My current car has 87K miles and I'm trying to decide between trading now (to avoid the above) or driving it until the wheels fall off. If I trade, the 2010 Prius is the leading candidate. Thanks...
     
  2. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    sure 6 figures is a mindf***. why do you think stores sell stuff for $9.99...why not make it $10?

    it is simply the pathetic limitations of our brains perception of reality at work
     
  3. daniel

    daniel Cat Lovers Against the Bomb

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    I'd say it's a matter of your own temperament, and that's something only you can decide: The cheapest transportation is to buy a reliable recent-model car and drive it until, as you say, "the wheels fall off," though of course you'd rather get rid of it just before the wheels actually fall off.

    On the other hand, if you've decided you're ready for a new car (and the Prius is an excellent choice for a new car) based on what you said above, it sounds like 87,000 miles is the time to do it rather than waiting until dealers don't want it.

    But on the third hand (hey, between us we have four :D ) if you plan on selling privately, you avoid the dealers and their concern about loans, and you could wait; though even then I suppose a car loses some value when it crosses the 100,000-mile mark.

    I'd say trade now if you're the sort of person who prefers the looks and feel and reliability of a new car and the Prius with its fancy technology, good fuel efficiency, and low pollution appeals to you. I'd say hold onto your present car if you're the sort of person who prefers to use something until it's no longer practical to use it.
     
  4. Jabber

    Jabber Chicagoland Prius Guy

    Joined:
    Apr 23, 2009
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    Location:
    Chicago
    Vehicle:
    Other Non-Hybrid
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    N/A
    Most banks will not lend money on a vehicle with over 100k. And I can tell you that once an odometer hits 100k, it instantly loses value due to the next buy saying, "It has over 100k" as opposed to one that has 99,987 on the odo.
     
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  5. Gadgetdad

    Gadgetdad New Member

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    Location:
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    Vehicle:
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    IV
    Cars are a severely depreciating asset. The Prius is less so, but I would move now to get as much for your car as possible. Waiting will cause more of a drop in value as the car ages and gets more miles recorded.

    100K is just a psychological threshold. In my mind most cars have 200k max on them and the last 50k will be costly with repairs and breakdowns.