I would walk. Wait till you're free and clear off the RS3.
$10.5K CAN loss on trade-in ; should I cancel ?
Hi guys
My 2023 Macan S has arrived at the dealer
Problem is my trade-in value is WAY less than what I was expecting (10.5K less than the amount I owe)
I don't think it is a good idea financially to go through even if I will feel bad if I cancel as this would be my first P car
I know I would probably be toasted for any future order if I cancel
Have I known that from the get go I do not think I would have ordered the car but you can never know what the used market will be in a few months time...
I have overestimated the used market value for my car, that's what's creating this loss and I am fully aware of it
Yes I still would get the tax rebate for the trade-in value but it still is a 10.5K net loss
I know some of you will tell me that I have ordered the car and that I should live with it
What would you do ? Have you ever been facing the same problem ?
My 2023 Macan S has arrived at the dealer
Problem is my trade-in value is WAY less than what I was expecting (10.5K less than the amount I owe)
I don't think it is a good idea financially to go through even if I will feel bad if I cancel as this would be my first P car
I know I would probably be toasted for any future order if I cancel
Have I known that from the get go I do not think I would have ordered the car but you can never know what the used market will be in a few months time...
I have overestimated the used market value for my car, that's what's creating this loss and I am fully aware of it
Yes I still would get the tax rebate for the trade-in value but it still is a 10.5K net loss
I know some of you will tell me that I have ordered the car and that I should live with it
What would you do ? Have you ever been facing the same problem ?
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I didn't know this was a lease plan . That changes things . I feel a Porsche lease is a zero equity entity . I even those who declare it a business deduction because they are only looking at a three year window . It was my understanding originally that your trade gave you the tax credit (mentioned in your original post ). Please clarify .Indeed, the rate on my actual loan is 2.9%
Rate on the Macan is 6.99% (lease) and no cash
Of course I can afford the payments which would be 150$ higher than what I pay for my actual car
But that 10.5K would still be gone...
If I keep my car for just another year there would be no loss at all
I didn't know this was a lease plan . That changes things . I feel a Porsche lease is a zero equity entity . I even those who declare it a business deduction because they are only looking at a three year window . It was my understanding originally that your trade gave you the tax credit (mentioned in your original post ). Please clarify .
Yes I still benefit from tax credit on my trade-in even if I lease the Macan and do not buy it
However the tax credit is applied on the amount that they offer for my trade in which is 10.5K less than the amount I still owe
What you owe is not involved in their process . They put a wholesale number on the car and buy out the car . What you can do is request that some of the owed amount become absorbed in the new car with a discount . They wont give all of it but they might bend. The bigger problem is the Macan is a lease . I would never lease any Porsche . Their programs are awful and now coupled with high rates its quicksand . In short.. you are digging a hole with debt (the car you are trading upside down) to end up three years from now with nothing .Yes I still benefit from tax credit on my trade-in even if I lease the Macan and do not buy it
However the tax credit is applied on the amount that they offer for my trade in which is 10.5K less than the amount I still owe
You can drown in the Porsche kool aid .
To make the Macan S happen I feel you need at least 40K in your pocket . 10K covers that loss which you might lessen . 30 K is a minimum down payment to even consider the car . No leases ,
I sincerely hope the post above was made in jest... (!!!)A Porsche will bring you through times of no money but money will not bring you through times of no Porsche .
If one owns a Porsche and ends up in a "no money" situation, an obvious move would be to unload the Porsche
and recover its equity in order to continue to live - buy food, etc.
Having "no money" will most certainly get a person through times of "no Porsche". Since Porsches are so expensive, it's
not even an option to consider buying one if one's situation is tight financially. Simple, really - no money, no Porsche!
Based on the posts I've read throughout this thread, it seems like a case of want taking over need. Nobody (NOBODY) needs a Porsche.
If I was looking at a deal where I would be starting out $10.5K in the hole, PLUS spending a deposit and monthly lease payments
I might find myself asking, "what the h*** am I doing?!?"
Logic 101
Good luck OP!
Fast all day and go to happy hour for the free Hors D'oeuvres .I sincerely hope the post above was made in jest... (!!!)
If one owns a Porsche and ends up in a "no money" situation, an obvious move would be to unload the Porsche
and recover its equity in order to continue to live - buy food, etc.
Having "no money" will most certainly get a person through times of "no Porsche". Since Porsches are so expensive, it's
not even an option to consider buying one if one's situation is tight financially. Simple, really - no money, no Porsche!
Based on the posts I've read throughout this thread, it seems like a case of want taking over need. Nobody (NOBODY) needs a Porsche.
If I was looking at a deal where I would be starting out $10.5K in the hole, PLUS spending a deposit and monthly lease payments
I might find myself asking, "what the h*** am I doing?!?"
Logic 101
Good luck OP!
Op - Meant to add this to my last post .
Despite the loss on the car there is some equity . You can't lease the Macan . Its financial quicksand . To buy it your need at least 40K . 10K absorbs some of that loss . 30 is a minimum deposit on top of the equity remaining in the trade . You would owe about 35K on the new car .
Otherwise not only do you have to walk but it really ought to leave you pondering what led you do do it. I may joke around sometimes and I do feel that any Porsche I have bought always was a stretch but I never sank myself (30 years later ). You could sink yourself . I am being. serious . Its not just the loss and the payments , Service is expensive and so are routine things like tires . Insurance is too.
I realize it hurts bit it would hurt more if you played and lost .
Despite the loss on the car there is some equity . You can't lease the Macan . Its financial quicksand . To buy it your need at least 40K . 10K absorbs some of that loss . 30 is a minimum deposit on top of the equity remaining in the trade . You would owe about 35K on the new car .
Otherwise not only do you have to walk but it really ought to leave you pondering what led you do do it. I may joke around sometimes and I do feel that any Porsche I have bought always was a stretch but I never sank myself (30 years later ). You could sink yourself . I am being. serious . Its not just the loss and the payments , Service is expensive and so are routine things like tires . Insurance is too.
I realize it hurts bit it would hurt more if you played and lost .
When I traded my 2018 TT RS (same motor as the RS3) in 2021, I got almost what I paid for it. Kelley Blue Book for the RS3 with 22K miles is about 70K CAD. Is a very in-demand used car.how much was it new? Isn’t a new RS3 about 70k? Sorry for the ignorance
Op - Meant to add this to my last post .
Despite the loss on the car there is some equity . You can't lease the Macan . Its financial quicksand . To buy it your need at least 40K . 10K absorbs some of that loss . 30 is a minimum deposit on top of the equity remaining in the trade . You would owe about 35K on the new car .
Otherwise not only do you have to walk but it really ought to leave you pondering what led you do do it. I may joke around sometimes and I do feel that any Porsche I have bought always was a stretch but I never sank myself (30 years later ). You could sink yourself . I am being. serious . Its not just the loss and the payments , Service is expensive and so are routine things like tires . Insurance is too.
I realize it hurts bit it would hurt more if you played and lost .
Thank you all for your advice
I will walk away from the deal; I know deep inside me that this is the best decision
I have a good bit of Sicilian blood, so I'd make sure they knew how pissed off I was on the way out. Hopefully you have better self control than I do.Thank you all for your advice
I will walk away from the deal; I know deep inside me that this is the best decision
If you are looking for responsible financial advice, you are in the wrong forum. There should be a disclaimer on the top of the page "reading these posts will transfer more $$$ from your account to Porsche than you originally intended" ;-)
Nobody needs a Porsche, but many want one. My final advice is to list your car for sale on one of the online services (Autozen as an example). When I was in a similar position, they gave me $5,000 extra on top of trade-in offers from Honda dealers.
Nobody needs a Porsche, but many want one. My final advice is to list your car for sale on one of the online services (Autozen as an example). When I was in a similar position, they gave me $5,000 extra on top of trade-in offers from Honda dealers.
If ever, you’re in Miami, send me a PM. I have some cars. You don’t have to feel like saying no right now is forever. It’s just not the time right now.Thank you all for your advice
I will walk away from the deal; I know deep inside me that this is the best decision
I'll use this thread to ask a somewhat related question. I am 14 months into my 22' Macan and have started thinking about the next one. Any idea what is the ideal window to trade in from a financial perspective? I am perfectly happy with my Macan, and there's no rush, but if it makes sense financially, I could schedule it anytime.
I'm late getting to this thread late and it looks like you may have already decided on your course of action. Just wanted to point out that just being underwater $10,000 in a loan does not necessarily mean you are losing money. Can't really tell without knowing the details of your original car cost and the financing and or lease details.Hi guys
My 2023 Macan S has arrived at the dealer
Problem is my trade-in value is WAY less than what I was expecting (10.5K less than the amount I owe)
I don't think it is a good idea financially to go through even if I will feel bad if I cancel as this would be my first P car
I know I would probably be toasted for any future order if I cancel
Have I known that from the get go I do not think I would have ordered the car but you can never know what the used market will be in a few months time...
I have overestimated the used market value for my car, that's what's creating this loss and I am fully aware of it
Yes I still would get the tax rebate for the trade-in value but it still is a 10.5K net loss
I know some of you will tell me that I have ordered the car and that I should live with it
What would you do ? Have you ever been facing the same problem ?
Using an extreme example to illustrate what I'm trying to say, suppose you had a zero principle 5-year loan and made interest only payments for 3 years. If you are only underwater $10,000 after 3 years and no principal payments, you are in pretty good shape. You really should be comparing your debt principal reduction over your ownership period with the current trade-in $ or FMV of the prior vehicle.
If you are looking for responsible financial advice, you are in the wrong forum. There should be a disclaimer on the top of the page "reading these posts will transfer more $$$ from your account to Porsche than you originally intended" ;-)
Nobody needs a Porsche, but many want one. My final advice is to list your car for sale on one of the online services (Autozen as an example). When I was in a similar position, they gave me $5,000 extra on top of trade-in offers from Honda dealers.
I did but I get roughly about the same value that Porsche is offering me
So I guess I'm just too early into my loan to have a positive equity and that he used market value has decreased
It does not help that I bought my car when the used market value was skyrocketing during the pandemic
Most important thing is that I've learned a lot throughout this process
Don't do it, plain silly. Vehicles are just deprecating assets. If you're that far off the deprecation curve keep driving what you're driving. There's no vehicle worth taking a 4-5 figure loss over.
There is no reason on earth to "trade up" to a 2023 from your 2021. I, too, have a '21 GTS. The end of the "cycle 2" Macan, 2019-2021, appears to be a nice spot to be in. No "throttle lag" requiring a Pedal Commander or the like. Buttons instead of the touch pad, electrically adjustable steering column, etc. Keep your 2021 GTS.Kelley Blue Book for your car is actually considerably more than 58K CAN (about 72K CAN). You're being cheated by the dealership, because they have all the leverage. I have a 2021 Macan GTS, and the dealership recently offered me a chance to upgrade to a 2023. The trade-in they offered was about $20,000 USD low. I told them to GFT.
And, it seems the best time to do the trade in is when you make the deal. Rent a junker until your new car arrives.
If you are looking for responsible financial advice, you are in the wrong forum. There should be a disclaimer on the top of the page "reading these posts will transfer more $$$ from your account to Porsche than you originally intended" ;-)
Nobody needs a Porsche, but many want one. My final advice is to list your car for sale on one of the online services (Autozen as an example). When I was in a similar position, they gave me $5,000 extra on top of trade-in offers from Honda dealers.
I'll use this thread to ask a somewhat related question. I am 14 months into my 22' Macan and have started thinking about the next one. Any idea what is the ideal window to trade in from a financial perspective? I am perfectly happy with my Macan, and there's no rush, but if it makes sense financially, I could schedule it anytime.
I read these two posts back to back and had to laugh .
I would not "trade in" a car that I have not fully paid off. The way I see it is getting out of one debt, to get into an even "bigger" debt. These cars are NICE, but they are all depreciating assets, so unless I was buying a 997 GT3 RS (which will likely hold its value forever), I will always loose money on the car. That's just my $0.02, take if for what it is, I am older so I'm way more careful with my money....😉
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