I plan on talking to the bank prior to doing anything, but right now I drive a 97 integra gsr, which I love to death, but I want an s2k. Does it make more sense to wait until it's paid off (May 2007) then sell it and use the money on a down payment on an s2k, or would I be doing myself a favor to trade it in next spring instead of letting it depreciate for an extra year in my possession. The thing runs like a top, and it's getting new paint in the spring because the last owner let it get all pink (milano red goes pink really easily if not properly taken care of). On the plus side of waiting, I'd be able to get a later model s2k for cheaper. So basically I guess it's looking at the difference in depreciation between my 97 gsr and an 03 or 04 s2k. Any comments are welcome, this is just a pretty general question, I'm just trying to look at it from all angles.

 

It may boil down to what you can do financially, but rest assured you will be happy with whatever you decide to do. My last car before the S2000 was a '97 GSR and I loved it to death. The S2000 will run circles around it though. Everything you like about the GSR, the handling, the engine, the transmission is exagerated much better in the S2000. You sacrifice a little usability but it is worth it I think.

 

I'd say try to sell it for the most you can, whether you owe money or not. The car's worth- is the car's worth. Your position will be best when you can "get more than it's worth", regardless of how much is owed.

Most likely you be close to even or slightly upside down on the car either way, so concentrate on selling it for a good price, which can take a while and put you in a better position. A car dealer is going to give you less than if you sold it on your own. If you can sell it for "KBB Trade In Value", then you're doing pretty good.

 

The actual transaction is just a paper shuffle anyway. When to buy a new car and get rid of the old one should be based on ............................
-what the old one is worth now as opposed to later.
-what kind of deal you can get on the new car now as opposed to later.
-how your current interest rate compares to what rate you would get on the new car now or later.
-how much value you place on keeping your old car as opposed to the enjoyment you would get out of buying a new one now or later.

The fact that you have an outstanding loan on your current car should have no bearing on doing this deal (other than what I've already mentioned). There is no penalty for paying off a car loan early and basically, that is what you do - you retire the existing loan and take up a new one.

 

If you sale it yourself, see if the dealership can do the paperwork for you. The dealership will allow you to get the tax benefit as long as you apply the money to the car you are buying. Typically they won't charge anything for the service because they are assured you are going to buy their car.

 

OBD2 GSRs are in demand, there's no doubt about that. I think you'll be able to sell it for a decent price. There isn't going to be much depreciation from this year to the next year.

If you hate depreciaton, an 03-04 is not going to be the best choice. 00-01 models are your best bet.

 

The quicker you start making payments on the S the quicker it will be paid off.

 

Thanks for the comments and suggestions. I'm going to start selling my car next spring as soon as it's painted provided I know I'll be able to get a loan for the remainder of the purchase price of a new (to me) S. I would hate to sell my car and then be given the cold shoulder on a loan for an S.
I've never sold a car before so this is all new to me. My gsr was my first car. s2k will be my second.

Also, with the exchange rate the way it is, and assuming it stays there, would it be of benefit to me to have a look in the US for a car?

 

I'd still look for a car locally. I'd imagine any savings you realize due to a weak dollar would be more than offset by the costs and hassle of importing it back into the UK.

EDIT:
Sorry, before coffee, that Canadian flag sure looks like the UK flag. Ok, it really doesn't, I'm an idiot. I have no idea if cars are easy to bring into Canada from the USA so I'll stop talking out of my arse now.

 

Unless you're painting it yourself or insurance is paying for it, don't spend the money to paint it. I doubt you'll recoup the difference unless it looks like a POS and you just want to do a cover up.

If you're looking to get an S2000 by spring, start selling your car now to get the best price; sounds like money is an issue, so every penny you can get counts, and the longer you keep your car, the more that could break and more you're spending on a car you don't want and is depreciating.

Selling a car for a good price (to you) can take some time.