Ford Focus ST Forum banner

1 - 20 of 23 Posts

·
Registered
Joined
·
369 Posts
Discussion Starter #1
I'm looking for some advice. I have an RS on order. I know it's left the factory, but beyond that, I have no idea when I'll be getting it (hoping some time in August). I only have one other vehicle, and that's my ST. I'm not really crazy about the offer I got from the dealership and think I should be able to do better than that with all the mods I've put into it. The problem is timing. I kind of need the money from the ST to help with financing the RS. But I also need a car to drive in the meantime, so I can't just sell it off immediately. The fact that I don't know when the RS will arrive doesn't help things.

I could put down a larger downpayment to make up for not having a trade-in, but I'd prefer not to do that, especially since I still owe $5k on the ST and have to factor that in. I've heard that paying off a car loan early can have negative affects on credit rating and that really won't help with financing the RS.

Of course, I could just part it out and take the trade in, but I doubt I'll get anywhere what I'd like to get out of the parts, and I'd have the hassle of taking them off, buying a stock exhaust (which I no longer have).

I've never sold a car myself, so I haven't had to deal with the hassle of advertising, test drives, financing, etc. Any advice would be appreciated!
 

·
Premium Member
Joined
·
1,291 Posts
IMO mods only hurt a car's resale value. I know for myself and my circle of friends, we are all less likely to buy a car that has been modded and won't be willing to spend as much on a car that has been "beat on". If you want to maximize your return, return it to as close to stock as reasonably possible and sell the aftermarket parts. Selling the car private party will put more money in your pocket than you'll ever get through a trade in but that requires more work and can take a while.
 

·
Registered
Joined
·
2,252 Posts
Psilynt hit the nail on the head. Mods do not really help in resale unless you just get lucky and find someone that wants that car the way it is and doesn't care that it was probably frequently driven hard. Second, you will never get the same money trading as you will selling it yourself, but there's a lot more work involved. Keep in mind, when you trade, you get a tax break, as you only pay taxes on the trade difference rather than the sale price of the vehicle you're buying. That could easily be $600-1000 depending on trade value and your local tax rate. Either way, any stock parts you can put back on and sell your mods on here to get as much back as possible.
 

·
Registered
Joined
·
369 Posts
Discussion Starter #6
Psilynt hit the nail on the head. Mods do not really help in resale unless you just get lucky and find someone that wants that car the way it is and doesn't care that it was probably frequently driven hard.
Yeah, unfortunately the assumption is that if the car was modded, that probably means it was beat on. Not the case here as I'm actually not a particularly aggressive driver a majority of the time and I've never tracked it, but I understand why people would assume that. Thanks for the tip on the tax ramifications. I had not thought of that angle. I have no idea how taxes work on a private sale either.
 

·
Registered
Joined
·
458 Posts
I'm looking for some advice. I have an RS on order. I know it's left the factory, but beyond that, I have no idea when I'll be getting it (hoping some time in August). I only have one other vehicle, and that's my ST. I'm not really crazy about the offer I got from the dealership and think I should be able to do better than that with all the mods I've put into it. The problem is timing. I kind of need the money from the ST to help with financing the RS. But I also need a car to drive in the meantime, so I can't just sell it off immediately. The fact that I don't know when the RS will arrive doesn't help things.

I could put down a larger downpayment to make up for not having a trade-in, but I'd prefer not to do that, especially since I still owe $5k on the ST and have to factor that in. I've heard that paying off a car loan early can have negative affects on credit rating and that really won't help with financing the RS.

Of course, I could just part it out and take the trade in, but I doubt I'll get anywhere what I'd like to get out of the parts, and I'd have the hassle of taking them off, buying a stock exhaust (which I no longer have).

I've never sold a car myself, so I haven't had to deal with the hassle of advertising, test drives, financing, etc. Any advice would be appreciated!
Ya, often difficult to sell a modded car and generally only hurts value as others have said. You have a really nice exhaust but I'm not sure it's worth the labor to have a stock put back on. You can buy them cheap on Craigslist locally though, I've seen many for about $100.

I don't know why you think paying a loan off early hurts credit, that is not true, the exception would be an early payment clause in the loan itself but that is rare and would only be an extra fee not a hit on your credit.

Another thing to check is the new used car chains that have popped up like car max or car rite. Some people have said they got decent offers from them.
 

·
Registered
Joined
·
369 Posts
Discussion Starter #8
Ya, often difficult to sell a modded car and generally only hurts value as others have said. You have a really nice exhaust but I'm not sure it's worth the labor to have a stock put back on. You can buy them cheap on Craigslist locally though, I've seen many for about $100.

I don't know why you think paying a loan off early hurts credit, that is not true, the exception would be an early payment clause in the loan itself but that is rare and would only be an extra fee not a hit on your credit.
Eh...My dad & I have done all the work on the car. No labor cost associated with changing the exhaust back (and it is my favorite mod).

As for paying off a car loan affecting credit, that's just from some google research. I'd love for that not to be the case, because having the title would make the selling process a bit easier.
 

·
Premium Member
Joined
·
592 Posts
Eh...My dad & I have done all the work on the car. No labor cost associated with changing the exhaust back (and it is my favorite mod).

As for paying off a car loan affecting credit, that's just from some google research. I'd love for that not to be the case, because having the title would make the selling process a bit easier.
First off your credit score is made up by a multitude of various factors, nobody seems to truly knows the exacts just the general theory.

As I understand it the major factors are: late payment history, mixture of revolving/instalment/open, % utilized, credit request frequency and finally average age of accounts.

The only one of those factors that paying the loan off sooner will affect would be your average age of accounts. I believe having older accounts is favourable as it demonstrates stability. The best accounts to have in your profile are those credit cards you had since you were 18 years old and has been active for 20 years, this drags up your average age of accounts. Meanwhile if you are frequently paying loans off early which leads to starting new loans frequently you are going to have a relatively low average age of accounts. How majorly this impacts your credit score? Well that is the golden question. Again your score is a combination of many things.

If I were to guess I would say if you have many late payments on your history you had better have a high average age of accounts to make it seem those late payments were rare and infrequent. Versus if you have high # late payments but low average age account, your credit is going to look like you are always missing things and you are unable to maintain ongoing accounts. But again this is speculation. This would be the most logical rationale I come can up with regarding how your average age of accounts impacts the overall score.
 

·
Registered
Joined
·
532 Posts
Not sure about WI, but in MO you have 180 days to claim tax credit.

So if you buy a car, then sell another within 180 days you can put that value against your purchase price. You're not required to put everything in the same transaction. Check with your DMV.
 

·
Registered
Joined
·
148 Posts
In my experience with credit (25+ years) I have never had a negative affect when paying off something early. Here is what I suggest you do, return the car back to stock, you can sell of your mods here on the forum which I see used mod parts are sold very quickly (yes you will not get all your money back, but you can get 75-80% of it back). Regarding the exhaust, you can offer it up for a trade with someones stock exhaust + money on top, someone will be more than willing to take you up. Once the RS is ready for you (you get a call from the dealer), take your car to CARMAX, they will give you a buy it offer in 30 minutes (and in my experience the offer is better than what dealers offer on trade). They will give you 7 days to come back and sell them your car. You can either A) take the CARMAX offer to the dealer with the RS and tell them you will take no less than this amount on trade or B) sell it to CARMAX (they will pay off what left on your loan and cut you a check for the difference). I've done this with my last 3 car buys, two matched the CARMAX offer (after giving me a low ball trade in amount) and one I went back to CARMAX and sold it to them, then used the money I got as a DP. I hope this helps, good luck!
 

·
Super Moderator
Joined
·
5,730 Posts
As others have said, return it to stock and sell your parts. They go very quickly on the forum. If you don't have a stock exhaust then leave it. Also, unless there is some weird and unusual clause in your loan there is never a pre-payment penalty. I've paid a few vehicles off early and never taken any kind of hit on my credit. I typically take the longest term that the interest rate is consistent with lower terms then plan to overpay from the start and get it done early. That way I get ahead of the payments.
 

·
Registered
Joined
·
458 Posts
Eh...My dad & I have done all the work on the car. No labor cost associated with changing the exhaust back (and it is my favorite mod).

As for paying off a car loan affecting credit, that's just from some google research. I'd love for that not to be the case, because having the title would make the selling process a bit easier.
Cool, you'll just have to either have it welded or cut it a little more and get a slip fit collar and some clamps. I think your downpipe and exhaust would sell pretty fast.

I see you're in Eau Claire, I was actually just there last weekend for a wedding. My wife went to UWEC and one of her friends from school just got married in Chippewa Falls.


First off your credit score is made up by a multitude of various factors, nobody seems to truly knows the exacts just the general theory.

As I understand it the major factors are: late payment history, mixture of revolving/instalment/open, % utilized, credit request frequency and finally average age of accounts.

The only one of those factors that paying the loan off sooner will affect would be your average age of accounts. I believe having older accounts is favourable as it demonstrates stability. The best accounts to have in your profile are those credit cards you had since you were 18 years old and has been active for 20 years, this drags up your average age of accounts. Meanwhile if you are frequently paying loans off early which leads to starting new loans frequently you are going to have a relatively low average age of accounts. How majorly this impacts your credit score? Well that is the golden question. Again your score is a combination of many things.

If I were to guess I would say if you have many late payments on your history you had better have a high average age of accounts to make it seem those late payments were rare and infrequent. Versus if you have high # late payments but low average age account, your credit is going to look like you are always missing things and you are unable to maintain ongoing accounts. But again this is speculation. This would be the most logical rationale I come can up with regarding how your average age of accounts impacts the overall score.
Well said.
 

·
Premium Member
Joined
·
1,291 Posts
As others have said, return it to stock and sell your parts. They go very quickly on the forum. If you don't have a stock exhaust then leave it. Also, unless there is some weird and unusual clause in your loan there is never a pre-payment penalty. I've paid a few vehicles off early and never taken any kind of hit on my credit. I typically take the longest term that the interest rate is consistent with lower terms then plan to overpay from the start and get it done early. That way I get ahead of the payments.
That's exactly what I did with my loan as well, took the six-year financing for a slightly lower interest rate but I'm on track to pay it off in four years.
 

·
Registered
Joined
·
2,252 Posts
Yeah, unfortunately the assumption is that if the car was modded, that probably means it was beat on. Not the case here as I'm actually not a particularly aggressive driver a majority of the time and I've never tracked it, but I understand why people would assume that. Thanks for the tip on the tax ramifications. I had not thought of that angle. I have no idea how taxes work on a private sale either.
Taxes are based off your local county and city taxes if applicable, and you pay the same whether it's private or from a dealer. What changes is usually dealers pay your taxes and roll the cost into the financed amount, private most people end up paying out of pocket for it when they go to get it registered.
 

·
Registered
Joined
·
299 Posts
I don't think you will have any negative effects paying off anything early. But. I just canceled my RS order because I think my ST is too much alike. I've been reading the reviews and it just doesn't seem worth the 12k dollar premium over the ST. with my down payment I just ordered an IC and downpipe, and will be ordering a stratified APv3 with e85 tunes soon. If I were to upgrade, it would be a new camaro SS.
 

·
Registered
Joined
·
171 Posts
When you sell a car privately the buyer pays all sales taxes and fees for registration, title, etc. You negotiate the selling price with them, receive that amount of funds, and you are good. Most buyers will be financing, so their bank/credit union/whatever will handle transfering the title, paying the taxes, etc. If your buyer doesn't need financing, then it's important to be sure they register the car after taking possession so the police don't show up at your house when the car is involved in an accident, crime, etc. Different states handle this in different ways, so check the website of your state's DMV, secretary of state, or wherever it is you go to register a car.
 

·
Registered
Joined
·
76 Posts
Personally, when selling a car in the past, I've used KBB's private party value as my targeted selling price. If you can get that much as a trade-in, that would be the way to go. As for selling it on your own, list it on CL with a detailed service history and tons of pictures. Also, price it accordingly. Look at other CL ads for the model you are selling. Others will often ask for retail value or more, and you will see that those cars will be listed for weeks on end because they are asking too much. As for your mods, I've never modded a car, at least not for performance or appearance, and I would never buy a modded car. As others have said, dealerships often consider mods to decrease a car's value. I believe in being honest, but if you return it to stock and a buyer doesn't ask about previous mods, well, that is the line you choose to walk. When following these steps to sell my Acura RSX type-S, the car was sold in about a week, and the first person who drove it bought it. Lastly, if you do list it on CL, do not change your schedule for anybody. There are a lot of flakes on there, and do not accept a cashier's check, insist on cash or waiting until a check clears to hand over the car. A bank to bank transfer would work as well, just check with your bank to make sure it is legit and the funds are in your account. Good luck and enjoy the RS.
 

·
Registered
Joined
·
458 Posts
Personally, when selling a car in the past, I've used KBB's private party value as my targeted selling price. If you can get that much as a trade-in, that would be the way to go. As for selling it on your own, list it on CL with a detailed service history and tons of pictures. Also, price it accordingly. Look at other CL ads for the model you are selling. Others will often ask for retail value or more, and you will see that those cars will be listed for weeks on end because they are asking too much. As for your mods, I've never modded a car, at least not for performance or appearance, and I would never buy a modded car. As others have said, dealerships often consider mods to decrease a car's value. I believe in being honest, but if you return it to stock and a buyer doesn't ask about previous mods, well, that is the line you choose to walk. When following these steps to sell my Acura RSX type-S, the car was sold in about a week, and the first person who drove it bought it. Lastly, if you do list it on CL, do not change your schedule for anybody. There are a lot of flakes on there, and do not accept a cashier's check, insist on cash or waiting until a check clears to hand over the car. A bank to bank transfer would work as well, just check with your bank to make sure it is legit and the funds are in your account. Good luck and enjoy the RS.
Why wouldn't you take a cashier's check? By definition the bank takes the money out of the persons account as soon as they issue the cashiers check and the bank guarantees the check (really the check is from the bank and not the original person).
 
1 - 20 of 23 Posts
Top