Car Value Question ans Scenario

[eltaur2000]

Current Car $9,000 (9k in luquid asset) = $83 a month payment after Illinois exception.

New Car $30,000 + 4000 Financing + 3000 Tax = $37,000

$37,000 - $9000 = $28,000 loan

New value asset = Car Worth $30,000 - $28,000 = $2000

Illinois exemption is $2400 that means I have no value assets correct?

Wich means I pay nothing back to secured lenders from this asset?

There will be at least a 3 month period before I file.....

Attorney said go ahead and buy TODAY. I just thought about this and it's basically a win and win situation.

I'm giving away my asset of 9k but I'm keeping a new car and the end of the 60 months my Maxima will be worth like at least 13k - 15k.

Plus cars loose value as soon as you leave the lot so it will not be worth 30k in 3 months anyway

[AZNoName]

I bought a used car for 21K in may, and i estimated (trade in value) as 14K when i filed BK 5 months later.

Do you know you can get 9K for a trade in?

Even if your depreciation doesnt cover all of the equity you put into the vehicle, it will probably be pretty close?

[eltaur2000]

Yea thats what Nissan and VW are willing to do for me. The car is worth about 10k at the dealer but it's scufled and had some accidents so its worht more like 7.

But am I right? Essentially the taxes , financing , depreciation of the new vehicle and Illinois exception will eat up the entire 9k asset I have in the car correct?

[AZNoName]

Whats the trade in value of the vehicle you're looking to buy?

[eltaur2000]

By the time I file it would be like 27-28k but my debt on the car will be like 28k at the time also.

[ValleYum]

Current Car $9,000 (9k in luquid asset) = $83 a month payment after Illinois exception.

New Car $30,000 + 4000 Financing + 3000 Tax = $37,000

$37,000 - $9000 = $28,000 loan

New value asset = Car Worth $30,000 - $28,000 = $2000

Illinois exemption is $2400 that means I have no value assets correct?

Wich means I pay nothing back to secured lenders from this asset?

There will be at least a 3 month period before I file.....

Attorney said go ahead and buy TODAY. I just thought about this and it's basically a win and win situation.

I'm giving away my asset of 9k but I'm keeping a new car and the end of the 60 months my Maxima will be worth like at least 13k - 15k.

Plus cars loose value as soon as you leave the lot so it will not be worth 30k in 3 months anyway

Finance costs don't count in determining the amount of your loan though.

$30k car + $3k taxes = $33k total sales amount - $9k trade in = $24k amount financed

That leaves you some equity to be concerned about. How much the car will depreciate will matter a good deal.

[eltaur2000]

Depreciation is the key word.... The car that I'm buying right now for 33k is worth 25 private sale on blue book. As soon as the wheels leave the lot its dropping 5-6k

[ValleYum]

I understand - just making sure you weren't running your numbers wrong - not wanting you to make a costly calculation error.