Need advice on a car I bought!

[Chris B.]

Last year I bought a car on impulse! It is a Volvo S60R and I always wanted one. I found a super clean one and I just had to buy it! I already have 3 other cars so a year later juggling 4 cars is turning into a huge inconvenience. I decided I need to sell the S60R because it was just a weekend car for fun and it is not really worth all the extra expense.
I financed it. It was $11,500 and I bought a 36,000 mile warranty that was very extensive and that was another $3000. I currently owe $12,000 on it. My question is should I sell it with the warranty or cancel it? If I cancel it I will get back around $2,000 so I would owe about $10,000 and that is about the high end blue book value of the car. Or should I sell it with the warranty for $12,000? Some buyers might like having the warranty.
What is the forums thoughts? Thanks!

 

[OtisBlkR1]

Keep the waranty and let the buyer decide.

 

[KB2008X]

Originally Posted By: OtisBlkR1
Keep the waranty and let the buyer decide.


+1

Wait and see what the buyer wants.

 

[salv]

Cancel the warranty and list it for $12,500

 

[Artem]

Originally Posted By: salv
Cancel the warranty and list it for $12,500



Haha. X2!

 

[Wolf359]

It doesn't really matter because you're not going to sell it at the price you're suggesting. If you listed it with the warranty, no one is going to call because it's way above book value. If you get rid of the warranty, you still owe more than what you're going to get so you've got to be willing to take a bath on the sale because that's the penalty for making mistakes. You are merely compounding your mistake by trying to break even which means that you'll be holding onto it longer while the retail value declines each month. Also blue book is typically quite inflated which is why dealers are always able to sell below blue book. You'll be lucky if you can get anything about trade in value on nadaguide.com.

 

[eljefino]

As a buyer I would be concerned about the warranty not transferring "cleanly". IMO it would add the value of an aftermarket stereo... or a pool to a house. IOW, pennies on the dollar.

How does the warranty work, if you never use it, you get prorated? If you spend a nickel, is it worthless? You could mention to a prospective buyer that it's under warranty and if he or his mechanic finds anything you can have it taken care of before sale.

 

[cashmoney]

To maximize value make sure you handle as two separate negotiations and you do not mix the two transactions. Keep warranty for now and then offer to sell the warranty to the buyer after (not before) you have negotiated the price of the car alone. If you can't get more than cancellation refund from the buyer then cancel the warranty and get refund right after the car has been sold.

 

[Pop_Rivit]

You financed it because you couldn't afford it, and after a year you're either treading water with the value or upside down (depending on how you spin it with the warranty). Chances are when you sell it you'll need to bring cash to the table in order to unload the car.

The warranty offers little to the buyer, and you also have the lien to work through. If I were a buyer I'd pass-an extended warranty is worthless, and dealing with a private seller who has a lien on a vehicle isn't worth the hassle, especially when the seller is upside down.

Find a way to get it paid off and then you can offer it for sale without the warranty. But be prepared to get less than you owe on it, and hopefully you'll learn from this mistake.

 

[Eddie]

+1: Pop_Rivit and I agree and especially the first statment. A finanical manager can be usefull in future finanical decisions. Ed

 

[Donald]

Weekend cars bought on an impulse should be paid for in cash. Dump the warranty and sell the car. As others have said, you will need to bring money to the table.

 

[Kira]

Hello, What year and mileage? I ask because I'm on my second V70. Great cars if you do some work yourself. Alas, the Volvo cars are "desired" by many who do no such work. Run free ads on "www.brickboard.com" and www.ipdusa.com" website. There's a "volvoforum.com" website, but few people go to it. There's a V70R website too. PM me and I'll mention your car on the English board I belong to. There are US citizens who read it.

If only it were a V70. Kira

 

[dparm]

I'd hang onto the warranty at this point. Nice car, I always wanted one of those.

 

[Quattro Pete]

Originally Posted By: Chris B.
If I cancel it I will get back around $2,000

On a car worth $10K at best, I don't think any buyer out there is going to give you $2K extra just because the car has warranty. I would cancel the warranty and get your $2K back.

 

[supton]

If the warranty will transfer w/o no issue: try advertising it as is, with the warranty. Maybe you'll get lucky. If it doesn't sell after a while, you could then try canceling warranty and getting some cash in pocket, but IMO it's a selling point, and the original post doesn't make it sound like you are hurting for the money. Just don't want the "inconvience".

I'm guessing no matter what you are losing money on this, above and beyond depreciation. I'd call it the cost of short-term car owndership if not just depreciation and just move on.

 

[gofast182]

Originally Posted By: Pop_Rivit
You financed it because you couldn't afford it, and after a year you're either treading water with the value or upside down (depending on how you spin it with the warranty). Chances are when you sell it you'll need to bring cash to the table in order to unload the car.

...

Let's be careful not impugn people who finance cars as a whole because most people purchase cars in that manner. One can finance a car and be responsible about it, it's over-extending oneself that's the problem.

 

[BHopkins]

Advertise it at a fair price for without the warranty. If you get a serious buyer, offer the warranty to him for extra. If he does not want it, cancel the warranty.

 

[kkreit01]

...and next time, don't buy a $3000 warranty on a $11K car!

If you cancel the warranty, you probably won't get the full $2K back -- if you are 1 year into a 3 year warranty. They take some fees up front, so the finance manager's and salesman's wallet gets thicker.

 

[SatinSilver]

I think the car looks great! Linky:

http://www.bobistheoilguy.com/forums/ubb...911#Post2819911

 

[Chris B.]

Thanks everyone! All good points! I'm not hurting for money at all. I'm a car nut and "collect" cars but now that I have 4 of them it is getting really hard keeping up with all of them in terms of detailing, maintenance etc. I just need to down size and get a grip on everything else. The R is the most expensive to fix and maintain so I'm going to let her go to a new home.