Need some advice on buying a 2006 Vue

My wife wants this 2006 Saturn Vue 4 cylinder 5-speed manual they have at Saturn of Tulsa. We test drove the car today and set down with a salesman to discuss options. Here's what we knoe so far. Her 2004 Cavalier will be the trade-in with no other money down. We owe about $10,800 on the car and the dealership says they'll give us $7k for it. So, obviously we're upside down on it, that's not a surprise. The Saturn Vue stickers for $18,800. They told us that we could finance the car for 5.9% or 6.9% for 60 months (with a $1,500. rebate) or 72 months (no rebate). I'd rather the 60 months but they figured at giving $3,800 for the Cavalier, our payments would be $420 a month so that would put the car at costing us $25,200. Or we could pay $376. a month for 72 months and I came up with a total of $27,072., (obviously we go that route they get more overall for the car) so I figured it'll cost us a good bit more to get in this car then the sticker because of the negative equity we'd be carrying over. We can afford to pay $360/month (maybe $376) for the car but I know in the process, we're being taken. They use GMAC for their financing. I know it's best to stay away from playing the payment game with these guys, but we do live on a month to month budget so that always sets in the back of my mind. We haven't agreed on anything yet, and they did run my credit in the end and I did tell them to put some numbers together for us and get back with me tommorrow to see what they can do.

Now the wife really wants to get out of this car and I understand she wants something a bit bigger, as I do to, but I can't stop thinking that no matter what we do, we're going to get hammered because we still owe too much on this car as compared to what the trade-in value is on it.

Another interesting thing that neither of us thought about. The possibility of buying the car, and a few weeks to months down the road, it gets totalled. The insurance company will cover the cost of the car, but not the negative equity carried over from the Cavalier. We would have to take the hit on that amount.

What advice does anyone have? When they call me this morning with their results, should I throw a flat car total at them and say take it or leave it?

Any help is appreciated.

You may also want to consider getting some quotes from the bank for a car loan, you may be able to lock in a lower rate then the GMAC rate ( or you could refinance). Another idea you could look into is getting a Used vue, you maybe able to get a better deal, on one with some miles that is a year or two old. You may not get to far with a flat rate due to it being a saturn and they normally don't negotiate that much. Good luck either way!

You could always look into the leaseing option. No matter what you will always be under because to the balance left on your old car, however it might be cheaper to lease allowing you to put the extra money down on your old ballance.