Does it make sense to sell 2-year-old car and buy a new one?

[Lucky]

Originally posted by: Willoughbyva
Unfortunately I have to make payments on my used car. Can you do your own mechanic work?

You might be better off in the long run selling your car and buying another less expensive car. Get one with a good drivetrain though. The lesabre has a 3.8 with aod. That is a pretty durable drivetrain, plus it is very popular, so I can go to the junkyard and get parts very cheap. I had to replace the motorized radio antenna the other week, $12.00 at the junkyard. Where I am, there aren't a lot of foreign cars at the junkyard, so you would have to buy new parts.

funny enough, we just bought a 94 lesabre limited with 105K miles (all options-sunroof) for $1500. But that's our second car, can't do with just one.

 

[sygyzy]

Of course it doesn't make sense but it's fun!

 

[Lucky]

I'm really not trying to talk myself into this, but does someone care to explain why it doesn't make sense? Yes, ideally you'd drive a new car till for a long time. 8-10 years or more, to get the full value of of the car. However, I drive a lot. 25K/year or possibly more. At 8-10 years, I would probably be facing major repairs. Hell, probably before then. At my current rate, if I pay my car off on time, in 3.5 years I will have at least 130K miles. I might be able to get another 50K miles out of it before it will start requiring some major repairs, if I'm lucky. So maybe 7 years. That's $2600/year averaged for what I paid, not counting out of warranty repairs. About exactly what I'd have spent the last two years if I trade up to the newer model. Of course there would be a small resale value at the end, but how much I don't know. Would it balance out the out of warranty repairs for the 2 more years that a 2007 model would be under warranty?

I'm not coming out ahead, but I'm not coming out behind either, it seems.

 

[CTrain]

Originally posted by: Lucky
tc

I figure it was but I thought it couldn't be a full 2 yrs yet.

Second, do you think you can sell it for $13.5K ?
Just because its the value of the car doesn't mean you can sell it for that.

Third, I would trade it in only if it was for the sries2.0. I love that color.

 

[Lucky]

"Just because its the value of the car doesn't mean you can sell it for that. "

I am fairly confident I could get within 3-5% of that, if not the full amount.

 

[Regs]

If you can handle the extra financial burden - surely. I recently started eyeing new cars while still making payments on my current car. I simply just started doubling my payments to pay off my current car and make no plans on getting a new car until my current is paid off.

No, I find it makes no sense to pay for two cars at once.

 

[WildHorse]

Buying a brand new car doesn't make sense period.

Waste of perfectly good money that could be invested & work for you.

Cars are losers.

Rule of thumb: never buy a brand new car

 

[funboy6942]

I drive a like new 1988 Pontiac Firebird I paid $2000 for. It has a new engine, trans, fuel pump, tank, and a slew of other new parts. There is absolutly for me no reason to ever need to really sell it other then if I need money or find another hellova deal. You dont need to always buy new all the time you just need to know cars and parts/repair costs if you do the work yourself or have someone else do them. New cars break just as fast sometimes as a used one you may pick up. Granted you got that warranty but if you take my car for instance if it breaks (majorly) a engine rebuilt is $500, tranny $500, rear end $200 why would I even if a new car comes with a warranty spend $15k+ when if it breaks out all at once Im looking at under $3000 with parts and labor and another 100K easily. All else that fails is maintanace since my car reall yhas no real computer controller crap to speak of. And if the engine thows a rod and needs to be replaced Im striping the computer crap out and putting in a carb'd motor.

It is crazy how some people think having a warranty is the only way to go. I been buying and selling cars since the age of 14. Im now 34 and have owned over 400 cars in my lifetime. Some of which I paid $25 that ran and drove and needed no more then brakes and a tune up and no more paid then $8000 on a van I traded in for a 98 Jeep Cherokee with Inline 4.0 6 banger with 91K and a 97 Taurus SHO I turned right around and sold for $3500 and bought the Firebird. Other then that the majority was never over $800.

You dont need new, no point. If you dont know cars there are services that do and will check out anycar for you for a small fee. But buying used or if warranty is a must have you can buy a extended warrantyon almost any car including at the time you buy your new one. IN fact OP call the dealership you got your car at. As long as your still under the factory warranty you can buy and extended which would be much cheaper then what you thinking of doing.

And BTW rolling over into anything else is going to screw you for years to come because that roll over you will never get away from, EVER, for a car depreciates and the roll over will just keep that used car at a figure you will have no choice but to keep it till its paid off. And thanks to the roll over you will have to pay atleast more per month or more total months and by the time you get close to paying it off your "warranty" will be far gone and your stuck with a super high milage car, worth way to much you cant get out of it, and if it decides to break on you, at that point your looking a mega bucks repair bill and still have to make your payments on it including insurance.

Again why I drive a old GM where parts are a dime a dozen, cheap, and easy to fix myself.

And BTW this is my car. Doesnt always have to be brand new to have something good 😉

 

[Lucky]

No, I don't NEED new. But my job requires me to have a reliable car-that can get to work or out in the field on a moment's notice. I am paid a mileage allowance for this. It isn't practical for me to consider buying a semi-junker with thought of "oh, I can just rebuild the motor, trans,etc.." if it breaks. I don't have the luxury of that downtime.

Funboy, I don't think you understood my post. I am not upside down in my loan- there would be no "roll over". I am break-even right now. In fact, perhaps slightly up. I won't be paying more per month (actually probably slightly less).

 

[funboy6942]

My bad and appoliges. Im on my meds right now and I guess I didnt read it fully 😱
Well hell if you think you can do it without being upside down my only advise to you would pick up and quality extended warranty package for it. So this wont happen again and should, depending on which you choose, last the term of the loan with any luck.

 

[sygyzy]

Sorry if I missed it but can you post what car you have and which you are considering?

 

[iroast]

Drive your car till it dies. Then buy a certified used car.

 

[BoomerD]

I really don't see a problem with this. YES, you take a HUGE hit on the vehicle depreciation the second you drive a new car off the lot, but that's just the way it is...New car, (usually) safer, better technology, better mileage, more warranty, that "new car smell", etc...It's all on what YOU want, and what YOU can afford. I had an uncle who bought a brand new Olds 98 EVERY year. (he died in the early 70's) Why did he do it? Because he could...The dealer he did business with always gave him top dollar for his trade-ins, and gave him fleet prices for the new cars, so he really didin't get hurt much by this, and continued to keep a new car. BTW, this was back in the days of 12 months/12000 mile warranties being standard from ALL car companies...

 

[azoomee]

If you're worried about the $$ keep it -- if you have alot of $$, then get rid of it. The depreciation rate will actually decrease and you'll eventually end up paying off the car. It will be great to go month to month without a car payment eh?

 

[thomsbrain]

only you can decide if that is an acceptable amount of money to pay per year just to own the car. you get your mileage reimbursement regardless of what car you drive. you can either throw it away on a payment or save it. i drive a similar amount (maybe more), and get a reimbursement that could cover a car payment, but the car in my sig has served me well. but the flip side of that is that my car is old, loud, and looks like a heap. so you just have to decide where you want your money to go and how much the luxury of ANOTHER new car is worth to you.

 

[FoBoT]

no
unless you are rich, then do whatever you want with your excess $

 

[desy]

OK a private car you keep it til the wheels fall off.
A business car with writeoffs etc require more math.

Negatives on the car 1 Accident 2 Usually you can only write-off a certain % then no benefit. 3 Like you said you need a reliable car and downtime isn't a good option and warranties are nice cushion.

If it didn't have the accident, I'd be inclined to keep it esp if its running solid but you might want to take this to your accountant.

 

[boomerang]

Originally posted by: scott
Buying a brand new car doesn't make sense period.

Waste of perfectly good money that could be invested & work for you.

Cars are losers.

Rule of thumb: never buy a brand new car

If everyone took your advice, what would you be buying?

 

[piasabird]

Will it make you happy is what you should ask yourself. If you are going to make payments on that car or some other car it does not make much difference. A car can be a status symbol, a recreational vehicle, a mere workhorse, or an investment. Depends what makes sense to you.

 

[boomerang]

Get the new one. Your reasons for wanting a new one are sound.

You need your car for your work. You're in a good postion right now to move into a new vehicle with a minimal cash outlay. You are reimbursed for a good portion of your expenses.

New car, new warranty. Do it and feel good about it.

Don't listen to gearheads who live to work on their cars, or people who can't afford a new car and justify it in their minds with some twisted logic.

Make it so.

 

[Blazin Trav]

How about do what you want to do if it does not make you any less financially stable...

 

[wasssup]

Being that it was in an accident I would get rid of it (especially if you won't be losing much). I don't trust heavily damaged cars...the structural integrity is questionable at this point (the bodyshop might have done a good job, but are you willing to trust them with your life? Chances are you (hopefully) won't have to worry about things like this, but i'm not one to take a risk.

 

[Noirish]

just remember : when you take a car off the lot, you lose 10% instantly.

 

[quikah]

Are you sure you can get that much for it? Sure it is only 2 yrs old, but being in an accident and that many miles? If you can get that much for it, I would do it, because your current car was in an accident and has high miles. 🙂

 

[jagec]

Originally posted by: Lucky
I guess I'm not understanding why it's bad financial sense.

Which explains why you're driving a new car in the first place, I suppose.