Collecting thoughts

Try to get them to through in an extended warranty. If not don't forget to cancel your extended warranty and get a little money back, then see Troy for another extended warranty for your new one.

 

You are going to pay $7,000 to gain two model years, they look exactly the same, & 20,000 some thousand miles ?
And you do have an extended warranty on your present car ?
Sounds like a NO DEAL to me.
Drive away & save the $$$$.

 

I can't see any downside, and I'm a person who drives a car 10 or 12 years if possible. The only expense you might not have considered is that insurance may be slightly higher on a newer car, but probably not a biggie. I'm always a bit skeptical, I can't imagine trading in a car w/ 22K on it, but that's just me. As always, buyer beware, and good luck with your decision.

 

<div class='quotetop'>QUOTE(seeh2o @ Oct 2 2006, 08:42 AM) [snapback]326884[/snapback]</div>

But how much longer will you have to be making them? I assume that you are adding a couple years worth of payments. When you finish paying the new loan you'd probably have an older car with more mileage than you would have if you were to wait until your present loan is paid off.

 

Keep the 04 in my opinion..... Wait until the 09's to make an upgrade. The 06 really doesn't have anything on the 04.

 

I'm with everyone who says "keep it." If the car payment is all that matters to you, then fine, but I always look forward to the day when a car is paid off! With the new car you're just postponing that day.

 

First let me ask you what is your goal.

Is your goal to own the car free and clear, or is that not your goal? I ask because personally, I have no problem making a car payment (thats why I traditionally lease), car payments for me are tax deductible, and I like driving something new every 3-4 years. Having a paid off car is not one of my goals. The joys of owning something that is paid off are overshadowed with the negatives of owning something old for me.

If you don't mind having payments all the time, do it. 22k miles is a lot for an 06 though, figure out what the maintenance history has been and get it checked out. If I'm not mistaken, you can also get a 2006 brand new package 4 for $24,000. Even if you can't, make sure the payment wouldn't still be less because of the better interest rates on new car financing vs used.

 

My package 3 with 6 miles on it was only $24,000 and I will get the tax back with the tax credit. I wouldn't pay $24,000 for one with 22,000 miles.

 

<div class='quotetop'>QUOTE(Tony_Min @ Oct 3 2006, 12:21 AM) [snapback]327165[/snapback]</div>

That is a great point. The package four is like 24,300 brand new.... With a tax credit and without 20+ k miles on it. If you really want to trade up, get an 07 pacage 2 (the equivalent for 24,300 and a free 1700 tax credit..... you come out with a brand new car and a tax credit..... for quite a bit less.

 

I suppose, based on your "wants," you can rationalize many things.

In considering a trade up to a 2007 from my 2004 (w/ NAV), it appears from offers so far that I will absorb about $2,425 "depreciation" based on trading - that's 11.0¢/mile ($110.23/month) considering the $1,575 income tax credit. If I purchase the 2007 outright and sell my 2004 to an individual the "depereication" would be different since in Texas you pay the 6¼% tax on the "difference."

On the up side, I would be getting: 3 year "jump" on year model, side air bags, HID headlights, leather seats, tire pressure monitor, better MFD, updated NAV DVD, new tires, and a re-start on Warranties (I'm approaching the end of my 3 yr/36,000 bumper-to-bumper warranty).

OOPS!! There I go rationalizing again!!

It all seems to boil down to what you want to do within your financial capacity.