What is keeping you from just staying with your current vehicle? Usually that is the least expensive option long term, and that should get you to a point where you are out of debt and have higher scores sooner than incurring new debt for a new(er) car.
@BuildingDreams114 wrote:My current vehicle has 170k miles on it. While it has no major problems presently, aside from needing shocks, it goes without saying that it is only a matter of time before a larger issue arises. My family also needs to travel a lot as we live in a very rural community and so our day to day isn't a matter of 2 miles here and there. It will definitely need to be traded, at least by early next year, at the latest.
The fact your vehicle has 170,000 miles on the clock does not in any way mean a prohibitively high cost repair will arise; the fact is, these days, many cars are considered barely broken in at that point. True, older cars need more care, but even with the periodic extra expense, they are also still considerably less expensive on an annual basis compared to a new(er) car. Said another way, I don't accept the "...goes without saying..." premis; some of the most reliable cars I've ever owned had well north of 200,000 miles on the clock.
@BuildingDreams114 wrote:The engine blew at 125k and I had to replace with a used one, so it's not even on its original engine at this point.. This isn't one of the 'good old cars' from before everything went digital and we could fix it all ourselves. It's a 2016, that I still can't do half of it on my own.
Sounds like a Kia or Hyundai.
Still even so, and engine and some shocks are a lot cheaper in the long run that a new $24K auto loan plus $3K of negative equity. Based of the numbers you listed in the first post, I'm going to assume the APR was 12% for a 72 month loan, so here is what I calculated.
- Newer Vehicle Price: $24K
- Sales Tax: 4.99% (National Average) = $1,197.60
- Down Payment: -$500
- Negative equity of 2016 vehicle: $3K
- APR: 12%
- Term: 72 Months
For a monthly payment of $541.49.
The behind the scenes math is :
- Amount Financed: $27, 697.60
- Total Interest: $11,289.68
- Total TRUE Cost of newer car: $39,487.28 (-$500 down payment)
- Total Loan Payment: $38,987.28
@Patient957 wrote:I have an 02 Lexus with just over 190K. Paid $3100 for it during the before-times, late 2019 in fact, so just before.
I drive a 2000 Avalon, practically the same car as your Lexus without the fancy interior trim. Mine only has 160,000 miles and I paid $1,700 for it. I'm going to drive it until it dies on the road, then have AAA tow it to the pick-and-pull and get $400 back.
OP, I'm going to agree with the other posters here: find a more reasonably priced vehicle that meets your need and is within your budget. I understand the worry with driving an older car that needs some work. But, the solution doesn't have to be getting a new or expensive car. Try finding an older model with less miles. Those can be great vehicles. I found a 2004 Sienna for my wife that only had 95,000 miles on it for $4,000. I had to change the timing belt for $1k, but I have put 25,000 miles on it since and it should go another 100,000 miles at least. If you are willing to drive a not-so-cool older car, you probably can accomplish some of your financial goals quicker. Good luck with whatever you decide.
@citymunky wrote:
- Total Interest: $11,289.60
This hurts me just thinking about it. I despise paying interest.
I know with 100% certainty the OP can find a reliable car for waaaay less than $24k. Toyota, baby. That's where it's at.