Trade-in, or Keep?

[Jansroom726]

Hi all -

I have a loan through chase that I got in Jan '13.

The car was $28,000. I put 10k down - so the loan was for 18k at 2.4%

I have 10,000 left on the loan.

The thing is - I would really prefer a newer / sportier car.

I think I am the type of person who would like a lease - as I prefer to have a new car every 2-3 years.

I'm torn between keeping the car until it's paid off. Or, trading it in and getting a lease on a car that I really want.

Somehow I just hate the fact that I've already invested 18k into the car, and it would all be for nothing...

(I do have about 5-6k in car equity that I am ahead - as its worth more than the remaining loan amount).

Any advice? Any more info I should provide...

Thank you.

[black_citi]

I think the real question is how do you feel? Based on what you said, you should go ahead and get the car you want. A lot of posts on here have people upside down on their loans, me included. But you're 5-6k ABOVE! If you have the income to support it, then go ahead. Others may chime in with a different opinion.

If you don't mind me asking, what kind of sporty car were you considering? I'm a car freak lol so I had to ask.

[Jansroom726]

Hey, thanks.

I dont have a huge income - but I budget well, and dont have large debts or other obligations - thus I wouldn't mind splurging on a nicer car.

I was thinking of getting a bmw, audi, or porsche.

I really want the Jaguar F-Type, but $795 a month for a lease is too much, lol!

[black_citi]

Yea that F Type is such an awesome car. I really like what they've done with all their cars actually. If you're EXTREMELY sure you can handle a $500 a month payment (not including the insurance that you MUST have lol) then maybe you can get a bimmer or audi.

But you must make sure you are EXTREMELY sure. $500 a month is a lot.

[mynameainttracy]

I would just advise you to research maintenance costs (like oil changes) if the service isn't included. Also, get insurance quotes before you upgrade.

[ds3]

Always remember that with a lease, the mileage can bite you at the end. With the equity you have, you could buy a $40,000 Audi that would have reasonable payments, and you could drive it all you want. 

[ezdriver]

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@Jansroom726 wrote:

Hey, thanks.

I dont have a huge income - but I budget well, and dont have large debts or other obligations - thus I wouldn't mind splurging on a nicer car.

I was thinking of getting a bmw, audi, or porsche.

I really want the Jaguar F-Type, but $795 a month for a lease is too much, lol!

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I'd recomment that you consider a Mercedes that combines sport with comfort and reliability. You can get late model used/cpo Mercedes at amazingly low prices compared to BMWs and Porsches. I know as I own two E class Mercedes and I just bought a Porsche 911 S4. I've also had BMWs. You can buy a pretty nice late model Mercedes for under $20k ... but not so much a BMW or Porsche.

I once asked a Turkish cabdriver in Frankfurt Germany why he chose to use such a nice E class Mercedes as a taxi. He said "BMW I have at home for fun. Mercedes is good reliable work vehicle and don't break as much as BMWs". I can attest to that.

All the best with whatever choice you make.