I have bought new cars, then gotten rid of them 4 or 5 years later several times. I've finally come to realize how much money I have wasted that way. If you do the math, it spells it out pretty blatantly. For example, I bought a car in 2004. The payments are $490/month. So, to date it's been 43 months. So, I've paid about $21,000 so far. I owe about $13,000 on it now and it's worth about $10,000.
So, I've paid $21,000 over the last 4 years to have -$2,000 in my car. So now at this point, I could roll it over into a new car and be in the same situation (or worse) in 4 or 5 years). Or I could keep it for another 4 years and put that payment in the bank after it's paid. It will be paid off in about a year and a half, so at that point I'd have the loan paid off and 30 payments (about $15,000) in the bank. That's not counting any interest I could earn on it. Then I could buy a car outright that's a couple years old.
By the way, since I haven't been this disciplined in the past, I'm part writing this to convince myself to hold off buying a new car. Also, I have about 45,000 miles on the car, so I don't anticipate spending a lot of $$$ in car repairs. Since your car has 95,000 miles on it, that's a little different.
Either way you go, good luck! :-)
So, I've paid $21,000 over the last 4 years to have -$2,000 in my car. So now at this point, I could roll it over into a new car and be in the same situation (or worse) in 4 or 5 years). Or I could keep it for another 4 years and put that payment in the bank after it's paid. It will be paid off in about a year and a half, so at that point I'd have the loan paid off and 30 payments (about $15,000) in the bank. That's not counting any interest I could earn on it. Then I could buy a car outright that's a couple years old.
By the way, since I haven't been this disciplined in the past, I'm part writing this to convince myself to hold off buying a new car. Also, I have about 45,000 miles on the car, so I don't anticipate spending a lot of $$$ in car repairs. Since your car has 95,000 miles on it, that's a little different.
Either way you go, good luck! :-)
@Anonymous wrote:I have an 04 Mitsubishi Endeavor it has 95K miles (we went on a ton of road trips last year), the pay off amount on the loan is 17500, but KBB says it's only worth 6500 in fair condition for trade in value. Is it even possible to rollover that much negative equity? I know I could get a better interest rate now with my getting better credit score (EQ 655) , (currently in DH's name at 10.7%) Should I suck it up and keep making payments or try and trade in or refinance?
