Is it worth it to sell a new car towards a newer one?

cj iwakura

I'm about 25% done with my payments(2016 Kia Forte), and I don't have many miles on it since I don't drive far to work, so I keep getting offers from the dealer to sell it towards a new one.

Is this worth it, or is it a trap to keep payments going forever?

Fiendishrabbit

1. Economicly it's probably a bad idea.
2. The Kia has improved a bit in the last two years, both in terms of safety but also has some nifty features like an optional rear-view camera (which makes parking so much easier).
3. It still has a shitty drivers seat for someone that's as tall as me, but it's slightly roomier.

So it's basicly a matter of priorities.

cj iwakura

Fiendishrabbit wrote: »

1. Economicly it's probably a bad idea.
2. The Kia has improved a bit in the last two years, both in terms of safety but also has some nifty features like an optional rear-view camera (which makes parking so much easier).
3. It still has a shitty drivers seat for someone that's as tall as me, but it's slightly roomier.

So it's basicly a matter of priorities.

I'm very happy with my current one, just wondering if I'd save any money or get lower payments.

Fiendishrabbit

cj iwakura wrote: »

Fiendishrabbit wrote: »

1. Economicly it's probably a bad idea.
2. The Kia has improved a bit in the last two years, both in terms of safety but also has some nifty features like an optional rear-view camera (which makes parking so much easier).
3. It still has a shitty drivers seat for someone that's as tall as me, but it's slightly roomier.

So it's basicly a matter of priorities.

I'm very happy with my current one, just wondering if I'd save any money or get lower payments.

Generally buying a new car is an economicly bad idea unless the old one is both out of warranty and regularily needs big repairs.

CelestialBadger

Watch out for "lower payments" because it might be that they are lower, but for a longer period of time, so you pay more in total.

see317

cj iwakura wrote: »

I'm about 25% done with my payments(2016 Kia Forte), and I don't have many miles on it since I don't drive far to work, so I keep getting offers from the dealer to sell it towards a new one.

Is this worth it, or is it a trap to keep payments going forever?

These are not offers, these are ads.
They're trying to get you back to the dealership so they can sell you a new car. You won't save money, you'll just have a new car with new payments.

I'm getting the same thing from my dealership "Oh, your lease is almost up? Well we just happen to have a burning need for your exact model of car, please come in and get a different car blah blah blah, yadda yadda..."

Tofystedeth

The dealership i bought my car at was trying to sell me on trading it in within 3 months.
I let them know that was the dumbest possible thing.

Quid

It doesn’t make sense financially and you’re happy with your current car. Doing this would mean you’re spending more money for something it doesn’t sound like you’re especially interested in upgrading to. I’d recommend against it.

PsychoCucumber

As someone who sells cars, no, it really doesn't make financial sense. The chance you'll wind up with a lower payment is very slim unless your credit has improved drastically since the initial purchase. As long as you don't absolutely hate your current car, and it's still in good shape, probably better to stick with what you have.

Eat it You Nasty Pig.

you are not gonna come away with the new(er) car for less than you're paying now. Dealerships rely on financing for a lot of their margin and this is a way to keep you in that system as long as possible.

you'd have to negotiate how much the difference in payments would actually be but since there's likely little functional difference between 2016 and 2018 models it's hard to see how you'd be getting a good return

the exceptions I guess would be if there's been some radical change in your credit in the last couple years that would get you a much lower payment (unlikely) or if you're prepared to pay in full for the 2018 model now (unlikely the dealership would actually close the deal unless financing is part of it)

Donovan Puppyfucker

Do not sell or trade in your car unless you actually need to do so. Pay off the car you have, and drive it for as long as you possibly can. That's the only way to minimise your costs.

zepherin

I agree with the rest of the comments, paying off the car and driving it as long as possible is ideal, if you are the sort of person who has to always drive the latest car, consider leasing. It’s generally of less value, but it’s cheaper than buying a new car every two years.

Iceman.USAF

If you share with us the specifics of your situation (current loan amounts, terms, etc) we can tell you for sure what the math is. It's almost certain you're better off with your current car.

cj iwakura

Iceman.USAF wrote: »

If you share with us the specifics of your situation (current loan amounts, terms, etc) we can tell you for sure what the math is. It's almost certain you're better off with your current car.

I've been pretty soundly convinced, but it's a 75 month term.

Elvenshae

Eh ... anything over 60 months should be considered very carefully, because with terms longer than that it’s really easy to end up upside down on your loan.

cj iwakura

Elvenshae wrote: »

Eh ... anything over 60 months should be considered very carefully, because with terms longer than that it’s really easy to end up upside down on your loan.

It was my first financing, so I rolled with it.

PsychoCucumber

Yeah, it can be tough when you're just getting established. I wouldn't worry about it too much. Most people are upside down for the first couple years. Best way to get into a positive equity situation is to try not to take any unnecessary trips, keep the car maintained, and, provided you have a simple interest loan, pay a little extra on top of your payment. That'll get you into paying off the principal faster.

mRahmani

Yeah at 75 months, absolutely do not go for the new car. I'm assuming this was initially an 84 month loan? You are most likely underwater on the current loan, so for the next 2-3 years at least you'll want to focus on paying it down. Once your loan balance vs car value equalizes, you can look into upgrading.