Car help?

Discussion in 'Teacher Time Out' started by scienceteach82, Oct 21, 2008.

  1. scienceteach82

    scienceteach82 Cohort

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    Oct 21, 2008

    Hey everyone...question...

    I got my car...2007 mazda 6 last year...and b/c of my credit the interest rate was high. I needed a car badly...and I got the car at a really good price...fit my budget and everything.

    Now that I have a higher income, less debt, and history of car payments...my score went up 60 points...so I can qualify for a 3.9% rate on a 2009 mazda 6.

    For the total amount I will pay for my current car...it would equal the total amount I would pay for the new car with the lower rate....just extend the loan by like 18 months. I could always pay it off sooner if I put more down.

    The thing is...I don't need a new car...but I would never be able to refinance for the 3.9% that I can get on a new car loan.

    It makes sense in the long run...cause I'd be paying the same amount of money...I'm just nervous about it.

    I work at the dealership part time...haha...so I get employee pricing, along with other incentives to bring the price about 3k below invoice.

    If the car would be the same price as what you are paying in the long run...would you do it?
     
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  3. giraffe326

    giraffe326 Virtuoso

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    Oct 21, 2008

    If the payments are the same and you are not upside down at all, I would do it. After 3-4 years, you typically run into repairs. So, a new car, under warrenty, could actually save you money in a way.
    But, if you are upside down, I would not do it.
     
  4. scienceteach82

    scienceteach82 Cohort

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    Oct 21, 2008

    not upside down...might have like 100 dollars of equity...

    thanks for the response :)
     
  5. mmswm

    mmswm Moderator

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    Oct 21, 2008

    I agree with giraffe. As long as you're not upside down on the loan, go for it. You might actually be better off with the new once since the old one will start having normal aging car issues.
     
  6. irx7fani

    irx7fani Rookie

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    Oct 22, 2008

    I dont' think you should do it. I think you should finish off your payment and try different brands. I love cars and all cars has a different feel to them. All have good points and bad points, so sometimes after a while, I get bored with one brand and go to the other. Since you drive a Mazda 6, i taken that you like performace sedan; Nissan Maxima or Ultima is probably in the same class; might want to test drive them. The Accord V6 is also good in that category. I wouldn't recommend a Camery since their steering is so soft, definately not good at high speed. But you get the point, test drive before you buy =)
     
  7. scienceteach82

    scienceteach82 Cohort

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    Oct 22, 2008

    true, but mazda is much more feature rich for the price

    thanks for the input :) I will take a look at the other cars to compare
     
  8. Sarge

    Sarge Enthusiast

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    Oct 22, 2008

    The bottom line is how much will each car will depreciate and how much total interest you will pay in the long term. You will pay less interest, but the 2009 Mazda will depreciate faster than your 2007 Mazda.

    When the cost of driving is calculated, interest and depreciation are what matters.

    As far as maintenance is concerned, most financial advisors agree that it's cheaper in the long run to drive a car into the ground than to go out and buy a new one in anticipation of problems that haven't happened yet.
     

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