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Logic of trading in

bachorbbachorb Posts: 3
edited January 2016 in General
Hey guys - TL;DR version - help me think of ways to convince my wife to let me get a new car :)

 Full version - I have a 2008 Toyota Yaris S sedan with 135k on it. It is in good shape and was fully paid off long ago. I recently changed jobs and am driving 50 miles a day and am realizing I could use a smoother, quieter, and slightly sportier car. I do a lot of bike racing and we also got a dog not too long ago, so we could use a little more room . We're thinking along the lines of a Mazda3 hatchback, VW Golf, or a Subaru Impreza Wagon.

 I am trying to convince my wife that we should just trade the Yaris in before the wheels fall off so we can get the best trade-in value. She is of the mind that any car you own you have to drive until the wheels fall off because when you get a new car, you acquire debt, and debt always equals bad no matter what.

 Right now I am spending $1.5-2k per year on repairs (most recently needed a new water pump and brake rotors). My economic argument is that with the amount I'm spending on repairs right now, if I trade the car in my monthly payment would only be in the $200-300 range (we have perfect credit) and would be saving on random repair headaches.

 Are there any other good economic arguments you guys can think of for me? :)

 Alternatively, I could always just "forget" to put the car in park at the top of a hill with a body of water at the bottom. Man wouldn't that be tragic....

Comments

  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    You won't like the trade-in offer from a dealer--those are pretty high miles for a Yaris and the dog won't help either.

    The most logical thing to do is clean the car up nicely and sell it privately--you'll get double your money (maybe---what...? $5,000--$6,000?) and then put that all down on the new Yaris. That will give you instant equity in the car and keep payments within your stated range.

    Statistically a car is pretty much used up (the wheels HAVE fallen off) around 175K, so at the rate you're going you have 2 years to make this work.
  • steverstever Posts: 52,462
    edited January 2016
    I don't think the economic argument works unless you start breaking down and jeopardizing your job situation.

    With all the extra miles your driving, I'd use the safety angle. Or just tell your wife you work hard for your money, your commute is long and life is short, so why not make the ride more enjoyable?
  • texasestexases Posts: 8,829
    edited January 2016
    Yep, safety, reliability, and comfort are good reasons, but you won't be saving money. The depreciation costs on a new car are almost always higher than the combined depreciation plus repairs on an older car like yours. 
  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    Safety is a good angle but the money argument would only work if the Yaris had a big repair bill coming up. Even presuming you could spend $150 a month in maintenance and repairs--that's 1/2 of a monthly car loan even on another new Yaris and probably 1/3rd the cost of a loan on something larger and more upscale.
  • steverstever Posts: 52,462
    We aren't helping you get into that Mazda3 or Golf much, @bachorb. :)

    Check out Chronic Car Buyers Anonymous - that crowd can justify buying anything new for the garage.
  • Thanks guys - yeah, I bought the Yaris used 3 years ago in cash from a coworker because I really just needed it for weekend errands and the odd road trip. I had a walking commute at the time, so buying anything nicer just didn't seem reasonable. Since I changed jobs six months ago and spend 1.5 hours a day driving I have a different perspective now - the thing is SO freaking loud at highway speed I have to have the volume at 40 just to hear the podcast I'm listening to :)

    I have to go to the grocery store later and MAN wouldn't it be funny if I "accidentally spilled" a whole bunch of sugar into the gas tank? Man that would sure make me an idiot, wouldn't it! Hope that doesn't happen....

  • steverstever Posts: 52,462
    That trick doesn't work, have to use the stuff they used to kill engines for Cash for Clunkers.

    Chances are your wife doesn't know that though, so just get a bag of sugar and dump it out somewhere and leave the empty bag beside the car. Then yell "HONEY, we got problems!"
  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    If you can't swing a new car, maybe an investment in DYNAMAT would ease the pain.

    But yeah, by all means visit our Chronic Car Buyers Anonymous topic. Those guys are so crafty they could pitch a lamb chop past a wolf.
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