What would you do?

racer2016

Here's our situation...

We currently have a 2015 MDX with 35,000 miles on it. Payments are $500 per month. Payoff amount is a little less than $19,000.

My kid hit another car while parking causing estimated $3000 to fix. (front passenger side) Our deductible is $1000 insurance will pay the rest.

Dealer is offering us $32,500 to trade it in as is for a 2017 MDX - With trade, payments will jump about $160 per month.

Is it worth it or should we just fix the "old" car?

stever

The $2,000 repair cost will get eaten up by 12 payments. How many more payments will you have to make on the 2017? Do you usually buy new every 3 to 5 years? Do you always a payment?

You can appraise the 2015 here and get an idea if the dealer's trade-in offer is okay.

Mr_Shiftright

Gee this is a tricky one. Like Steve says, we don't know your financial situation. Speaking only for myself, I'd tend to not only keep the old car, but maybe not even file a claim and shop around on my own to find a shop to fix it for less than the damage estimate if possible. I'm a bit concerned about your insurance rates.

But yeah, appraise your car first as you would have 30 seconds before your son's accident. Sounds like your equity in the new car deal is $13,500. So then price out a new 2017 to the same spec as the dealer's car using the $13,500 as a down payment and see what numbers you come up with.

racer2016

Thanks for the answers. You are correct in the $13,500. We did talk to the dealer and thats the deal. With the $13.5 we would increase our payments by $160. Just not sure it pays for only 2 years newer. I think we are going to fix it and keep it a few more years. Will probably trade when they redesign the body.

Insurance is already involved due to damage to the other person's car, although we have not told them anything yet about our car.

kyfdx

racer2016 said:

Thanks for the answers. You are correct in the $13,500. We did talk to the dealer and thats the deal. With the $13.5 we would increase our payments by $160. Just not sure it pays for only 2 years newer. I think we are going to fix it and keep it a few more years. Will probably trade when they redesign the body.

Insurance is already involved due to damage to the other person's car, although we have not told them anything yet about our car.

How many years do you have left on your current loan?

racer2016

3 years left.