my wife and i got a 04 acura tl w/ 40k miles a few months ago for around 15k (we have another car ford escape 01 - 130k and it’s paid off)
we just found out we’re having a baby - woohoo!
but i’m now wondering - do i keep the acura, still owing about 14k or get another car (i.e. mazda6) for around 10k?
sacrifice higher monthly payment for reliability or gamble with a lower mo. payment w/ another car
If the question is to get rid of the Acura for a Mazda, I say no. Unless the Acura is a coupe. The $4k price difference between the two sounds good. The problem is you will probably loose $2K in tax and registration fees. The resale on the Acura would not be the same amount you paid few months ago, esp since you bought it from a dealer and now are going to sell as a private party. I think in the long run the Acura will provide better service with less maintenance cost.
'grats on the kid.
You’d be lucky to break even on the Acura if you sold it right now, then you’d be another 10k or so in the hole again with another used car you might not be so sure about.
As long as your Acura and Escape are running good, keep them
Home equity loans are at good rates, a financially dumb, but monthly wise payment alternative is to refinance and roll the car owed balance into the new mortgage, if you are going to get killed by the car payment, my suggestion if you refinance you get a fixed rate. Is the Mazda 6 used? or new? how much a month difference in payments would you net?
Congratulations!
As “The Hitchhiker’s Guide To The Galaxy” recommends; DON’T PANIC. Take your time and think this through. The baby won’t be here tomorrow.
Now is the time to be honest with yourselves about your financial situation. What can you afford, really, and what is most important to you? Perhaps you can keep the TL and continue making the payments, perhaps you cannot. We don’t know enough about you to give good advice. Only you can decide what’s best for you.
Good luck.
I agree with galant, it would not be a wise financial move to trade the Acura for the Mazda. Additionally, the depreciation will probably be less for the Acura too as it will hold its value more than the Mazda. The $100 per month difference in the car payments will be worth the small investment. Why do you want a Mazda 6? Good Luck, VoyagerOne