[USER]

I need a new car and need some advice. I owe about $4K on my 2011 w/ 155K and am looking for a new car. KBB on it is maybe $2K.

I have money saved for a down payment but should I pay the car off instead? I won’t have too much left as a down payment but at least no funds roll over to the new car.

The car will be new to me, not new new.

Thought this would be my ride of die car but it needs repairs that just don’t make sense for its value.

[Emily]

Trade it in for a low mileage used car. They may give you above KBB for your old car especially if it’s in nice shape.

If you absolutely need a newer car don’t go into more debt than you have to.

[Christina]

Do not go into a new car with debt on the previous car.

[Dorie]

Pay off the old car and drive it until it falls apart. Sock that money away.

[Annette]

It is difficult to give sound advice without knowing the whole of your financial health and what kind of deal you can make for the car.

With that said, I am a big fan of not paying interest on anything I am never going to get my money back from.

Also, Toyota and Hondas last ages if you take care of them.

[Diane]

See if you can sell the car you have for payoff..If not see if the lender will give you an early payoff amount.

In the mean time drive it and save more for the DP.. Do you get a sizable tax refund?

If so, the EP might be your best move.

[Brian]

See what they will give you on trade. Try negotiating the trade value more than reducing the price of the car you are buying. Saves you the sales tax.

Don’t worry about rolling anything over to the new loan. Get gap insurance either through the dealer or your car insurance.

See who is cheaper. Only put money down a car if you need to because of credit.

[Antonia]

Right now you are upside down on the loan. Trade it in and that negative equity comes with it.

[Trish]

Get another quote to repair. Look at buying the parts and paying for only labor. We do that often and reduces costs substantially.

As an aside, if you’re paying $350/ month insurance for a 2011, what will it be for another car?

You should consider that as well.

[Melissa]

Continue driving your 2011 until it is paid off. Save for a new to you used car. Combine your savings plus whatever you sell the 2011 for the newer vehicle.

Why you are still paying on a 2011 (14 years old) vehicle is beyond me.

If you can keep the old one running and save until you can pay cash.

[Charlotte]

We really need more info, as to make of car and what kind of repairs. 4k is not a lot of money owed.

You get another car, you get to start over with a note and your new used car is going to need repairs, but now you’ve got new note with longer pay out.

You will never catch up when you have a car payment.

The interest will always eat into KKB value of car and leave you with a payout.

Imo, try to get your car repaired, pay it off and love it!

[Summer]

As others have said. do not put more money into your vehicle that has issues and is dying bit by bit – it’s a waste.

Find the vehicle you want to buy, negotiate a good trade-in for yours to cover the payoff or as close ad possible, and get your new to you vehicle – soon – before your trade-in dies completely!

Do not put any of your saved money into the deal unless you have to due to credit or something.

Just take the car loan hit, and pay ahead on the monthly payments instead of wasting any more time or money on your current vehicle.

You’ll come out better in the long run by not wasting any more time or funds that you have on hand. (btw – this advice is from my banking background.) Best wishes!

[Jennifer]

Being a dealer… trade it in and give dealer down payment. Alot of the time you have to wait for the loan to fall off your credit if you pay it off.

And that can affect your interest rates.

Dealers have special software that “speaks” to lenders and can accurately describe your situation.

Additionally we are buying credit in bulk and can generally pull a favor or two to get you a better deal with the lender.

[Tommy]

What needs to be repaired on your car? It has such low mileage.

[Janet]

If your car is otherwise reliable, I would pay for the repair. Newer car means higher insurance premiums

[Author]

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