Apologies, long winded. But the idea: Get a new car or not.
Title says it all. Don't worry about what kind of car (then again, all ears for a solid 3rd row SUV for $35k or so)
Married, two kids (5 and 2.5). Live in DC so we get all four seasons, snow, ice, rain, sun, you know the drill.
We have two cars.
- My car: 2009 Honda Accord. Paid off. 120k miles. I drive about 50 miles a week on this. Pretty much strictly to work and back. Rarely for anything on weekends.
- Wife car: 2017 Hyundai Santa Fe Sport. $5,500 left on loan (18 months). 50 miles a week as well but also used for road trips all around town and Pitt, FL, etc with the kids.
- Current loan is 3.89%
- Loans for used cars today seem to be 6-7%. Not ideal.
Kids are getting older, larger, and will need more stuff. Also when family comes to visit with car seats and junk, we have to take two cars. Or I take an Uber and meet them where we go, regardless, not ideal but not anything causing major strife.
Trade in for my Honda is anywhere from $4-5k right now. Probably $4k.
Trade in for the Santa Fe is about $15k or so.
That means we have $5k more baked into the Santa Fe (as of today) if we wanted a new car compared to my paid off Honda and use the Santa Fe as the trade in.
The Santa Fe is a much nicer car than my Honda. My Honda will eventually break. But who knows when? 10 years? 20? It has 120k miles. Santa Fe has 50k miles. We use this for the road trips.
Really- main reason for this: we want the third row.
I can trade in the Santa Fe today and get a 2021/2022 Palisade or something similar (don't worry about what we get) for about the same monthly payment (maybe $50 more a month).
OR
We trade in the Honda. Keep the Santa Fe (becomes my car) and get the Palisade (or something similar).
Now we have two newer cars.. but two payments (albeit, only one within 18 months or so).
What would Dungeonites do here?
The idea to have two “newer” cars, and both being an SUV is appealing. But I really like my paid off Honda.