Car finance question for the experts who have bought and sold a lot of cars in their lifetimes.

Question

My car stats : 2003 Audi A6 112k loaded.

64 months left on loan of $10,900.

work needed: Tires at $400. Bearing at $320. Brakes at $275.

My question is... what makes more sense??? Keeping it and putting more work into it???

Or trading it in for another new or used car?!??!

If i keep putting money into it i have a fear that will never stop and i dont want keep draining money into it id rather buy new or a newer used car. What makes more financial sense and what should i do??

I was considering possibly leasing to buy.

Thanks

Answer 1

If you're not a millionaire, you should never plan to maintain a German car.  Write that on the mirror, so you can see it when you shave.

So yes, if money is a concern for you, sell it and buy a car for $3500 that's easier to take care of.  Note, I'm not saying sell it and buy yourself a new car for $50,000.  That's not making you rich, that's making the car company rich.  Your question is about "What makes more sense" financially.

If you are planning on spending $50,000 on a new car, then by all means keep it.  There's no way you can spend that much maintaining it.

64 months on a car with over 100,000 miles, eh?  Wow.  Your car payment must be, what, $80 a month?

Answer 2

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Answer 3

Well, first the harsh part.  You should have NEVER financed a 5 yr old car for 72 months.  That will be 11 yrs old by the time its paid off.  The interest rate is probably not very attractive either, due to the year and mileage on the car.

If you try to trade out, y ou will find that it is going to fetch between $6-9k as a trade in.  You MIGHT do better selling it privately, but I wouldnt expect much more.  Since you didnt specify engine or whether it was quattro, I cant be certain.  Non-quattro, 4-door is about $6-7k.  Quattro v8 around 9-10k.

That means that, on the best-case, you owe 1900 more than its worth.  Worst cast is about $4-5k upside down.

If its the best case, then I would say get out of the car if the opportunity is there.  I like Audis, good cars, but when it gets to be a 8-9 yr old car, you are looking at some dollars for upkeep.  

Try to save your money and be ready to put cash with the car if you do trade.  If you go in, like so many others, with $0 down, you will bury yourself past  your eyebrows in the next car.