Sell 03 Honda Element and Buy 05 Infiniti G35, or pay off and keep the Honda Element?

Question

I made a decision a few years ago to try and save money & gas by selling off a Lexus RX300 (and a $400+ a month car payment). I decided on a compromise vehicle and bought a 2003 Honda Element. I figured my dogs would like it, it would be easy to clean, and gets decent fuel mileage. It has been a rock-solid, reliable vehicle, although it has 80,000+ miles on it.

However, I now miss having a nicer, more powerful performance car. The Element is spartan, not even having carpeted floors. The Element feels like it will tip over taking any turn at over 15 mph, and it brakes like a dump truck. And, lets face it, it kinda looks like a toaster with big plastic body panels on wheels. I'd like to get something like an 05 Infiniti G35, with 35,000 to 40,000 miles.

After selling the Element and putting some extra money down, I can buy a G35 and have the same monthly payment I have now over a 4 year loan - it would easily fit into my budget. Or, I could also just take that extra money and put it towards paying off the Element, which would then be paid off in about 6 months or so. The Element will probably go for another 2 - 3 years without having any major issues outside of routine maintenance, maybe longer. That's 2-3 years with no car payment, but it's also 2-3 more years minimum I have to drive a vehicle I'm not completely happy with. Seeing that my total daily commute is about 3 miles, it's a tough question.

So - what do you do? Be frugal, keep the Element? Or continue to pay a monthly car payment, but put that hard-earned money to a car you would enjoy much more?

Answer 1

I had a 2003 Element that I thoroughly enjoyed, but sold it a few months ago when I got the new car bug.  My rationale was to replace the Element while it still had some resale value rather than keep it for a couple more years and get far less for it becaue of age and higher mileage.  

As much as I liked the Element, I'm far happier with its replacement and have no regrets.  Go for what you really want.

Answer 2

I am in a fairly similar situation. I have a Honda sedan that is very reliable and will easily go on fine with routine maintenance for another 5 years. Driving that car however, is no fun. I have been very tempted to get a new car with all the finance deals now being offered. I am holding off for a few more years though. Car buying can be a very impulsive activity but you might want to think of the bigger picture. G35 has a V6 engine and its fuel economy is not that great. All major car companies are coming out with more fuel efficient models over the next two or three years. For the price of a used G35, you might be able to get a new Honda Fit Sport that will hold its resale value as more people shift from fuel guzzlers to more efficient cars. You obviously are someone who thinks rationally (getting rid of RX300, considering a used G35). With today's gas prices, you should seriously reconsider before buying a car that gets less than 30 mpg.