Should I get rid of my nice car?

W

Wayfarer

New member
I bought a pretty nice car a few days before Christmas. 1 week later I found out that my GF was pregnant. before buying this car I had a Nissan Sentra that was fairly inexpensive and saved me a lot of gas. With the new baby on the way Im wondeing if it would be more feasable to trade in my new car while it still has low miles on it and buy another budget car. I talked to my Father about it and he said I would lose more money downgrading to another car and to just keep the nice car, being that the new the engine will last me a while. The difference in monthly payments isn't huge the only big difference is in insurance and gas. Should I keep my nice car or get a hoopty?
 
Your father is right.

When you trade, you only get wholesale for your old car while paying retail for your new one. Add taxes, fees & registration and your "equity" if any, is going to decrease by $2500+.

And if you don't have equity, you may not even qualify.

So unless you are talking about going from a $18,000 car to a $2000 car, its probably not going to be worth it to you.
 
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