Never a new car right? Well I/m considering. But like every other schmo, I have my reasons but value your opinions. So please, hear me out at least before I get crucified.
Background: Wife and I are 40 year old. Daughter is on her own and out of the house. No other kids. Cant have any others. No debt. Will have 6 month emergency fund in place by July 2017. We have balanced budget and well within a 50/20/30 model. Currently live rent free because of my wife's work. Commuting between jobs and school (my career is a little stickier and I just cant switch locations) adds up to 4000+ miles a month. Fuel budget monthly is around $500-$600 depending on other extra driving. This will last for about another year before location changes will occur. Most of the commute is in a 2012 Ford Fusion that we paid cash for used. No major mechanical issues, although it was a rental car lease before we got it. And I have been diligent with routine oil changes and such. Our other vehicle is a 2003 Toyota 4-Runner 4wd that we bought new and have had no payment on it in years. I live in snowy Montana and 4wd is a necessity at times, not an option. Plus I need to for towing a small trailer from time to time. I plan on continuing owning that SUV till it dies but it has never had anything wrong with it in 13 years and has 183,000 miles.
I am pondering buying a new Toyota Prius. Cost out the door would be about $26,000. After cash down and cash from selling the Ford Fusion, the loan would be about $18,000 and I would chose probably a 48 month loan making payments to be $382/month. Dealer incentives include 0.9% APR. MPG would increase from 30 to 50. Reducing my estimated fuel budget from $600-$700 a month to about $300-$400.
-Estimated $300 month fuel savings. Not including probable cost increases in insurance and registration
-I will have no need to get a larger car in the future as my family will not grow.
-I plan on keeping the vehicle for 13+years or until it dies
-I have peace knowing I will have a full manufacturer warranty and I will know without a doubt that it had no previous issues and has had routine maintenance performed. This one is huge for me.
-Also, I would get $4500 income tax credit come April
Am I having any logic in my debate or am I being a fool? Thank You all for your time and feedback. God Bless.