Hi All,
We have a second kid on the way which has forced some changes in our auto needs. We are very active (climbing, skiing, camping, etc) and have a family place in the mountains. We need a 4 wheel drive vehicle that is also large enough for a family of 4 (with car seats), a dog and luggage/gear.
We currently own a 2010 Jeep Patriot outright. We also have a 2016 Chevy Colorado that I bought for a combo of work and the needs described above. It's financed at 0% with a balance a little less than what it's worth, roughly 8k less than what I bought it for 2 years ago. I know... depreciating assets. Problem is- the midsize truck is not big enough for the family needs described above and I no longer need it for work to the same degree I once did.
We are debating replacing one of our vehicles with a 4WD midsize SUV at some point. We may not need to do this right away because we likely won't be travelling/adventuring much with a newborn. Our assumption was that we'd replace the expensive car (that we have a payment on) and continue driving the other into the ground.
My question: Does it make more sense to sell the truck now and make the change while it's still relatively valuable or wait another year as it continues to depreciate but as I also continue to pay down the 0% auto loan? Does anyone have a sense for how quickly something like this will depreciate? I pay about $500/month toward the principal. I doubt highly that it depreciates anywhere near that quickly. And note- I completely recognize how dumb it was to buy a new car, the pitfall of depreciating assets, etc. I am already kicking myself for that call and for having not foreseen the second kid....
Any input would be appreciated!