After running the numbers, I'm basically in agreement with Rage. I make a 6-figure income, so it wouldn't break us either way, but I look at the new car purchase as a mistake to be learned from and corrected. I'm pretty good mechanically and at picking out cars, so not too worried about lemons.
I'm going to talk through it with the Mrs. tonight and try to get us to the right consensus. Hopefully this isn't the wife reading this right now. If that is you, hi Pumpkin - I love you!
Here are my pitch points I'm using tonight on why selling is the right choice, in no particular order (Peg is the name of the Prius...yes, dorky I know).
1. Peg already isn’t new anyway - we’re already driving a used car. In 15 years, we’d be driving around a 16-year-old car, running it into the ground and knowing that we were short-sighted and pissed away a bunch of money on it in the past.
2. We drive far too little for the mileage difference to be worth it.
3. It’s currently a $23,000 time bomb (we’re out that much if we get into a wreck)
4. Upon further research, 1.9% interest isn’t awesome for a car loan these days.
5. Much cheaper insurance - new cars are more expensive to insure and we can get rid of collision insurance.
6. ~$7,000 cash now! What should we do with it? $3000 toward mortgage, $3000 in savings, $1,000 into a travel fund so we don't need to stash it from our budget? Just my starting idea.
7. More than $25,000 in 10 years from saving the payment value (that's over 6 months of work-free days). Peg ain’t that great.
8. The excitement of getting a “new” car. We can get a used Subaru with 4 wheel drive that kicks ass in the Winter and is extremely safe, still excellent mileage, more space, better stereo than the stupid Toyota Entune, etc.. Variety is the spice of life - I’m actually excited for the prospect of getting the new experience of a different car. I see no reason that we need to be so attached to Peg.
Wish me luck!