Author Topic: Trade-In Worth it?  (Read 3091 times)

Philociraptor

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Trade-In Worth it?
« on: June 30, 2014, 02:15:33 PM »
Good afternoon y'all! I'm contemplating trading in my daily-driver for a more fuel efficient one. Here's what I'm looking at:

Current car: 2012 Ford Mustang (20-22 combined MPG)
Trade-in value: $15k
Loan amount: $12.5k at 1.9%, 25 payments of $508 left, w/ warranty coverage through end of loan
Milage: 30k, adding 10k per year

Car I'm looking at: 2010 Toyota Prius (48-51 combined MPG)
Price at local dealer: $16k
Milage: 60k
Insurance savings: $12/month

The gas savings alone (at $3.50/gal) come out to almost $1k per year.  I'm going for a test drive tomorrow during lunchtime.

What do y'all think about making this trade? Is this a smart move? Are there any pitfalls that I'm missing?
« Last Edit: June 30, 2014, 03:04:54 PM by Philociraptor »

shotgunwilly

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Re: Trade-In Worth it?
« Reply #1 on: June 30, 2014, 02:58:22 PM »
Not sure what you're looking for here. You've done the math and know the numbers. Now it's just emotional, and up to you.  I'd be willing to bet you could get an even trade for the two.  You just need to know the terms of the new loan now.

Glenstache

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Re: Trade-In Worth it?
« Reply #2 on: June 30, 2014, 03:14:35 PM »
Just call it the mustache-mobile and move on. Looks like the numbers work out favorably. The Prius will definitely have a different chachet than the 'stang.

Philociraptor

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Re: Trade-In Worth it?
« Reply #3 on: June 30, 2014, 03:39:06 PM »
Not sure what you're looking for here. You've done the math and know the numbers. Now it's just emotional, and up to you.  I'd be willing to bet you could get an even trade for the two.  You just need to know the terms of the new loan now.
It is definitely an emotional decision, the Mustang was my dream car growing up. I need to decide if the monetary difference is enough for me.

daverobev

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Re: Trade-In Worth it?
« Reply #4 on: June 30, 2014, 05:33:44 PM »
Hmm, is it a manual or auto, V6 or V8?

If manual/V6 I'd say you can get your mpg up a fair bit from that. If you can get closer to 30..

No just keep it. If you like it. $1k... naw.

Can you drive less..?

Philociraptor

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Re: Trade-In Worth it?
« Reply #5 on: June 30, 2014, 08:53:24 PM »
Auto, V6, but I can get a tuner for it that supposedly increases city mpg 3-5.  If I learn to ride a bike I could possibly bike to work during the short spring/fall time.
« Last Edit: July 01, 2014, 07:36:24 AM by Philociraptor »

wtjbatman

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Re: Trade-In Worth it?
« Reply #6 on: June 30, 2014, 09:41:36 PM »
Driver of 2004 Mustang Convertible here. Love the car, love the convertible, don't love the 20mpg I get. Wish I could sell it and get something with twice the mpg but the title is in limbo thanks to co-owning it with stepdad and having trouble getting on the same page to go get a new title that shows there is no lien on it anymore. But I digress.

FWIW, my advice is to trade it in now. Mustangs are sweet, cutting your fuel bill in half will be even sweeter.

Milspecstache

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Re: Trade-In Worth it?
« Reply #7 on: July 01, 2014, 09:46:36 AM »
Also, your proposed trade-in will save you a lot of maintenance later.  Think of the differences in reliability, tires, oil changes, etc.

darkadams00

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Re: Trade-In Worth it?
« Reply #8 on: July 01, 2014, 10:07:22 AM »
To help me prioritize finances vs emotions in purchase decisions, I ask myself "What EXACTLY would I do with the rest of the money if I choose Option B?" If I'm more excited about Option B's outcome (think of it as an alternative purchase, even it's just the "purchase" of a bigger number on your spreadsheet), then I go that route. Otherwise, I choose the original Option A. Saving $Xk yields very little positive emotion in the abstract, but a quantifiable outcome gives the savings a meaningful purpose.

Thus, I get the privilege of including emotions and finances as much as I like without any negative baggage or future facepunching.