Trade in and use equity for newer car or keep and continue to fix old car?

Submitted by SuddenlyCareless t3_yfqfnc in personalfinance

Scenario 1: Keep current car, payment of $353/month with $5200 left owed. Car has had to have about $3000 worth of work and still not running right (shifting issues mainly, so worried transmission will go soon)

Scenario 2: Trade in car, dealership offered $14300, use equity towards new/newer car with warranties. Looking at cars $25000 or less. Payment would be less than $275/month.

Income: $112000 Current DTI: 22% FICO: 833/827

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93195 t1_iu4o3of wrote

Dealership is offering $14K for a car that isn’t even running right and may need a new transmission?

Ditch it fast before they change their mind and get something more reliable.

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lookitsblackman t1_iu4oimm wrote

What are you currently driving? It makes a difference in this case.

Take your car to 2-3 different mechanics and try to ID the problem. Based on the information you receive, I think you can make a more educated decision.

Newer car does not mean less issues. I bought a two year old car once upon a time and the transmission went at 40k miles...

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theoriginalharbinger t1_iu4so24 wrote

Can never tell why people don't list what the car in question is. Make/model/year/mileage. It could be a notoriously bad vehicle, or it could be something that was a Friday build on the assembly line.

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