My 2003 Rav4 is paid off and has 42,600 miles on it. I've been researching and looking at the new 2007 Rav4 - which is bigger, more powerful, and looks a lot better.
My 2003 Rav4's warranty is until 7 years/70,000 miles.
Should I go ahead and upgrade now or should I want until my car is 7 years old and it's warranty is up?
(btw - one dealership offered me $15,000 for my trade in and the new Rav4's are going for about $30,000 fully loaded)
2007-05-27 07:45:08 · 1 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
I don't see any good reason to get rid of your 2003. You've already gone through the steepest part of its depreciation cycle, and with the extended warranty you don't have to worry about repairs for a while. This means your cost-per-mile will be excellent at this point.
If you trade it in now for a new car, your cost-per-mile will shoot up again since you'll now have a $15k loan (trade-in vs. fully loaded new car), paying interest on it, and suffering the depreciation of a brand new car.
From a strictly financial standpoint, hang onto your current car. But if you really want an '07 that bad and are willing to pay for it, that's your prerogative.
2007-05-27 08:11:30 · answer #1 · answered by nevergonnaletyoudown 4 · 1⤊ 0⤋