I own a Dodge Caravan 2003. Bought it new and now it's about 55K miles. I still owe 2 more years on it. I have always been a Honda girl, but because of the size and features and price, I bought a Caravan at that time. I am ready to move on and I want the new CRV. The payment will be about $75 more a month than what I pay now, but I will be saving more in gas and definitely the resell value will be tons better. My question is, we are financially unstable at the moment, living paycheck to paycheck, with some months that are better than others, since husband works on commission only. Should I make the leap and buy a new car, although it would mean paying more for it, or should I keep my Caravan and pray that besides the monthly payments I still have to make on it for the next 2 years, I won't have to pay much more for repairs since it's extended warranty is over at 70K? Right now I am getting about 19 miles per gallon on the caravan but I know I could be getting about 23-25 on the CRV.
2007-06-12 14:30:59 · 8 answers · asked by lasm97 3 in Cars & Transportation ➔ Buying & Selling
What would you consider a while longer? Another year? 6 months? Until the warranty expires? Right now I am driving about 16K miles a year, so that warranty will expire before I am done with payments. It is not giving me problems now, but I have already replaced the power steering pump (under extended warranty) and the transmission gave me problems at 18 months, another repair under warranty). I do need to replace the tires, and since it's reaching 60K, the maintenance recommended would be around $500. Another thing to consider.
2007-06-12 14:46:33 · update #1
This question is so easy, keep the Caravan. If you're willing to be vain enough to buy yourself a new car before putting your family's needs ahead of you, you really need to reconsider some things.
2007-06-12 14:59:54 · answer #1 · answered by burberribunni 5 · 4⤊ 1⤋
This is a tough one!.
You should consider all the options on the table. Is the Caravan giving you any problems right now. And can you live with the same vehicle for just a little longer and pay on it for some time.
You are at the point that every payment that you make on the caravan is going towards the principal now. By now you should not owe that much on the loan and if you keep it for a little longer, the resale value on the caravan will catch up with the loan amount and you will be in better trade in situation.
Good Luck in your decision.
2007-06-12 21:40:00 · answer #2 · answered by alxever 2 · 1⤊ 0⤋
Best thing to do is crunch the numbers--pro and con--for buying new versus keeping the Caravan or possibly buying a used CRV which will lower payments and if you buy a 1 year old vehicle, you don't lose the first year's depreciation and still have two years of warranty or a two year old CRV---will be even cheaper and save even more on depreciation. Sounds like you can ill afford any increase in payments even though you may save some in fuel economy. How about insurance costs of old versus new or used? Does your extended warranty require a deductible payment? Figure your monthly miles of driving and how much per mile fuel costs versus higher mpg with CRV--be conservative with economy ratings. I usually tell people to budget 50-100.00 per month for maintenance items like tires, brakes, battery--things that warranty does not cover and one repair can run hundreds of dollars at once. Good luck with the math.
2007-06-12 21:48:47 · answer #3 · answered by paul h 7 · 2⤊ 0⤋
"we are financially unstable at the moment, living paycheck to paycheck, with some months that are better than others"
"won't have to pay much more for repairs since it's extended warranty is over at 70K"
"payment will be about $75 more a month"
that said, do you think its a good idea? Did you remember to check on what the insurance difference would be? What about the interest rate? You know that trade in will yield only about 1/2 the value of the Caravan?
I wouldn't do it...
2007-06-12 21:44:14 · answer #4 · answered by Jen 4 · 3⤊ 1⤋
You only have two years left and extended warranty...You know that you are financially unstable right now so why are you considering buying a new vehicle in which not only do you have $75 extra a month on a car payment but you also have to pay taxes and tags and what not right off the bat...you would be better off staying right where youare, 19 miles a gallon is not that terribly bad. Think here, common sense.
2007-06-12 21:42:04 · answer #5 · answered by not_as_sweet_as_i_look69 1 · 2⤊ 0⤋
Are you completely nuts? Do you actually believe you are going to save over $75 a month in gas by buying a new car? You are simply attempting to justify your case of new car fever. YOU ARE BROKE -- you said so yourself! You cannot take on a new car payment. Keep the Caravan well maintained and drive it a few more years (think about it-- ONE year without car payments will net you a ton of cash!) Then you will have a huge down payment plus the money you get with the sale of the Caravan to buy whatever you want.
Be smart -- even if it HURTS, darlin--
2007-06-12 22:58:03 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Keep the caravan, my father in law has a 97 one with more than 200k and still running.
If you admit that you don't have enough money to save, keep your minivan. You will pay in 2 years and can save in insurance and you will improve your credit.
There a lot of people who are always in debt because of the fancy cars. The Honda is expensive and with options it becomes really expensive.
2007-06-12 23:05:34 · answer #7 · answered by wazup1971 6 · 1⤊ 0⤋
Your comment that you are financially unstable right now is your clue to not get into more financial debt at this time. I would wait another year, and try to get things more stable, pay off some debt, then think about a new car purchase.
2007-06-13 01:18:26 · answer #8 · answered by fisherwoman 6 · 2⤊ 0⤋