So some woman smashed into me last year and my car was a write off... long story short was I got 5k for my 2001 Civic. I used that 5k to purchase a Demo Vehicle at Honda for twenty grand out the door in December of 2011. (2011 Civic Sedan DX-G) I got 0.9 % APR for 5 years basically paying $357 per month. I have 4 years left to finance this vehicle and it is mine.
Here is the dilemma...
They are blowing out the 2012 Civic's for a good price and I really want a 2012 Civic Coupe EX (Loaded with moonroof, 16 inch wheels) Just a sportier car with more options and I really like the look of it. They sent me a letter a month ago offering me $1500 bonus for the value of my current car that I will trade in. Today I went in and crunched the numbers at the dealership. Breaks down like this...
They are giving me $10,000 + $1500 bonus for my trade in (So 11,500 total) I still owe 17k which means I have about $5500 negative equity in my car. Obviously they are low balling me for my trade in. The car has 24k Kilometers on the damn thing!
They would give me the new car and pay out my previous loan for a total of $196 bi -weekly payments (156 payments of $196 over 72 months at 1.99% APR) Works out to be $30,576 in total
Basically I would be starting fresh again for 72 months paying off my car. The payments are only $35 more per month but I realize over the term I will be paying $30,000 in total. If I just keep the current car I can pay $17,000 more for 4 more years and the car will be mine.
My dilemma is... Would be reasonable to just get this new car and be happy with my purchase? I will be keeping the car for a long time and the interest rate is so low it is basically won't be breaking my bank or anything. I will just be stuck with payments for an extra 2 years. It is a nicer car with more features and the coupe style I want
Or listen to my economical side and just keep the car I have and drive this thing to the ground like I did my last civic until it breaks down or someone smashes it for me lol
I have only shaken hands with the salesman and filled out the credit application for this new car so I am pretty sure I can still back out of this. (Well I hope so anyway)
If I do decide to get the new car, should I go to another dealership to see if they can beat that offer?