Keep almost paid off SUV or get certified used van? (pay, vehicle)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We have a 2006 escalade esv with 114k miles. We owe roughly $5k. I feel like it always needs something fixed and we spent about $3k in 2012 to make it run the way it is supposed to (brakes,tires, new rear end gears, belts and h20pump). It is also a gas hog averaging about 12 mpg.
My question is: is it worth it to keep the escalade or sell it and buy a newer certified van with under 30k miles ? Things I am struggling with are, do the reduction in gas fill ups and maintenance justify a small payment?
It costs roughly $100 per fill which last about 10 days. We are considering a Toyota sienna.
You're spending about $3600/year on gas. Not sure how much better a van would run on gas. Maybe save $1000/ year on gas, but spend a lot more than that to acquire the new vehicle. Buying a new (to you) vehicle will put you that much further in debt.
It is the last revolving debt balance we have. Come to think of it, once we pay off the cadillac it will cost more per month to own a new sienna and I would have a loan for 3 years.
Owing on an 8 year old vehicle that only gets 12 MPG does not sound very smart to me. The thing to do is see if you can trade it straight up on a newer Chevy Aveo or Ford Focus if you can find a dealer that will pay off the $5000.
I hate spending $100-$150 every other week for gas, believe me I know its dumb. But you do pay a little more for luxury.
We have plenty of equity in the vehicle. That's not an issue. If we traded it in we would have about $10k to spend. But unfortunately that doesn't go very far these days for a quality used car without a ton of miles. If we got rid of the escalade it would only be for a newer sienna(2012 or newer). I wouldn't be willing to trade it for an older van that will need work within the first year or two.
This is also the main family rig so it must seat at least 6, but prefer 8. Small cars are not an option
If you look at a vehicle as an investment, a luxury vehicle would be a stock you would never buy.
Getting a used mini-van could be a good move if you get one that gets very good gas mileage, (my caravan gets 28), with gas between $3.75 and $5.00+/gallon depending on where you live. Going with something 3 or 4 years old means someone else took the depreciation hit. I am assuming you need room for 6 because you have 4 kids, consider setting up a tax deferred 529 plan if you can swing it.
TOS rules will not allow the whole article copied, but will include a link.
Quote:
The Joneses Are Broke
Many of the people driving around the suburbs in their giant SUVs while talking on their new cell phones are deeply in debt. If you ask them how they are doing, they will tell you that they are just barely getting by.
If you look at a vehicle as an investment, a luxury vehicle would be a stock you would never buy.
Getting a used mini-van could be a good move if you get one that gets very good gas mileage, (my caravan gets 28), with gas between $3.75 and $5.00+/gallon depending on where you live. Going with something 3 or 4 years old means someone else took the depreciation hit. I am assuming you need room for 6 because you have 4 kids, consider setting up a tax deferred 529 plan if you can swing it.
TOS rules will not allow the whole article copied, but will include a link.
I agree with everything above. We only bought the escalade because the 1997 expedition with 181,000 miles we drove forever hit the wall. We have 4 kids and we wanted a suburban but we found this escalade esv for the same price. (private party). We could care less as long as it has leather so we can wioe it down easier. I NEVER buy cars new because of the depreciation statement you made. I would be looking at a 2-3 year old sienna.
the dilemma is buy something that gets twice the gas mileage( sienna is 21/24) and little to no risk of a major repair but have a payment or just pay off the escalade and continue to be nickel and dimed while paying $4.00/gallon for premium gas. I literally just filled up for $100 today and I have never seen this thing average more than 13 mpg, even on the freeway.
I love the idea of paying off the escalade and not having a payment but in theory you will always have operational costs with a high mileage vehicle vs payment with a newer used car.
It's hard to really say without hard numbers on everything. Such as, how much would you save a month on gas. How much will the cost of the Sienna be out of pocket. How long will the gas savings equal paying for the newer vehicle. Etc.
That said, if you kept the Caddy, how much longer would you own it anyway? It's not new or low mile, so a replacement will be in your future eventually no matter what.
I generally never recommend someone get a different car purely based on fuel mileage. The savings is rarely enough to be worth it financially due the cost to change. However, since you may be nearing a replacement anyway it makes sense to consider.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
