Some people get in a situation with financing and it becomes a cycle. Reliable transportation is a NEED, and for many, financing a new vehicle with a warranty makes the most sense. However, those people need to learn that vehicles these days can go much longer if properly cared for. They need to keep them until they are paid for AND, for those who get thousands in tax refunds, they need to pay the loan down.
My Grand Caravan has 180k miles and is paid for. Because we travel , i felt we needed something more reliable. i could only afford one payment, so I sold my 2006 Colorado and was able to pay it off and avoid negative equity from trading. We found a great deal on a 2009 Town and Country. Because we purchased it for $3k below book, we got a good interest rate. I could have purchased another Grand Caravan that was older,but in great shape, for less money. Because it was older and we would have been financing right at book value, the interest was twice as much and the payment would have been higher. We purchased the T&C for a family vehicle and the GC has become my truck. I will continue to drive it till its all used up.
My Grand Caravan has 180k miles and is paid for. Because we travel , i felt we needed something more reliable. i could only afford one payment, so I sold my 2006 Colorado and was able to pay it off and avoid negative equity from trading. We found a great deal on a 2009 Town and Country. Because we purchased it for $3k below book, we got a good interest rate. I could have purchased another Grand Caravan that was older,but in great shape, for less money. Because it was older and we would have been financing right at book value, the interest was twice as much and the payment would have been higher. We purchased the T&C for a family vehicle and the GC has become my truck. I will continue to drive it till its all used up.
