Overhaulin'

Should I keep my car or buy/lease a new one?

Hi...I need some advice from experienced car owners or leasers. I have a 2002 Oldsmobile Alero w/ 80K miles on it. I have just begun the 4th year of 5 year finance plan, and I will own it in a year. It was my first car with no credit history and I am paying 18% interest ($300/mo). It has a few minor problems, mostly cosmetic and annoying - loudish interior, a couple of dings, dashboard peeling, bugs get in (gross!). No engine problems that I know of. I am 28 years old, female, no kids, and I work at home presently. I will probably go to school in the fall, which isn't far...so mileage isn't a problem. I am thinking about getting another car, but I'm indecisive about everything...and I was hoping someone with similar experiences could offer advice. 1. Should I pay this car off and risk not getting anything for the trade in? 2. Should I trade it in now? 3. Should I lease or buy? 4. Which kind of car would suit me? I like something sporty but economical... Thanks!

Public Comments

1. 18% sounds high. if u can afford it get a new japanese car.
2. shop around....NEVER lease no matter what they say.....money loser....spend some time on net looking at prices of your old olds and new one...Dollar for dollar honda is best...acura are nice if u have the dollar....love the maxima
3. I agree buy a Japanesse Car, american cars suck and end up with these problems in under 4 years. Cut your loses and trade it in now.
4. I would pay yours off first and hang onto it incase you do get another one and it breaks down. You're so close to owning it and if it's running fine then I wouldn't jump into another payment. If you do get another car, I wouldn't recommend buying a brand spankin' new car from a dealer because it literally loses value as you drive it off the lot because then it's "used". There are plenty of used cars in excellent condition that would save you money.
5. I would trade now and not risk not getting anything for your trade. It always helps to have some money to help with another car. There are pros and cons to each. But I would buy. A good economical sporty car is a Cobalt. It gets good gas mileage and I think their good cars. They don't cost an arm and a leg either. I wouldn't get anything Hyundai there bad cars.
6. My advice is to keep the car and keep paying on it until about 95k miles. If you turn 100k, there's a psychological barrier here and the price will drop. This will allow you time to work on a down payment for your next car. Also, the longer you've paid on-time for the current vehicle the better the credit score. Try to get your score to at least 680 before your next car to get a good loan package. I would buy a 2-3 year old Japanese vehicle, still in warranty, with under 30k miles. This way you should be able to get a nicer, longer lasting car for roughly the same monthly payment. If you can payoff the car it should be worth at least $3k as a trade and if you save $2k, you'll have a $5k downpayment. This will allow you to buy about an $18k car and keep the payment the same. Good Luck!!
7. The 18% interest rate is rediculous. I probally would have said to you two years ago to trade in the car a get a new one with a lower interest bairing that two years ago you were paying your car note on time and your credit score two years in on a five year loan would have gotten better.However where your at now I'd would probally recommend keeping this car, a 2002 with only 80k miles is great you could figure in the next year until you pay it off it will have around 95k miles or so and then if you took the 300 dollars you had been paying towards the car monthly after that into a bank account you would have the opportunity to save a lot of money for a worse case possible situtation either in life or if something went wrong with the car or until you have enough cash to buy a new car out right interest and being in debt stink espicially a car debt. I do understand however that you've had this car for going on five years and your probally ready for a change. But being debt free in one more caterogy in life is definitely a plus though. If you do decided to get a new car try getting a newer car with about 15k miles thats already depreciated so you don't have to deal with another 300 car note. Make sure to stay away from Buy Here Pay Here Lots or you'll being dealing with 18% interest all over again. Make sure to look at the mpg as well. Hope this Info helps. Don't lease there are mile limitations and its really almost like renting a car from hertz. Large amount of money needed on front and back ends of deal to finally own a lease. Altoghter Pointless.
8. At the interest rate you have been paying, you would be loosing money to trade in the car. I would recommend keeping it and paying it off - and possibly calling your bank to get the car refinanced, even if you do only have a year left. That is an extremely high finance charge. But yeah, I think that you would screw yourself if you trade the car in. The only cars that are worth anything past 80k - monetarily - are hondas, acuras, toyotas, and luxury cars.... You would probably get like 2k - 3k for your trade, which is nothing and barely dents the payments on a car. Besides, if you take a good negotiator with you to a LEGIT dealership, you can make the dealer come off of 3k easy.. You are probably as close as the car gets to having one owner, so you know its history and should know what it needs. Going to school is expensive, even if it is not far. You should know by now that having to make a car payment can be added stress. Not having a carpayment, can mean additional funds in your pocket. That car is practically yours, be smart in making your decision... These are your benefits if you keep the car... 1.After you pay it off, you have one less bill 2.You can use the car to get through your school years - you can probably tell that I don't recommend buying a new car right now...but, 3. It can always serve as a back-up car, should you decide to get another one (meaning that if something happens to your new car, you won't be put out.)