Should we trade our BMW for a cheaper car or keep it and pay it off?
June 30th, 2010 | 
Author: We have a 2004 X3 with ~31K miles. We bought it used with an extended warranty to 100K miles. We owe about K and have another 4 years on the loan. (Pmt 0/month) We are about even on the car as far as trade in goes. We are debt free exept for the car, a student loan and the house and want to start aggressivly adding to a current savings of K for emergency purposes and eventually get to where our paychecks are just for living expenses only, all other things paid off. (My husband and I both have state retirement and other retirement accounts.)
We really would like to have a bigger SUV (plan to have another baby next year), but don’t want to extend paying on a car any longer than we have too.
Any advice would be GREAT!!
Thanks!
Posted in free debt advice | 
Tags: emergency purposes, exept, extended warranty, Living Expenses, paychecks, state retirement, student loan, warranty, x3
8 Responses to “Should we trade our BMW for a cheaper car or keep it and pay it off?”
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You may be able to find an SUV that is cheaper than what you’re paying right now. If you know this is what you want to do and you want to have another baby, then yes, you will need to get something like an SUV. However, gas is high and they do drink up gas like water. Be mindful of everything and you will come up with the right decision. Best of luck to you!
definatly trade. with gas prices a litlle extra money would come in handy
if you want to start a family next year, trade the bmw for a suv next year on a 2009 model. save as much as you can now. soon you will only have one pay check. if wife returns to work, you will have added payout for child care.
Are you sure you’re even for the trade in? Why don’t you take the car to the dealership and see what they would give you for the car? If they don’t give you enough to cover the payment of the car….you would then factor the rest of the amount you owe on the car and the price of the new car. Would that be worth it to you?
Sell the car! Cars are a luxery and it looks like you want other luxerys in your life…kids, extra cash for emergency, happiness. Don’t trade it in! People lose so much money when they do this. My bf’s dad works at a car dealership and they rip off people who do trade ins and sell the car on their lot for X amount more so they can make money. If you want to put more money in your own pocket to purchase the next car/suv sell it on your own through your local newspaper or craigslist.com. Once you sell the car, then go find your new one and don’t pick the first one you see. Wait for a good deal, that is what I did and was able to pay cash for my car. Having debt on a car is no good since they depreciate in value so fast. Another thing, don’t get an SUV unless you have more than 3 kids! Get a mini van or a larger car, suv’s are gas guzzlers and since you sound like you want to save, buying an suv is not going to help you.
Another tip….When you purchase the new car/suv, BUY USED! They are a much better deal and people usually don’t keep new cars that long anyway, you end up losing money in the long run again. Good luck
I would absolutely trade it in for something cheaper. Look at the Hyundai Santa Fe or Honda CRV something in that vein.
Also try to buy one that is a year or two old, that will eliminate the drive-off depriciation.
If you’re going to get the bigger vehicle then sell the car do not trade it. I doubt seriously that the car dealer would give you what you owe on the vehicle as trade in, they would instead roll over what you owe minus what they give you for trade in into the price of the new vehicle–you will then be looking at another large note on your new vehcile.
SUVs soak up a lot of gas, so you will have a huge gas bill in addition to the large car note.
It would be a good idea to get rid of the car but don’t trade it in. You will take a loss of several thousand off of what you could sell it for by yourself.
Then go get a car you can more easily afford. Or better yet actually buy one!