So I decided to check my 2021 Telluride w/ 30k miles Value and it came out to 34K to sell it to Carvana. I only owe 14K. I had put 10K down at a 1.99 APR. So I added a lot of equity on the car. Seems like Im still getting the overpriced values of used cars which I expect will leave us soon with all of these rate hikes. My questions are:
Does it make sense to sell it now?
If sold, I found that if I put the 20k down on a Telluride today I would end up at a similar payment as I have now but would be resetting my miles and tire wear to Zero. I also found a dealer that would do under MSRP on one that I want. Does this option make sense at the new 5.99 APR?
Find a 24 mo lease that will be 100-200 (100$ loss of 2400, 200 loss of 4800 plus drive off) more a month than I pay now (need a 7 seater) and hope car prices come down? I would then put my remaining money from the sale in a CD and use it for a down payment on a car later?
I’m leaning towards buying a new telluride as I normally lease my cars as I like having a new car and I can keep my payment the same. Rolling the old down payment plus new equity into a 0 mile car.
Not possible to vote without knowing the discount on the new one. Although I’m guilty of doing the same thing resetting the treadmill is usually not a good idea.
You paid sales tax when you bought the ‘21, if you sell and buy a new one you’re paying taxes and tags again (if you lease just the payment is taxed). When you last renewed the registration would weigh heavy in my personal calculus. With the information you presented, I’ve already cast my vote to keep it.
@jeisensc makes a good point. At least if you were selling a leased vehicle you would have only paid sales tax on your payments. Again all depends on how good of a deal you have in hand on a new one.
Firstly, I think you should not be considering the amount of equity you have nor the fact that if you roll it all you can get below your current the payment. It took a lot of money down and lots of paulenrs to get to $20k equity.
The best way to look at this is the full value comparison:
$34k in for the 2021
$42.5k+tax/fees for the new one. Call it $47k?
So ultimately is the 2023 with no miles worth an extra $14k?
If yes, go for it.
You may also want to consider the interest rate as it’s probably likely the rate you’ll get on the 2023 is higher than that of the 2021?
I like your analysis of this. I guess knowing what the 30k-0 miles means dollar wise might help. The current car is at 2 vs 5.9 APR but a larger down payment now.
Overall, I wanted to make sure I wasnt totally off base by wanting to roll the equity into a new car. It seems like the community is as mixed as I am.
Obviously, on lease hacker we already throw some money away by leasing. My payment financing, at the time, was better than leasing and now I have 20k to renew my buy(lease) at around the 3 year mark. New tires, less down time in case of repair, some upgrades (new display, updated looks etc)and the new car smell!? As mentioned above YOLO??
