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Downsizing car - does this make sense?

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    Downsizing car - does this make sense?

    I have a far way to go to get monthly expenses in check. One suggestion was to downgrade one or both cars. I'm looking for advice on this and to see if this really makes sense:

    I owe $8,800 on my 2007 small sedan. I just purchased it used last year for $11,500. I do 62 miles per day commute. The car had around 30k miles when I purchased, now has 42k. I think I could still sell it for around $11k.

    I've been looking at small SUV's like Ford Escape. These would help me out with taking the dog out, and with kids sports stuff. But, I've always enjoyed small sedans for driving to work (jetta, honda, mazda).

    So, a $5,000 Escape will come with close to 100k miles on it. Maybe I can find one with 88k. So if I make $2k on my sale, I'd have $3k owed on a 2003 Escape with high mileage. And I have to do 62 miles per day so it will add up.

    Do you think this makes sense to do? Trade a 2007 w/ 42k miles for a 2003 w/ ~90k? Or would you keep the low mileage sedan and find ways to pay it off quicker?

    #2
    I would stick with the low mileage sedan for your commuter car. Pay it off as quick as you can and then drive it for as long as she'll last. The Escape will likely get worse gas mileage, and after all is said and done, I doubt you'll be saving all that much on your monthly expenses for an older car with twice the mileage.
    Rock climber, ultrarunner, and credit expert at Creditnet.com

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      #3
      What is it that you are trying to accomplish? Do you have other debts? Or are you just looking at the escape as a want and not a need?

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        #4
        I think it makes sense to downsize to a vehicle in the $5k range.

        I don't think it makes sense to pay $5k for a vehicle with 100k miles on it already.

        There are plenty of sedans that fit the low mile/$5k category.

        I guess my answer is that moving up to a bigger vehicle does not sound like a very sound cost saving strategy - no. Kind of misses the point.

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          #5
          Any vehicle over 100K miles has the potential of needing high cost repairs. Plus SUV's stink in gas mileage. I'd keep the sedan

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            #6
            I think you are way overestimating what you'd get for your car if you sold it.

            If the thing is reliable and dependable, then I think you should keep it. The difference isn't that much, with the downside potential of big repair bills.

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              #7
              I agree, keep the sedan. Do you have another car? what other debt do you have, you might be able to save money there.

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                #8
                Just a note to all, a car that is paid for and is in great shape is much more fun to drive. Worries go right out the door. Pay that sedan off and drive it. You'll save in the long run.

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