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Old 06-07-2005, 09:10 PM
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blackmercedes blackmercedes is offline
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Join Date: Dec 2000
Location: St. Albert, Alberta, Canada
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Quote:
Originally Posted by Ocean View
Currently the car is valued from $6,000 - $9,000. Which means, I can save $10K-$15K if I just sell now and get a new $30,000 vehicle.
Well, I'm not sure where all those savings are going to come from. Your new $30,000 car will be worth $15,000 in 2-3 years, meaning you're SPENDING $15K on depreciation.

Your E320 won't lose much more value over the next three years and I seriously doubt you'll spend half of the $15,000 depreciation cost of the new car. Think about how much work $6000 gets you. You'll need a seriously major repair or two to get there.

Also, don't forget that even new cars need service, so it's not "free" driving either. The newer car might have a higher insurance bill, too. If you don't have $30K in the bank, you'll pay interest charges on the amount you have to borrow, and if you do have the $30K, you face the opportunity cost of investing your moolah.

Keeping your E320 will be cheaper, no way around it. But, it's nice to have a new car, and if you don't mind paying for it, go for it.
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