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Financing Question - HELP


Julien Gauthier

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PLEASE DELETE POST. I MOVED IT TO THE RIGHT SECTION (BUYING, LEASING and ORDERING)

 

 

Hi guys,

 

Big dilemma right now. Here's my situation:

 

  • Currently have a 2013 Edge Limited AWD 3.5L V6
  • Bought used at a dealer this year, with a solid carry over from my last vehicule.
  • Edge has 68 000 km (yep, I'm canadian !)
  • Currently on a 6 years financing at a ridiculous bank rate of 6.5%
  • Payment is 276$/2weeks

Talked to my dealer. He has a demo 2015 that he needs to sell:

 

  • 2015 SEL AWD 3.5L V6 with all the options I want.
  • Only has 3 000km
  • Would finance me over 7 years (I know it's long, but eh), at a much better rate of 2.99%
  • Would take my current car with all the balance
  • Payment would be 290$/2 weeks

MY QUESTION

 

Now what's better ?

 

276$/2 weeks, on a 6 year term at 6.5% (used 2013 with no warranty)

OR

290$/2 weeks, on a 7 year term at 2.99% (new 2015 with warranty)

 

Somebody good in maths could help me on this one !? I work on the road and expect to do around 25 000km/year.

 

What should I do ? Do I make the move ? I've only had my 2013 for 6 months now !

Edited by Julien Gauthier
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2013

Tl of all payments:$276x2x12x6= $39,744

Tl of Interest: $276x0.065x2x12= $2,583

 

2015

Tl of all payments:$290x2x12x7= $48,720

Tl of Interest:$290x0.0299x2x12x7= $1,457

 

Anyway, as you do a lot of driving, if it were me, I would go for the 2015, with its newer technology and warranty. (Assuming you can afford the extra cost of the payments).

 

Here in Indiana, we would also have to consider the additional cost of 7% sales tax and excise tax imposed on the license plate. Don't know what additional taxes you have to consider up north, but would need to take these into consideration as well.

Edited by enigma-2
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2013

Tl of all payments:$276x2x12x6= $39,744

Tl of Interest: $276x0.065x2x12= $2,583

 

2015

Tl of all payments:$290x2x12x7= $48,720

Tl of Interest:$290x0.0299x2x12x7= $1,457

 

Anyway, as you do a lot of driving, if it were me, I would go for the 2015, with its newer technology and warranty. (Assuming you can afford the extra cost of the payments).

 

Here in Indiana, we would also have to consider the additional cost of 7% sales tax and excise tax imposed on the license plate. Don't know what additional taxes you have to consider up north, but would need to take these into consideration as well.

In Canada we would only pay a 5% tax on the difference between the used car and the new car price. There is a provincial sales tax as well depending on where you live, again on the difference. I agree with enigma's math, its spot on. 25,000km per year is really not much over the average, however if you keep the edge to the end of the finance term on either one, both vehicles will have enough mileage on them to make the resale value poor. The difference in payments is $30 a month plus one more year. If ou can afford that I would go with the 15 because of factory warranty and it has the options you want. Let us know what you decide.

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