Julien Gauthier Posted November 27, 2015 Report Share Posted November 27, 2015 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 ! Quote Link to comment Share on other sites More sharing options...
Vadimus Posted November 27, 2015 Report Share Posted November 27, 2015 2015 Is a big improvement. Go with 2015, Quote Link to comment Share on other sites More sharing options...
knickerbocker Posted November 27, 2015 Report Share Posted November 27, 2015 Here is your maths: 2013 Edge Limited: If paid over the 6 years @276$/2weeks = $43,056 2015 Edge SEL: Paid over 7 years @290$/2 weeks = $52,780 You'd be paying almost $10k more over an extra 1.5 years (assuming you have 5.5 years left on the 2013). If this is a purely economical decision, obviously you should stick with the 2013. Quote Link to comment Share on other sites More sharing options...
Julien Gauthier Posted November 27, 2015 Author Report Share Posted November 27, 2015 Thanks KnickerBock. But obviously, I'd pay more interests with my 2013 at 6.5% than 2.99% on the 2015.. 52 780$ has more ''capital money'' than the 43 056$ right ? In proportion... Quote Link to comment Share on other sites More sharing options...
Vadimus Posted November 27, 2015 Report Share Posted November 27, 2015 (edited) Never consider the car an investment. There would be almost no "capital money" on 7 year old vehicle with almost 200K kms... Edited November 27, 2015 by Vadimus 1 Quote Link to comment Share on other sites More sharing options...
knickerbocker Posted November 27, 2015 Report Share Posted November 27, 2015 Yes, you'd pay $7,481.68 interest for the 2013 or $5,210.67 for the 2015 over the entire term. While you're 'saving' on interest, you're going to be 'paying' more in depreciation for the 2015. If you can afford the $290 payment, you could increase your payment on the 2013 and have it paid off 4 months early and save $433.62 in Interest. Quote Link to comment Share on other sites More sharing options...
akirby Posted November 27, 2015 Report Share Posted November 27, 2015 If you're just trying to justify the 2015 based strictly on $$ you can't. If you want the 2015 and you can afford the higher payment then go for it. Whether the $10k is interest or principal isn't really relevant - it's still money out of pocket. Quote Link to comment Share on other sites More sharing options...
akirby Posted November 27, 2015 Report Share Posted November 27, 2015 Here is a better way to look at it. Would you rather have the 2015 or the 2013 with $10K sitting in the front seat? 1 Quote Link to comment Share on other sites More sharing options...
Julien Gauthier Posted November 27, 2015 Author Report Share Posted November 27, 2015 Thanks guys ! Your answers are helping ! Still no decision made here... I knew it would be more, but not that much... Have to take in consideration that my 2013 has no warranty left. 2015 would be full covered for 3 years.. Would the repairs and possible mechanic problems justify the difference, I don't think so... Any other advices here ? Quote Link to comment Share on other sites More sharing options...
akirby Posted November 27, 2015 Report Share Posted November 27, 2015 The warranty and less interest paid are good things but still not enough to offset a $10K bump. If you can afford it and you want the newer one get it. If you're waiting for financial justification you're not going to find it. Quote Link to comment Share on other sites More sharing options...
my 2012 edge Posted November 27, 2015 Report Share Posted November 27, 2015 Why not try to refinance your existing car loan to a lower interest rate Quote Link to comment Share on other sites More sharing options...
Julien Gauthier Posted November 27, 2015 Author Report Share Posted November 27, 2015 Haha Thanks Akirby ! I wanted it to make sense, but it doesnt. I'll stick with my 2013 ! Thanks for all your answers guys ! Quote Link to comment Share on other sites More sharing options...
27Sport Posted December 10, 2015 Report Share Posted December 10, 2015 (edited) In Canada do they split the payments up into 2 week increments? Edited December 10, 2015 by 27Sport Quote Link to comment Share on other sites More sharing options...
knickerbocker Posted December 10, 2015 Report Share Posted December 10, 2015 In Canada do they split the payments up into 2 week increments? My dealer's business manager has assured me we can do bi-weekly payments. You can also choose the day of the week it comes out of your bank account for auto payments. Quote Link to comment Share on other sites More sharing options...
Julien Gauthier Posted December 10, 2015 Author Report Share Posted December 10, 2015 Yep. Two weeks is offered! Quote Link to comment Share on other sites More sharing options...
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