Post by
badutahboy »
https://forums.nicoclub.com/badutahboy-u98159.html
Thu Jun 12, 2008 7:44 am
Your logic is inherently flawed... You didn't say how many payments you have left on the G, but doing some quick math (divided your payoff by your payment and added a couple payments for interest), I'm assuming you have around 40 months left on the loan.
So, your math shouldn't have been $100 savings * 60 months, because you aren't saving $100 for 60 months.. you're saving $100 for 40 months, then LOSING $320 for 20 months, because if you didn't make the deal, you'd be done paying your car off sooner.
The math you should have shown is this:
$3000 cash now + $4000 ($100/mo savings * 40 months) - 6400 (320 * 20 extra payments) = a net savings of 600 by switching to the Z...
Now, in 5 years, do you think the difference in value between the two cars is going to be more than $600?
Another way to look at it is this: The total amount of your remaining payments on the G is probably around $18k... Total payments on a Z @ $320 * 60 months is 19200..
So you're already upside down in the Z... and that's not factoring in the fact that you'll have to pay sales tax again, plus title and registration, plus added insurance for a sports car, plus any unexpected maintenance from an unknown car.
Add in the reasons everyone else mentioned, and it's not a fiscally sound idea, so unless you are just trying to justify making a change you emotionally want, I wouldn't change cars.
Why didn't telcoman beat me to the 401k math?
One other factor not mentioned yet... The G has a 4 year 60k mile warranty.. presumably you've got another year and 11k miles under warranty... The z's warranty is 3years/36,000 miles... meaning it has no warranty left. Buy an extended warranty, expect to spend $2,000 on it, making the deal even uglier.
Modified by badutahboy at 11:06 AM 6/12/2008
Modified by badutahboy at 11:08 AM 6/12/2008