Should I upgrade to a better car?
I'm 20 years old right now in college working part time and living at home. I go to a community college that also offers bachelor degrees through other universities for a fraction of the price so I don't have any student debt and probably never will. My parents don't charge me rent as long as I'm studying so the only major bill I have is my car loan. I make about $800 a month maybe a little less. I have a 2008 Honda Accord coupe V6 EXL so it comes with navigation, Bluetooth, leather seats, heated seats, power everything and more. It has 76k miles on it. I did a quick value on it online and it came out to $13.5k. I can probably get it paid off in about a year and a half and hopefully be worth around $11k at the least since Hondas don't lose a lot of value which I can use as the down payment plus what I can save up for the new car. I want to buy a car worth around $25k. My credit score right now is 760 and it's just going to get better when I pay off my car, I also always pay all my bills never a late payment or an interest charge. I know just from a financial point of view it wouldn't be a good idea but I have a passion for cars it's what I like. I don't spend money partying every weekend, or on drugs, or alcohol, I don't even go out that much. So I would rather spend my extra money and time on cars. So do you guys think I should do it?
You just about can't GET a BETTER car, so what do you mean by better?
Faster, sexier, more luxurious, ?
You trying to impress someone or what?
$800 a month in income doesn't equal a $25K car. It doesn't matter if you can make the payment or not, no lender will even consider you unless you make $1500 or more monthly.
On a $25K car, your payment and insurance alone would eat up the $800 a month you bring home.
Also, your $13.5K figure for trade-in value is WAY, Way high. Are you looking at private party values, or rating your car as "excellent"? Either way, you're way off. Online sources such as KBB or the like always give consumers false hopes. Dealers don't use KBB to put a value on vehicles, they use Manheim auction values. Taking your make/model in consideration, last week's auction value on your car was in a range from $7200 to around $8600. Again, don't take the online sources at face value, ever.
Not trying to bust anyone's bubble, but there's more here to think about.
If you have cash, do it.
Just keep your current vehicle. You are a student.
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