I just don't understand this logic

DaiLyght

Co-worker just got a new car. Her previous car, a 2005, had only a couple of months left until it was paid off, but she traded it in this weekend on a brand new car. She kept negotiating with the dealers to "get a cheaper car payment" than what she was paying on her '05 car. She said she walked several times before they got her payments down to $20 less than the current car.

So wait - you didn't negotiate the price of the new car, the price of the trade-in, the interest rate, no - you negotiated the payments?? And you saved $20 a month? How much MORE are you going to spend on your insurance (going from a compact to a crossover SUV)?? How much MORE are you going to spend on gas?? Not to mention the fact that you only had like 4 months left until no more car payments, but that's okay b/c now you're saving $20 a month? Maybe it's just me, but brain just doesn't work like that.

hikerbeth

I'm the type of person who buys used cars outright and then drives them into the ground, so yeah, the logic doesn't make sense to me.

joseysbride

You don't understand it because it doesn't make any sense! 

npeacock

Hmm - I don't get it either.

stacynikki

I don't get it either.  My sister did the same thing and my Dad thought she was crazy because she is always bitching about being broke. 

I was more then thrilled to have my midsize SUV paid off and to drive it into the ground until the kids are out of daycare.

Yodajo

hikerbeth:

I'm the type of person who buys used cars outright and then drives them into the ground, so yeah, the logic doesn't make sense to me.

Ditto.  I don't think I'll ever buy a new car ever again.

There is no sensical logic there at all!

elm1032004

It sounds like she is the type of person that feels like she needs a new car and only cares about what the monthly payment is.  It's definitely wierd.

buffalo_buckeye

I bet she has a lot of debt. We finally have no car payments and I love it! Too bad one car is a 96 and the other an 01. We are just waiting until something breaks that is more money than the car. I'd rather use that money for a trip or nice dinners.

AggieCouple

Well, to some people, a car is just a vehicle, but for others, it's a tool, a second home, an accessory, a fashion statement, whatever.  I can totally see going from a compact to an SUV well before the compact has seen its last days if the owner (1) got a large dog (2) needed to haul a bunch of stuff (3) had a kid (4) plans to travel in it (5) felt safer in a larger car or (6) just needed more room for whatever reason.  If she went from one compact to another, I can understand not understanding, unless she went to a much nicer car (which, even if you don't agree with it, you'd understand that move?).  But going from one kind to another?  It's OK to change your mind, and I can see her only being able to justify it if it didn't impact her monthly budget, and thus the negotiations.  I'd imagine that negotiating a lower monthly payment must have impacted the drive out cost.

hopefulmom

I agree with Aggie.  Actually, she probably will pay less for the SUV as far as insurance because if in an accident it will sustain less damage than a compact car (although only if the compact was new as well).  If her car is that old she should just have PLPD anyway.  I have a car now...but I loved my SUV...just can't afford the payments.  I just leased another new car...same size as my last one.  It's a 3 year lease and I'm paying $5 more a month!  If I could get an SUV for the same price I would hop right on that deal!  Cars go up in price (as do payments) so she really made a good deal.  I would have done the same.