Originally Posted by Yadkin
So it will cost you $8000 for a one year newer vehicle.
Assume a 0% interest rate. $8000/ 12 = $667/ month.
Assume your existing vehicle was $40k and 60 month loan period, again at 0%, for $667/ month.
Based on that analysis, you are breaking even. But you're getting a more expensive vehicle, and it's one year newer, so he's offering you a great deal.
This is flawed math.
A 5 year old vehicle with 60K miles has a trade in value of ~14K
So 40K - 14K = 26,000/60 = $434/month.
So not the greatest deal if you are typically a long term owner as the above vehicle would be under the 5/100 warranty the whole time so the owner would really not have any high repair bills. The owner might even do nothing other than oil changes over that time period and if the tires are well rotated could have avoided buying a new set.
So $667 vs $434 a month is $233/month difference * 12 months = ~$2,800.
So does the summit have ~$3K more of features?