So I have one of the affected VW cars. The thread about how they may be buying back and offering money got me thinking about what I would do if I needed to buy another car. I commute a good bit for work, so I need a smaller car. I'm casually starting to look in case this happens. I have two options on extreme ends of the spectrum.

I can get into another similar sized note (which I'm currently almost finished paying), and use the money from this buyback to get a nicer higher end car and basically just extend my payments for 5 years.

Or, I can use the money from the sale to buy an older car cash and maybe pocket some money. Something around 7k or so. Then I can save up what I'd been paying in the note for a few years and re-visit the situation. An additional savings would be the possibility of dropping collision insurance. Car would be paid for and dropping collision would probably save me another 60 bucks a month. If I did get in an accident, losing out on 7k wouldn't break me. Just wondering what the typical opinion of where it's just no longer worth it usually lies.

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Posted by LNCHBOX

70448

Member since Jun 2009

84488 posts

Posted on 4/21/16 at 10:13 am to KG6

quote:
Then I can save up what I'd been paying in the note for a few years and re-visit the situation

If you're just going to save the note each month to buy a new, more expensive car later, just buy it now. Cars aren't getting any cheaper

Buying a cheap car for cash now is basically just throwing money away since you won't sell it for as much as you paid for it. So you'd be better off just getting the other car now if you know that's what you're going to end up doing.

ETA: This of course assumes you're still comfortable handling the note now.

This post was edited on 4/21/16 at 10:15 am

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Posted by Mr.Perfect

Louisiana

Member since Mar 2013

17443 posts

Posted on 4/21/16 at 10:26 am to KG6

but keeping comprehensive?

or will you drop both?

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Posted by Chad504boy