re: When would you all recommend getting a new car?

Agreed. People still have it in their minds from 50 years ago that 100k miles is the end of life for a car.

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Great point. I did fail to mention we are trying for our second child.

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In that case, you may want to put that $25k aside for things you might actually really need.

I won't criticize your financial decision of buying. But I can say there are deals to be had on Expeditions. Also, buy the big one. Good chance you will eventually want the extra room, little chance you will regret having too much. If you have kid 3, you'll be ready.

Ford also has good financing deals currently. Don't put the 25k toward the car. Trade, get that sweet 2% and steal the difference in interest. Keep $ for rainy day

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she has a ford explorer with around 100k miles and it is time for us to upgrade since we have a kid)

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How big is the kid that he can't fit into an Explorer?

Seriously, only 100K on the Explorer and only 1 kid? If it was me, unless there was anything wrong with the Explorer mechancially, I would bank the $25,000 and drive the Explorer for another 100,000 miles.

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Her car is just worn down and she really wants something like a Tahoe or Expedition.

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So she doesn't NEED a new car. She WANTS a new car. The smart thing to do is to put that $25,000 into something short-term and generate a return until you actually NEED a new vehicle. Prices *may* have come down by then.

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For example, someone who traded a lower mileage vehicle at say year 3 would take a huge depreciation hit, while the value was also still in decline. But maybe at year 8, the depreciation had dramatically slowed and the value had reached a relative low point.

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It isn't a terrible idea to buy a three year old car that was originally leased. Providing you have a thorough inspection to find any unexpected issues.

You would avoid the worst of the depreciation. I have a friend that does this with Lexus every few years.

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An acquaintance of mine, who I’ve known for about 10 years, does just the opposite. He trades vehicles every 2-3 years and buys a new vehicle.

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I see this too. Worst possible value for the buck.

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we can discuss his boat later

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Boats are just killers. Not just the tens of thousands (or hundreds of thousands) of purchase price. The costs of maintenance, docking, insurance, and repair are enormous.

I see way too many middle class or lower upper class people destroying themselves financially (without even realizing) with what is a luxury purchase. Renting a charter is probably the best option for the ten or fewer times a year that recreational boaters get out on the water.

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You must not know many women.

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I'm married with an 7 week old, I know.

But again zero reasonto get a body on frame big honking SUV with 1 kid unless there's some massive towing requirement.

We have a MDX 3 row literally at our parents right now and filled up the trunk with 3rd row DOWN very easily with 1 newborn on the road trip here

I get wanting a bigger 3 row SUV even with 1 or 2 kids for the crap you can haul/friends etc...but there's zero need to get the yukon/tahoe/expedition class unless you DO tow very heavy things (5000+ lbs) fairly regularly, because they get significantly worse fuel economy and cost way more than equivalent car based 3-row SUVs like the Pilot/Pathfinder/Telluride/Palaside class 3 row types. Heck even those can typically tow 3500-5000 lbs. MY friend has an Acadia he uses to tow his 20 foot bowrider a couple times a year and it's probably around 4000lbs with trailer and it gets the job done.

People overbuy on vehicles like Expeditions/Yukons for no reason and they cost way more than the unibody models which typically have just as much room inside (short of the long wheelbase models) with better fuel economy.

I believe for the entire month of September they have 1.9% financing for 5 years (if you have good credit of course). I also found a dealer in TX offering $5k+ off sticker. In today's environment, I considered it a decent deal. Also the XLT has almost everything you could want on a vehicle for much less than the higher end trims. So for ~$60k you can get a new XLT with leather, chilled seats, lane keep, etc. Again, I recommend the big one.