I Bet She Will Buy a New Car

A friend of mine has had her car for six years.  She paid for a service warranty to go along with it, and has had any work done for her car by the dealer. She’s only had to pay an extra two to three hundred out of pocket in repairs over the last few years.

Her original note was for seven years, and she just found out yesterday that the service warranty only lasted for six years. So she was trying to get the service warranty extended. She found it would be $1700 for a one year service warranty, but only $2000 for two years. So she decided to go for it. She had to make a down payment of $500 and pay the entire $2000 in the first year.

Then she decided to see if she could get a better deal through the dealer.

She wasn’t sure what to do. She said the guy gave her an amazing deal on a NEW car.  They will take her six year old car with less than 50,000 miles on it and wipe out the remainder of the contract. They will write a new contract, with 5% interest for the term of the loan, five years (she was paying 7% on a seven year loan), and she’ll get a brand new car with zero down, and no payments until February.

English: Car Dealer, Eastern Avenue, Gants Hill
English: Car Dealer, Eastern Avenue, Gants Hill (Photo credit: Wikipedia)

She was pretty giddy at the thought. She knows how I feel about buying new cars. She tried to rationalize, saying that she just couldn’t be in a car that was going to start breaking down (she is going to be 67 next month).  I told her I could understand her concern, I really can. After all, I don’t have to do the worrying about my vehicle, Mr. A pretty much takes care of that. And he’s often able to fix our vehicles so we don’t incur huge repair bills.

I’m laying odds that she’ll buy the new car. Sweet Christmas present, for her. 🙂

 

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6 thoughts on “I Bet She Will Buy a New Car

  1. 67 is not really the time to worry about the debt 🙂 it is the time to enjoy whatever was achieved earlier in the means of financial stuff and drive around having fun. Plus getting used to the new ride would be somewhat painful too, I think.

    The one thing I don’t really get is: why not just drive the car you got used to and pay only when something breakes down? What’s the reason of paying $2000 if it may turn out that for the next 2 years she won’t have to spend more then $500-800 on some minor replacements if nothing will break?

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    Mrs. Accountability Reply:

    SUVs & Trucks: Thank you for visiting and commenting. I agree with you, I think she should have stuck with the car she had, but she was very worried that the engine or transmission was going to go out on her. We have often agreed that we are on totally different wavelengths when it comes to vehicles… my 1996 Nissan Pathfinder has over 300,000 miles on the same engine and transmission so can’t imagine getting rid of a car with less than 50,000 miles which has had dealer performed scheduled maintenance. But that’s just me.

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  2. I think she should keep the car she has. It only has 50K miles on it. That isn’t very high mileage at all. My car has over 100K miles and my warranty has expired, but it’s still a lot less expensive than purchasing a new one and having payments.
    I also think potential repairs would probably run less than the $2000.00 warranty.

    [Reply]

    Mrs. Accountability Reply:

    Hi Joann, I agree with you. Ah, but she already done the deal over the weekend. She loves her new car! Even though it was a downgrade from the one she had, she is still very happy with it. Thanks for visiting and commenting! Mrs. A

    [Reply]

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