QuestionI have recently bought a 2004 Chrysler Pacifica. I like the vehicle but my husband and I are getting a divorce and I don't think that I can afford the payments on my own. My loan is for roughly $17,000. My question is, would it be a good idea to keep the Pacifica and pay the loan down and then trade, or can I trade now without getting a bad deal. I am also concerned about the poor gas mileage.
Please Help
AnswerSince you say you bought it recently, then nearly all of your monthly payment is still going toward interest, not principal. If you trade now, it's going to cost you a lot of money, as the dealer rolls over the excess money you owe on the Pacifica into the next vehicle.
I get a lot of questions like this lately, especially about the mileage issue. Before you do anything, figure out the TRUE cost of driving the Pacifica. Keep close track of the fuel mileage over the next 3-4 weeks, and record exactly how many miles you drive. Divide the miles by your miles per gallon so you know just how many gallons of fuel you're using, and multiply that by the cost of gas in your area. Do the same for the vehicle you're considering, and subtract that from the cost of driving the Pacifica. Most people are surprised to find out that the cost difference isn't as great as they thought, and when you factor in the higher monthly payment for the new vehicle, well.......... is it really worth it to trade right now? Only you can make that decision, but try to keep the emotional part of "Dear Lord, how can I keep filling up this Pacifica without busting the budget?" out of the equation. Just the facts, ma'am, just the facts...
