Ask Terry Questions Car financing

Car financing

By Terry Savage on July 16, 2023 | Wild Card

I financed a car in 2019 with a 1% interest rate. I am now having trouble with the car with a repair costing over 6k. Should I purchase a new car and risk losing the interest rate I currently have ? Should we purchase a car in this economy?

Terry Says

Whew — without specifics I can’t really give you an answer. What’s the value of the existing car? After all these years of payments, if you sell it, will you get any cash out??
I don’t know your financial situation, your income, your ability to get financing now on a new, or used, car.
All that would go into the answer.
But an old saying comes to mind: It makes no sense to throw good money after bad. If you have to spend more than thecar is worth on repairs, it might be time to get rid of it. Then the question of a replacement choice is a completely separate issue.

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