I have a 2003 Kia Sedona, or a "Clunker" according to the government (maybe I should sue them for stereotyping me by using a derogatory name to describe my choice of vehicles...
OK, maybe not...) Anywho, it qualifies for the $4500 deal if I buy the car I like, a Kia Soul.
Here's the deal. Long story, I'm upside down in this car loan, even with the $4500. It was a bad decision made at a very bad time in my financial life and made out of sheer desperation. I just put $1200 into this one for cooling system repairs and tires.
I could probably come up with the payoff, but it would be tight and there is no guarantee that I could get any decent financing at this point (bad time in a financial life less than 7 years ago and less than a year here and at my job). I currently get 15MPG, the Soul claims 28-30. The new car will have a warranty. The Sedona is making noises and has started acting up again, although there are no "idiot" lights as of yet.
Another plus is the IRS is allowing a deduction for sales tax paid on new cars this year without having to itemize.
If you could get decent financing and it might be tight getting the upside down part taken care of, would you buy the new car? I'm struggling turning down $4500 for this one as it's worth a LOT less.
