Should I exchange my vehicle?
Hi all, been reading and listening to specific podcasts for probably 3 months now. Selling my home at literally the best time I could have, purely by luck because the decision to move was made a year ago. Ultimately I am going to be debt free and moving to another state to (hopefully) get started with a house hack duplex-quad. Now to the meat of things.
I currently drive a 2015 ford fusion titanium *hybrid* which is very economical from the minor maintenance and fuel perspective. However, I have a few reasons to consider trading over to a larger vehicle.
Factors for consideration:
I have 2 young children in car seats and that is pretty cramped in the fusion. This will only get worse as they get older.
Being a hybrid with leather interior, hauling anything is pretty much an extreme pain because i have to take so many precautions to avoid cosmetic damage. Also the trunk is very small compared to some other sedans.
It would close to an even trade, possibly having a little excess equity. It mostly just depends on negotiations for each transaction. Gas cost would go up, insurance would likely go down because not going to be luxury or hybrid.
Maintenance schedule is currently known. Post-trade, it would be a risk factor. I have a plan to mitigate some of this, but not 100% and some unknown upfront costs could arise. Since i am moving to a new state, registration and associated taxes are pretty much the same either way.
Currently only have 1 car, and an older cruiser motorcycle.
If i travel long distance it is usually once a year. I don't have to commute (i did when i bought he car) and currently spend about $35 a month on gas. I really do not drive much.
Wife wants a bigger/safer feeling car. I do not feel that it is financially wise to have two cars currently, also makes parking in *some* properties more complicated than it needs to be. If i need to go somewhere very badly and she is out with the vehicle, the motorcycle is always an option.
I love the car, and don't want to feel like i wasted all of the investment in the hybrid by offloading it before the cost/benefit favors the hybrid. At the same time, i understand sometimes you just have to cut your losses. I think i would be better served by a larger vehicle with towing capability as a landlord.
Use an entity to make the purchase? I am not sure on this as i havent spoken with a cpa or attorney yet.
Questions for clarification and input are greatly appreciated!