Good time to upgrade?

[Bobby O]

I have a black 2018 GT2 AWD with 35,500 miles, the car is great, but given the current car market, is it worth trading it in and getting a 2022 Stinger? My lease buyout was 27K, but the car is currently selling for $36K-$42K on the resale market and yesterday the cash offer (KBB) on my car was $37K. A 2022 Stinger is $54K, so if a dealer will sell at sticker (and I can find one that I want) then theoretically I can get a new Stinger for $17K, a little over $4K/ year, 30% total depreciation. Standard depreciation tables have a four-year-old car at 50%, so it makes economic sense to do it, yes?

 

[MerlintheMad]

Granted a good find of a newer car, why not do it? But if your Stinger is satisfactory, why do it? Your car is still a young 'un with low miles.

 

[87and66]

no point imo. Largely the same car.

 

[Bobby O]

no point imo. Largely the same car.

You're both correct, thank you for the responses. I'm keeping the 2018 Stinger.

 

[stoopid]

To answer your title's question, is it a good time to upgrade, the answer is... it depends.

If you actually get $10,000 in equity on your tradein ($37,000), and you get MSRP on the new Stinger ($54,000 - $10.000 = $44,000 <-- good price on a GT2), then yes this is favorable for you.

Think of your trade in these terms, you had to pay $27,000 for the 2018 and that needs to be factored into the cost of the new car.

When I traded in my old car in December 2020 the used car prices were starting to seriously rise. My car gained a few $$ over the course of the year. It made the deal for the Stinger possible. You're in an even better situation now with used prices being insane. This assumes you can get into a new Stinger for MSRP, can find one you want, and the monthly payment is reasonable.

 

[Bobby O]

To answer your title's question, is it a good time to upgrade, the answer is... it depends.

If you actually get $10,000 in equity on your tradein ($37,000), and you get MSRP on the new Stinger ($54,000 - $10.000 = $44,000 <-- good price on a GT2), then yes this is favorable for you. 2018

Think of your trade in these terms, you had to pay $27,000 for the 2018 and that needs to be factored into the cost of the new car.

When I traded in my old car in December 2020 the used car prices were starting to seriously rise. My car gained a few $$ over the course of the year. It made the deal for the Stinger possible. You're in an even better situation now with used prices being insane. This assumes you can get into a new Stinger for MSRP, can find one you want, and the monthly payment is reasonable.

I stopped at the KIA dealer, here are the numbers: The Stinger the dealer has is a black 2022 GT2 AWD Scorpion MSRP $56,175, my trade is a black 2018 GT2 AWD with 35,757 miles the dealer says is worth $35,000. My cost would be $22,925.74 + 6% tax $1,375 =s $24,300.74 to go from a 2018 to a 2022, the car being basically the same except the 2022 is the Scorpion model. If the Stinger stops production in 2022, is the Scorpion model going to be the one to have and keep?

 

[MerlintheMad]

If the Stinger stops production in 2022, is the Scorpion model going to be the one to have and keep?

The one to keep is the Stinger that satisfies your wants and needs. If you're thinking of this as an investment to capitalize on later, that, in my opinion, is a silly reason to have a Stinger.

 

[stoopid]

I stopped at the KIA dealer, here are the numbers: The Stinger the dealer has is a black 2022 GT2 AWD Scorpion MSRP $56,175, my trade is a black 2018 GT2 AWD with 35,757 miles the dealer says is worth $35,000. My cost would be $22,925.74 + 6% tax $1,375 =s $24,300.74 to go from a 2018 to a 2022, the car being basically the same except the 2022 is the Scorpion model. If the Stinger stops production in 2022, is the Scorpion model going to be the one to have and keep?

I assume you mean "does this make financial sense?"

It can, the used car market being hot is the only reason your tradein is worth what it is. It's also why the dealer is getting full MSRP (or more in some cases). Which side of the equation is more inflated? I'd say your tradein is more the outlier. A first model year (5 model year old) car with 35,000 miles is going to have significant depreciation in normal times. Prior to Covid, desirable Stingers like a scorpion package [GT2] were under MSRP but not $10,000 under. You're talking old 2018 Stinger vs most desirable 2022 Stinger. You're not just getting a new car, you're getting a top trim car with no miles and about the same (or less?) monthly payment. IMO the 2018 is going to plummet in value once things return to normal, just based on how the model year usually factors into the resale value. The 2022 will hold value longer even after a return to normal, especially when the 2018 is going to be 6, 7, 8+ years old when you go to sell it versus the 2022 being 1, 2, 3+ years old. If (but more a case of when) the Stinger is discontinued there's a greater chance the 2022 will be the more valued and desired model as well, being that it will have the 'best'/newest tech and more desirable for that reason as well in the long term.

I agree with the sentiment that the car you need is the one that makes you happy, but there's sometimes more to it than that. There's math at play here and I think it favors you getting the 2022.

 

[Kram]

I stopped at the KIA dealer, here are the numbers: The Stinger the dealer has is a black 2022 GT2 AWD Scorpion MSRP $56,175, my trade is a black 2018 GT2 AWD with 35,757 miles the dealer says is worth $35,000. My cost would be $22,925.74 + 6% tax $1,375 =s $24,300.74 to go from a 2018 to a 2022, the car being basically the same except the 2022 is the Scorpion model. If the Stinger stops production in 2022, is the Scorpion model going to be the one to have and keep?

If I read this correctly, your lease buyout is 27K and they're going to give you 35K for it in trade. So that means you'll have $8,000 in equity to put towards the new car? So $56,175, minus the $8,000 equity, and then you'll be paying $48,175. Is that correct?

 

[namja]

Dang if I got 10K in equity, I'd take it. Why? Because my $12K lease cash in 2019 was about $10.5K after taking out tax.

 

[cp18]

I think you should do it. I think the trade in market is as hot as you will see and that is a greater + than the cost of paying MSRP.

I am looking at doing something similar. I got my 2019 GT2 AWD used with 6k miles for $41k two years ago. I already have 51k miles. I can trade it now for slightly less than what I bought it for and pay MSRP for a new Stinger GT2 Scorpion. I love this car and love to drive it so don't conserve on the mileage. I don't know how long they will make them so I don't mind the upgrade. Plus I can get remote start ;-)

 

[trainheavy]

I’m actually at a dealership right now inquiring about the same thing. I have a blue 2018 GT2 with only 21.6k miles on it. But I’ve always wanted the ceramic silver with the red interior.