2015 GS FWD to 2016.5 GT AWD

[meldxb]

Hi everyone
I drive the 2015 Mazda CX5 GS front wheel drive and I am looking to upgrade to the 2016.5 GT AWD model in Crystal Blue Mica with white leather.
I am pretty happy with my current CX5 however I am paying high financing at 4% for 96 months which is crazy but it was what I could afford 2 years ago. This is a good excuse to trade it in and start fresh while moving into a good upgrade. Current models are going from 1.5 to 1.99%.

Any opinions if i should ride out the term or upgrade or just wait for the 2017 model?

 

[Kaps]

Everytime someone says financing is the reason I am buying a new car I am like (smash)

I would suggest you look to re-finance your car. I do not know if it is legal in Canada, in US I refinanced under 15 days after walking out of dealer lot with the $500 rebate. It costed my $60 to re-finance.
My total cost to finance for 4 years is under $700.

I can sometimes understand that few may have lower credit and hence might get a good deal at their dealer - but factor in the cost to buy a new car - Registration + Tax + depreciation hit on your old car, you are losing more money.

Going from FWD to AWD is an understandable reason though.

 

[piotrek91]

Hi everyone
I drive the 2015 Mazda CX5 GS front wheel drive and I am looking to upgrade to the 2016.5 GT AWD model in Crystal Blue Mica with white leather.
I am pretty happy with my current CX5 however I am paying high financing at 4% for 96 months which is crazy but it was what I could afford 2 years ago. This is a good excuse to trade it in and start fresh while moving into a good upgrade. Current models are going from 1.5 to 1.99%.

Any opinions if i should ride out the term or upgrade or just wait for the 2017 model?

Have you considered just refinancing your current car?
Getting a more expensive car will not make your financial situation any better.

 

[meldxb]

Thanks for your response kaps
I honestly didn't even think of refinancing but may not get a lower rate from the bank. However I will try that option.

 

[Kaps]

Thanks for your response kaps
I honestly didn't even think of refinancing but may not get a lower rate from the bank. However I will try that option.

Try a credit union if you have one. I joined DCU very early, I had to donate $5 to a charity and maintain $5 in one of my accounts. They now give me 1.74% on my car loan.

I see Canada has more credit unions in NA. You should try them. In contrast the dealer gave me 5% interest rate despite me having a solid and responsible credit history. He said you need more credit cards and accounts and I went - on yeah!

 

[meldxb]

So I checked with Canada Auto Approval for a rate and they said that 4% is pretty low already and to get a better rate I would have to trade in the car. From what I gather most refinancing options here are for folks with bad credit ratings.

 

[ALafya]

Not enough information to know for sure, but seems like you will exchange paying perhaps ~$4K in interest over 8 years for paying ~$2K now, as well as materializing your current car's loss of value by selling it.
IMHO, you should not have taken that loan. If you can, consider refinancing it to a lower rate, or at least accelerate your payments on it, so you'll pay less interest.
It is a mistake if you are only concerned with your monthly payment, you want to consider the overall set of transactions and your overall cost.

 

[Kaps]

So I checked with Canada Auto Approval for a rate and they said that 4% is pretty low already and to get a better rate I would have to trade in the car. From what I gather most refinancing options here are for folks with bad credit ratings.

From their website - they are targeting folks with bad credit. I would not go that route. Credit unions is a lot better.
I am guessing you may not see a 1.99% rate or something but better than 4%.

 

[meldxb]

Hi Alafya, I paid a 3000$ DP initially so I am currently sitting at 22000$ owing. As long as I can trade in close to that value I maybe doing alright to trade for a new one.
My total cost of borrowing is 5000$, I am already making extra monthly payments but it is only saving me 800$ overall in interest.

 

[Unobtanium]

I think the AWD is worth it alone, personally. When my diff went out and my CX5 was a FWD, it was horrible.