Four options for trading down a car you can no longer afford
Ever since James Bond first roared around the curves of Europe in his Aston Martin DB5, luxury sports cars have been stuck in the imagination of men. But these days, you’re just as likely to find women having love affairs with their cars.
Take China, for example. China is producing more female millionaires than anywhere else in the world right now. And what are these ladies doing with their newfound riches? Buying cars! According to Maserati, 30 per cent of its Chinese sales are to women, versus 10 per cent in Europe. Women account for 20 per cent of Ferrari sales in China, which is twice the average elsewhere. Sadly, we are not all millionaires (yet!). And whether you drive a Maserati or a Yaris, the price of that little purse-extender can take a massive toll on your monthly finances. Between the price of gas, maintenance and financing costs, all too often, the car you thought you could afford turns out to be way more expensive than planned.
According to Stephanie Holmes-Winton, president and CEO of The Money Finder in Halifax, vehicle debt is one of the hardest to alter once you’ve signed on the dotted line. For one thing, new cars depreciate in value rapidly. Second, most people choose a car based on the monthly payment, rather than the total purchase price.
So, what do you do if you find yourself driving around in the car of your dreams, while stressing about the maintenance and ongoing costs? Here are some options to consider... read more
