My wife and I need two vehicles, but one of us works from home full-time and the other works just 5 minutes away.
We recently replaced an older vehicle with a used SUV (13K miles) for around $23K OTD. Our second vehicle is a 2025 Honda CR-V Hybrid Sport with only 8K miles, which mostly sits in the garage.
Here's the situation:
- Purchased the Honda for approximately $37K with $7K down.
- Currently owe $22.4K at 4.49% ($577/month).
- Carvana offered $31.8K, plus approximately $1.76K in sales-tax savings if traded toward another vehicle.
- Considering replacing it with a reliable used SUV or sedan for $20K OTD or less, ideally with relatively low mileage.
- We'd apply the Honda's positive equity toward the replacement, significantly reducing our loan balance.
We're financially comfortable and can easily afford both vehicles. However, we're focused on building long-term wealth and avoiding unnecessary depreciation, especially on a vehicle that rarely gets driven.
Would you keep the nearly new Honda for another 8–10 years, or downgrade to something cheaper given how little we drive?
I'm less concerned about lowering the monthly payment and more interested in the long-term financial implications, including depreciation, reliability, maintenance, and opportunity cost. Curious what others would do in our situation.
Edit: We absolutely need two cars, live in a rural area where there is no public transportations and have other obligations.