Okay, here is my dilemma. If you guys could help me out, that would be great. I have 2010 XFR which I absolutely love. Unfortunately, or fortunately depending on your point of view, I have 65,000 miles since I love driving this thing. I have two more years until I pay it off, and I'm looking forward to not having a car payment. But the truth is, the monthly payment is a little brutal since I took it at a pretty high interest-rate at the time. Compound that with the fact that I just paid $1200 for a new water pump, which leads me to wonder if I should trade it in for a 2013 model.

The 2013 XFR has an 8 speed auto, stop/start, the revised front end, a better stereo, and you could get carbon fiber inserts. It also has a warranty, and I think that if I get it at a lower interest rate, I could save a couple hundred dollars on the monthly payment.

So it comes down to warranty and lower monthly payments versus only having two years until owning the car free and clear.

I may also be in the minority, but I really love the way the 2010 XFR looks. The 2010 was the only model year that had the chrome grill, and the original rear end treatment was much classier than the updated version. There's also something more unique and elegant about the front end of the 2010. The new front end, while more aggressive, looks a little bit too much like an XJ and newer Audis.

What would you do?

 

Have you driven the 8 speed auto?

You usually have to keep a car 5-6 years to overcome the cost of the depreciation hit and financing costs. If it's about dollars, run the math on what you can get for the car, cost of new, etc. It is almost always cheaper to keep your current vehicle even if it's not under warranty than buying a new one and taking the depreciation. At three years into your loan and at a high interst rate you need to check if your car is worth more than what you owe on it.

Buying cars is not always about money though. Penfed Credit Union has some great financing rates on cars. There is a small membership fee and you go online for the application process. I used them and it has worked out. You may also be able to get a loan on your current car at a lower interest rate and pay off your current loan without much, if any costs from Penfed.

If the new XFR doesn't drive better with an 8 speed auto, I wouldn't make the switch. Is the stereo that much better?

 

+1 on PenFed!!! You can't do better than them , he beat me to that punch line mentioning PenFed Credit Union.

Far as trading up here is what I have been thinking as well, With 60k on a 2010 XFR trade in is only $40K max in resale condition. If prep is needed then it will be near $38k trade in.

I say shop hard for a perfect 2012 left over and get a good rate on that one. The new 8 speed isnt better, it was just a replacement.
BMW has been using our current ZF's for years and they have been failing in the M models and they upgraded to the new 8 speed ZF as well. The 8Speed getsbetter MPG and has just a tad higher max TQ rating to keep all in check.

I have 29K miles on mine and mine is mint and needs nothing and trade in is only $45K and I still have a year to go on warranty.

 

I am trying to offload my 2011 XFR with 16k miles at the moment and best trade value I have been offered is $46k so unless the values are highly region dependent, I think you are working off the wrong figures.

 

Other considerations are how long you'll actually want to own the car after it's free and clear, how costly maintenance could become with the mileage you put on, and how much you'll get for it once it's that age and mileage. If you end up buying an additional car to drive to baby the Jag, or out of reliability concerns on longer trips, then that adds to the cost.

There's no inexpensive solution to owning an expensive luxury/sports car, but in my case I bought a one year old corporate XKR at a huge savings (and I'm listed as the original owner) and plan to sell it before the standard 4 year warranty expires. I'm expecting to minimize depreciation while I own it, and have minimal maintenance costs, and buy the next one the same way...always enjoying a newish and reliable Jag.

As far as preference with styling, I think the newer looks generally become preferred, sometimes more quickly than others, and the older style suddenly becomes dated looking. When the new XK comes out later next year I know many will prefer their current XK styling, but the rest of the world will be raving about the new one!

Good luck with your decision, but checking out refinancing options sounds like a great place to start.

Bruce

 

It's your decision but I'd keep it and pay it off. Find a different lender if your current interest rate is too high.

I've thought about upgrading as well but I've decided to stick with mine for the time being. I'll have mine paid off within a month or two. Then I can divert some funds to a few more mods to set the car apart and enjoy the car. For me, I don't think it's worth $15-20k + trade-in to get into a XFR.

 

Many dealers are (figuratively) dropping their drawers to get rid of 2012"s, lots are unregistered demo's...

 

Is XFR a must? Nothing wrong if it is. But, you might be able to get significantly lower payments if you traded for a 2012 Supercharged model instead. It would probably be the best option.

I would recommend getting extended warranty and keeping your car, but the miles are already up there and you drive a lot as you mentioned.

If you like the body styling of XFR, you can always change the bumper cover and few other moldings for a small amount, if need be.

 

Refi your loan on a 2 or 3 year term and buy an extended warranty. Done.

 

I really appreciate everybody's input on my question, but there are a few things that need to be clarified. First, I have 2 years left on a 5-year loan. As you know, most of the interest is paid up front. As such, even if I refinanced it with a very competitive credit union as has been suggested, my monthly payment would be exactly the same as it is now, maybe even a tick higher. It would make no sense extending out the term for 3 years.

Another suggestion is to purchase an extended warranty. When I had 47,000 miles, I inquired as to how much an extended warranty would be on my car. I was told $7000. What's the sense in that? I might as well just take a wad of money and burn it.

It seems very clear that the only choice I have is to keep my car, pay it off, and fix it as I need to. Otherwise, to just get a 2013, and start all over again at a better interest-rate.

I'm leaning on keeping the 2010 because, although I think that they're all nice, I just think that the original XFR is the most special. The chrome grill, and the gray brake calipers with the R symbol are key. The original side vents that are completely vertical are also really nice. Also, the surround around the headlights has more chrome, and the car as a more unique look to it. The rear of the 2010 looks more like an Aston Martin, as well.

 

Seems like a rational decision.

 

If I am off a bit then the poster and my car is even worth less if they are only giving you $46K for yours?

 

You can set set the length of the loan based on what you want to pay. If you have 2 years left on the current loan then you could get a 2 year car loan with a cheaper rate (assuming yours is higher than what's available). Also, car loans aren't all like home loans. I've never had a care loan that is front loaded with interest. Granted I usually go through Wells Fargo but I had originally gone with a Credit Union for the Jag and it was the same for that particular loan. The interest was taken out evenly from every payment so you could pay it off early and pay less interest.

I did search a bit on car loans and it seems credit unions do at times front load loans. It appears to be rare though. I guess if you do look into another loan make sure it isn't front loaded.

 

Actually, you don't typically pay "extra" interest on the front of either home or car loans. You have a fixed payment amount where the payment amount is split between accumulated interest and the outstanding principle.

As the month progresses, interest is accumulated each day on the outstanding principle. When you make your payment the amount for the month's accumulated interest is paid off first. Then, any amount left over goes towards paying off the principle.

So, in the beginning life of the loan you pay the vast majority of your payment towards the interest that was accumulated during the month. But, as the principle gets smaller, there is less interest accumulated for the month and more of the payment left over to be applied to the principle.

Make sense?

 

FWIW I purchased my car in early October. 2010 XFR with 65,000 miles and included the CPO 100,000 mile/5 Year warranty, car in VG condition with ACC and the suedecloth headliner. Cost was $39,000 out the door.

Cheers,

- Will