Does anyone have a strategy for buying a new/ex-demo car every 3-5 years?
Essentially, buying a car and owning it until the new car warranty runs out and then trading it in to upgrade to a newer model – rinse and repeat.
Would it be better to do that with brands like Mercedes or middle tier brands like Subaru/Mazda?
Reason I ask is that I've got a Mercedes GLA 250 that's 3 years old with $43,000 owing on it (paying roughly $935pm). Interestingly an early termination quote has me paying out $41,000 (and I suspect the car is worth that much – hasn't done a lot of miles)
It came with 3 years warranty and free servicing which has just run out and I didn't think about it at the time and locked in a 5 year loan with 30k payout at the end (or trade the car in) as I got a good rate.
But now thinking about it – I should have financed for 3 years and upgraded (or asked for 5 years servicing and warranty – to keep everything on the same schedule)
I've briefly mentioned it to the dealer and he seems happy to try and offer me a deal to upgrade to a newer car but am worried I may get taken for a ride (pardon the pun).
What is my best option here:
(a) wait it out and keep the car and look at trading it in when the financial term ends (ie 5 years)
-would mean I have to pay for next 2 years servicing and of course not covered by warranty
-also monthly repayments mean I will pay ~$24,000 over next 2 years
-I suspect I won't pay another $30,000 to keep the car as I assume the older it gets the more expensive any problems are to fix
(b) upgrade now to a new model Mercedes and try to lock-in new terms with finance/warranty/servicing on minimum 3 (ideally 5) year schedule and just trade it
-not sure what kind of deal / finance I would get here
(c) go for the early termination and try and get a car like Subaru XV (which looks quite nice) on a 5 year warranty on finance (and trade it in at that 5 year mark)
Also, my car is insured with Mercedes – shoud I switch to someone else now? (?NRMA is best these days?)