I have a 2012 Hyundai Tucson with 55,000 miles. I owe about $12,200 with a 3.1% interest rate. The private part selling estimate is between $14,400 and $14,700 (it is fully loaded and in great shape). I bought it used 2 years ago.
I am debating selling it and getting an older car, something about 8-10 years old but with 60k or less miles. Ideally I would get a Honda, Toyota, or Volkswagen. This would run me about $8k, toward which I would put the $2k in equity and then finance the rest. Basically I would trade a $12k loan on a 2012 for a $6k loan on a 2007-ish car with around the same mileage.
Is this a bad idea due to older cars needing more repairs? Would this not end up saving me money? I am trying to pay down about $9k in credit card debt ASAP.