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Thats the thing; the first step I took when I decided it was time for a new(er) car was I talked to my guy at the bank. We talked about borrowing against the mortgage, but they don't like to do that for a depreciating asset.
From the bank I can get a prime+1.5% financing for a new car or prime+2.5% for a used car (as of right now, prime is 5.250%), on 60 month terms.
The only dealer I've talked to about used car financing said they start at 5.8 for 36 month and go to 7.5+ for 60 month or longer terms.
Right now, dodge, ford, nissan, and mazda all have 0% financing on new cars I would happily drive.
As far as I can tell, a three year old car isn't half the price of a new car, its about 75% and the warranty is mostly expired. Insurance rates don't seem to drop off much until that car is at least 5 years old (using a website to compare a 2009-08-07-06-05 honda civic).
My frame of mind right now, as well, is that I'm looking at more in repairs for my current car than it is worth. I've done all the regular maintence when it should have been done. I know when the new car is 10 years old it won't be on warrantee either, but I'm scared to buy a used car and have an surprise major repair come up in two years.
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