So I am looking into buying a new (or new to me) car and I am doing my homework on the financial side of it. I am looking into two different cars and I am trying to evaluate which is the better short and long-term financial move.

I am wanting to put down $12,000 and my current car is worth about $8,000 on the market or about $4,750 on a trade-in. It still runs and is fully paid off, but I am at that point in my life where I am wanting something a bit nicer and faster. My credit is 760ish and my only debt is a mortgage. I still plan on having 6 months of expenses in savings as an emergency fund. I have a stable job with a good level of job security. I have about $800 going into savings at the end of every month after taxes, 401K deductions, and all expenses are paid. I have not shopped for rates yet as I am wanting to get my standing of where I am at.

​

I am looking at two different cars as possibly my next car, so I am wanting some input as to which would be the best short and long-term financial move.

​

Car A:

Car A is a few year old used Lexus with a market value of 28K-31K, but it has already taken its depreciation. Using other Lexus cars as a point of reference, it would be safe to say that after 5 years it would be worth around 20K-24K depending on wear and tear, but the used car market is often unpredictable. Used car interest rates appear to be around 3%-4% for a 60 month loan, but I have not shopped for one yet since I am not ready to buy yet. Interest paid over the life of the loan appears to be between $750-950 depending on the rate.

​

Car B:

Car B is a brand new Honda Civic Type R. MSRP on a this is right at 38K. Used for this model is not an option since it holds it's value extremely well and used options are only about 1K-2K less for a car with 10K miles on it. The hike in the interest rate from going used would almost match the difference in cost difference between new and used. Used models of this car are still selling for 34K with 35k miles on them, but this is a forever car to me so resale doesn't matter as much to me, but I want to be protected should something happen and I need to sell the car. New interest rates appear to be around 2%-2.5% for 60 months and I would be between $950-$1,300 in interest paid for the life of the loan.

​

Between options A and B which would the better overall financial choice or am I overthinking all of this?