Downgrading a car with a payment question

[WatchinCaptKangaroo]

OK. I don't know what to do so I'm coming to the experts.

History:
I owe about $7k on my vehicle (about 48 months). It is more vehicle than I need (it's an SUV, bought it because I 'felt safer'). My original loan terms were 72 months (very stupid I know) and I was given a very nice gift for a downpayment on it bringing my payments to about $150 a month.

I want to downgrade to an older car and sell my SUV. My plan is to sell my SUV for about $10k (lower than kbb), pay off my loan and buy a car with most of it paid for. I feel really bad, like I am wasting that gift by selling my SUV; in the end I have nothing to show for it.

I also don't know if I'll come out ahead with this plan. Originaly I was going to pay about $100 more a month to my payment and get it paid off in 30 months, but gas prices are not going to go down and I have a feeling I'm going to be in for some maintenance issues (check engine light has come on, the thermometer is not reading accurately (says it's 118 when it's about 80), there's squeeling in the tires when I turn and it's only a 2002. I'm just thinking it's best to get rid of it.

Is this reasonable or should I stick with it and avoid the maintenance associated with a 10 y/o car? Any other advice?

Thanks

 

[RoyalCanadian]

Failing to keep up with the regular vehicle maintenance (which would likely have identified the problems associated with the maintenance symptoms the OP has described) can negatively impact the resale value of a vehicle.

I'm not sure who would be willing to purchase a vehicle with squealing tires and an engine maintenance light shining. The best thing to do would be to get the SUV in to a trusted mechanic to diagnose and repair the problems. An investment in the repairs and maintenance could pay dividends in the resale value of the vehicle.

 

[WatchinCaptKangaroo]

I'm sorry. I have a happy submit finger.

I do keep up with routine maintenance and I will get the engine light checked out and fixed and the wheels issue looked at (a co-worker thinks they need air, my ex thought it was some bearings?) soon (regardless of selling). But for a car this young to have these problems already I'm thinking I'll be in for a future of issues.

 

[swilshire]

This might be a very bad time to try to sell an SUV. I have a feeling the auto dealers are going to do deep discounts because the bigger vehicles won't be moving. Our gasoline went up another 40 cents this week. You might be better off just paying off the vehicle and driving it a few more months until things calm down a bit in the petroleum industry.

Sheila

 

[CarolA]

When gas prices started to spike from Katrina a local newspaper called some folks trying to sell thier SUVs. They were having little to NO success. (One guy said he had received two calls and one was from the reporter!)


My Saab had a check engine light a few weeks ago and it's only a 2001. However, that has not convinced me to sell. I don't see it as a sign that there are issues with the car going forward. I don't know that your logic of "get rid of this one because it has maintenace issues" to buy a ten year old car carries much weight. It sounds to me like you know as much as I do about cars. (They have engines, they go.... that's it!) I would be very afraid of buying someone else's problems and getting a lot of maintenace issues with a 10 year old car.

 

[r5moores]

My advice if you are planning on selling it is to check and see what is wrong with it. For about $75.00 you can have a diagnostic test done to see what is wrong with it. Squeeling in your tires when you make a turn probably means you need air in your tires. Thats why tires squeel. Have you noticed if the check engine light comes on after you get gas? This happens sometimes in my hubbys SUV . About 15-20 mins after he gets gas if the attendent didnt put his cap on tight enough his check engine light will come one. Most of the gas caps are air sealed and it will cause the light to come on if the seal isnt tight. Just a suggestion to check for. If its only that its registering the wrong temp outside and everything else on your inside roof panel is correct ( miles till empty...miles driven....mileage average) then it could be the coil strip around your antenna is damaged. If you look at your antenna on the outside of your car you will see that it looks like a think twisted black tape is wrapped around your antenna. That is what registers the outside temp. Thats not a big issue if thats what it is but You will get way less then what you want if Your check engine light is on. I know for me personally ...If I was buying a car and as soon as I started it up the check engine light came on...I wouldnt want to buy the car. ESPECIALLY if I asked the owner what was wrong with it and they told me I dont know ....the light just comes on. To me that means they are not keeping up with the car and didnt bother to see what was wrong with it.
HTH

 

[dudedisney]

Been driving a Caravan for four years with the check engine light on, nothing's wrong, been checked out thoroughly. At this point, if the light's not on, the engine's not running and that would be a problem.

Seriously, I wouldn't panic. At least you know the history of your car. You don't have that knowledge on another one. You may trade and a week later the engine fall out.

 

[MyGoofy26]

My uncle retired from his job last year and picked up a job at his best friend's dealership just for extra income and he said that a LOT of SUV's are coming in with small cars going out. So it may be a long time before you find a buyer if you're selling it yourself, and if you're trading it in then a dealer might not offer you a generous amount since they'll most likely be sitting with a lot full of SUVs that aren't moving.

Although, depending on where you are, you may have luck come winter when it starts getting snowy and icy.

As for the check engine light - mine comes on ALL the time. My mom does advertising at another dealership and the guys told her to stop bringing my car in when the light comes on, haha. Usually it's the gas cap, like someone mentioned. They also said that a lot of newer cars get a little touchy with the electronics under the hood that the engine light will pop on for no reason. Usually all it takes is a little tinkering under the hood to get it to go off - go get an oil change and see if anything changes, LOL, that's worked for me a few times.

 

[CarolA]

Personally I would not ignore the check engine light. Mine was telling the ignition was getting ready to go!

 

[kaddjr]

If you have an AutoZone nearby, as long as the light is on, they can check it for you for FREE.

 

[HM]

Your check engine light could be something as silly as the gas cap not being screwed on tight enough! Really. It's happened to me twice in my van.

Don't have car advise other than that.

 

[tinaluis]

Is there a Carmax near you? If so, they will inspect your vehicle and give you a written purchase offer. Generally speaking, it is a competitive price and saves you the trouble of trying to sell it yourself. Might be worth a look see.

 

[Chicago526]

Mine goes on when it is really, really humid. Goes of when it dries out. It also went on when my oxygen sensor went bad. The sensor was about $100 or so.

Definatly have it checked, it could be something simple!

As for to keep or sell, I'd say that it would be very hard to sell, who wants an SUV right now? You may be better off keeping it, and trying to keep your driving down to the bare minimum to save gas. Also, regular maintinence can help you keep your gas mileage as high as possible, another reason to take it in!

 

[my3kids]

Reading the mechanical issues, I'm just going to guess your SUV is a Dodge model??

 

[WatchinCaptKangaroo]

Thanks guys. I guess the issue was more of how do I downgrade without getting hosed and did I waste that very nice gift of a downpayment because I'll no longer own the vehicle.

I had the light checked out. The mechanic said it was a sensor and I needed to get it fixed before I had a smog check but it was safe to drive across the country if I wanted to.

I'll get my tires checked out this weekend.

No snow or ice, just crazy drivers in the rain (live in SoCal).

I have a feeling if I keep it when it starts raining I won't want to get rid of it (see above location).

Thanks again!

My3kids - no, not a dodge.

 

[Chicago526]

I had the light checked out. The mechanic said it was a sensor and I needed to get it fixed before I had a smog check but it was safe to drive across the country if I wanted to.

That's what my problem was. I had to get it fixed before my emisions test.

I would say, that unless you can find a REALLY cheap used car that you are 99% sure is in sound condition, to just keep things the way they are. And you're right, for all the bad gas milage, those SUV's are HEAVEN in bad weather! Can't put a price on safety!

 

[lizziepooh]

If your payment is only $150 for a 2002 vehicle, I would keep it. You won't get much of a car for $3000 and could have major repairs costing much more that $150 per month. My daughter has a 2000 car which has had 2 transmissions, new rear end, brakes and I can't remember what all in the past 18 months - All very expensive. Unless you think there is something major wrong with your SUV, I'd keep it.

 

[WatchinCaptKangaroo]

The issue with my $150/mo payment is that I will be up-side-down very soon. I still owe close to $7k and at the high end it's worth about $11k. I have intentions of paying $100 a month more on it soon but it's still a concern.

 

[seashoreCM]

I would keep the car and take the best care of it I can.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[mudnuri]

well here's some mechanical advice

Your car is only 3 years old- your o2 sensor would have still been covered under warranty had you gone in sooner. Not sure when it came on, or what time of 2002 you took delivery- it very well may still be covered.

the squeeling- if it is indeed squeeling- more than likely is coming from the power steering system- check the fluid. Bearings done squeel and neither do low air tires. Bearings for the most part make a AWFUL grinding noise while your driving- ie. wheel bearings. CV Joints click click click when you turn...and nothing else in your suspension system would squeal, other than the power steering system. Low fluid- or bad belt

You could- refinance the loan, for say 24 months, and have a higher payment, but pay less in interest....heck- 7K you could get a personal loan for 24 months at a lower interest rate than a used car, and pay less than the interest on the 7k loan

Brandy