Keep car or get an older one?

[Judique]

WOW!!!! A monthly pass in metro Chicago costs $100 and gets me everywhere I need to go.

A lot of people are subsidized here by their jobs, so it's cheaper for some. But, I couldn't believe it when I learned it was so expensive! When my adult kids worked downtown, they would always take metro because of parking, but the commute was also shorter and less expensive.

When my son got this job, he relied solely on metro because he had a failing vehicle. But after a few months the math kicked in and he shopped for a commuter car - small with high gas mileage. 45 min drive versus an hour and a half on metro also.

 

[Judique]

Then he must be in one expensive area. A monthly pass for my area is $49 for the general region.

What area are you in?

We are Washington DC, Md, Va Metro.

And I just talked about this thread to him - he said it's probably more expensive now.

 

[tvguy]

Then he must be in one expensive area. A monthly pass for my area is $49 for the general region.

$100 here too, and we have pretty pathetic public transit.

 

[footballmouse]

It's 2012 Chev Malibu. If I sold it back to a dealer then I would break even. If I sold it privately then I could get about $2000 more than what I owe. Public transportation is out of the question, I work nights. I couldn't get a 2nd job paying more than what I make now. My OT stopped over the summer that's why I fell behind. The loan I have for it is for another 5 1/2 yrs. I knew it was a bad deal then but at the time I couldn't walk out of the dealership without a car, it was 8 pm and my car wouldn't have made it back home. When I bought it, everything was fine, I just knew getting in a loan for 7 yrs wasn't smart.

 

[mousehockey37]

It's 2012 Chev Malibu. If I sold it back to a dealer then I would break even. If I sold it privately then I could get about $2000 more than what I owe. Public transportation is out of the question, I work nights. I couldn't get a 2nd job paying more than what I make now. My OT stopped over the summer that's why I fell behind. The loan I have for it is for another 5 1/2 yrs. I knew it was a bad deal then but at the time I couldn't walk out of the dealership without a car, it was 8 pm and my car wouldn't have made it back home. When I bought it, everything was fine, I just knew getting in a loan for 7 yrs wasn't smart.

Are you able to get a roommate? Since it's a mortgage, could you possibly rent a room to a friend? I mean, anything is better than nothing.

 

[xlxo]

Thoughts....

• they say if you can't pay off the car in 3yrs.... it's too much car for you.
• The Malibu is not a vehicle I would have looked as a fuel efficient commuter vehicle... especially if there was heavy traffic. GM vehicles have poor resale values where I live.

 

[footballmouse]

No, we can't have a roommate, my kids have the other bedrooms. The Malibu gets 23 mpg, coming from an SUV that got 11 mpg, 23 was wonderful.

 

[Marionnette]

Thoughts....

• they say if you can't pay off the car in 3yrs.... it's too much car for you.
• The Malibu is not a vehicle I would have looked as a fuel efficient commuter vehicle... especially if there was heavy traffic. GM vehicles have poor resale values where I live.

And I'll add one more thought:

• Never take out credit using bonuses and overtime to determine whether you can afford the monthly payments. If the OT stops you find yourself coming up short, as the OP has learned.

And I'll ask this again, OP: Will selling your current vehicle and buying a beater free up enough cash so that you can meet both the new car payment AND your mortgage payment? If not, you may be kicking the can down the road a little further.

 

[supersnoop]

It's 2012 Chev Malibu. If I sold it back to a dealer then I would break even. If I sold it privately then I could get about $2000 more than what I owe. Public transportation is out of the question, I work nights. I couldn't get a 2nd job paying more than what I make now. My OT stopped over the summer that's why I fell behind. The loan I have for it is for another 5 1/2 yrs. I knew it was a bad deal then but at the time I couldn't walk out of the dealership without a car, it was 8 pm and my car wouldn't have made it back home. When I bought it, everything was fine, I just knew getting in a loan for 7 yrs wasn't smart.

Sell the car. Buy a 1998-2002 Honda Civic for $2,000. Drive it until you save up enough to buy another car.

 

[Sunnywho]

Supersnoop's advice is solid. An older Honda Civic can be a very reliable car.

 

[xlxo]

When buying car... questions I also factor in...

• what is the taxes?
• what is the documentation fee?
• what is the annual insurance?
• some will insist on extended warranties and protection packages that will increase the cost.
• what is the real final price before I can drive it off the lot?
• how much is gas and parking to operate this vehicle for the year?
• any dealership incentives?

often the final price is an extra $5000 where I live. If you can't budget for this... you have too much car.

 

[xlxo]

Another warning about new cars.... are there rodents where you live? Have you heard about tofu cars? New cars have plastic parts made from Soy products... a target for hungry vermon.

http://globalnews.ca/news/1958337/r...-an-increasing-problem-in-the-lower-mainland/

 

[Cynt]

First, I highly recommend you read Dave Ramsey. Second, do not sell and purchase another vehicle. TIME TO GO ON A FAMILY SPENDING DIET. Cut your expenses and stop eating out. If it's not a need don't purchase it. Two cell phones - one for you and one for your husband on the cheapest plan you can afford - no bells and whistles cell phone. Cut cable and any extra-curricular activities your family is involved i.e., gymnastics, music lessons, dance, baseball, volleyball, basketball, football, etc. Yes it's a hard pill to swallow but once your bills are current and your car is PAID OFF you can resume.

 

[Nayan]

First, I highly recommend you read Dave Ramsey. Second, do not sell and purchase another vehicle. TIME TO GO ON A FAMILY SPENDING DIET. Cut your expenses and stop eating out. If it's not a need don't purchase it. Two cell phones - one for you and one for your husband on the cheapest plan you can afford - no bells and whistles cell phone. Cut cable and any extra-curricular activities your family is involved i.e., gymnastics, music lessons, dance, baseball, volleyball, basketball, football, etc. Yes it's a hard pill to swallow but once your bills are current and your car is PAID OFF you can resume.

Agree 100% AND perhaps get rid of the idea (or cancel) the trip on your ticker. If you can't pay your bills there is no way you can afford a trip to Disney.

 

[tvguy]

Supersnoop's advice is solid. An older Honda Civic can be a very reliable car.

An older Honda is just like any other older car. Time and mileage take their toll. Their edge is reliability when new, as a co-worker is finding out with her 2003 Civic. New front in, new air bag sensors, new abs sentors. $2,500

 

[footballmouse]

First off all, I'm NOT going on a trip to Disney, that was from 3 yrs ago. We don't eat out and I have a basic cell phone and my kids do not have phones. I do cut costs as much as I can. Once my 2nd job starts next month then I will be able to make the current car payment and the mortgage without any problems. I just don't want that length of loan anymore. I'm not thrilled with the Malibu, it wasn't my first choice but like I said earlier, I had to find a car that night. I was finding the Altima, Escape and Camry are a decent price for a used from a private dealer. I'm just nervous getting an older car w/higher mileage.

 

[dfchelbay]

Is there anything you own that you could sell on Ebay, Craigslist or local paper? Just to get you current on your bills. Old clothes, appliances, shoes...anything to get you current on expenses.

 

[footballmouse]

^Not really. When we moved 2 yrs ago, I got rid of a lot of stuff and we haven't accumulated anything major since then. Thanks for the suggestion though.

 

[Marionnette]

First off all, I'm NOT going on a trip to Disney, that was from 3 yrs ago. We don't eat out and I have a basic cell phone and my kids do not have phones. I do cut costs as much as I can. Once my 2nd job starts next month then I will be able to make the current car payment and the mortgage without any problems. I just don't want that length of loan anymore. I'm not thrilled with the Malibu, it wasn't my first choice but like I said earlier, I had to find a car that night. I was finding the Altima, Escape and Camry are a decent price for a used from a private dealer. I'm just nervous getting an older car w/higher mileage.

I think that it would be foolhardy to trade in a working vehicle in order to purchase an older car with high mileage if you will be able to easily afford your current payments in another month. More so since you will need reliable transportation to get between your two jobs. How much shorter would you expect the loan to be on a beater if you are also looking to lower the monthly payments? Chances are very good that the money you don't put toward those payments will end up being put toward maintenance on an older car.

 

[Gumbo4x4]

First off all, I'm NOT going on a trip to Disney, that was from 3 yrs ago. We don't eat out and I have a basic cell phone and my kids do not have phones. I do cut costs as much as I can. Once my 2nd job starts next month then I will be able to make the current car payment and the mortgage without any problems. I just don't want that length of loan anymore. I'm not thrilled with the Malibu, it wasn't my first choice but like I said earlier, I had to find a car that night. I was finding the Altima, Escape and Camry are a decent price for a used from a private dealer. I'm just nervous getting an older car w/higher mileage.

Grin & bear it until your 2nd job kicks in. Then go to the bank & see if you can refinance the car for a better rate & shorter duration.