which car to get rid off?

[abolanwoski]

We recently moved and are using public transportation and walking a lot more due to our new location. We used to need 3 cars (one each for DH and I to commute and then one for our AuPair to get the kids to school and activities) Now I'm not working, DH is taking bus/metro and the kids will be within walking distance to school.

Here's my quandary: We have a newer Fit that we owe money on and pay almost 500 per month on. I would love to get rid of the payment. If it's not upside down, I would probably only get what I owe, so not a big cash influx. We also have an 8 year old minivan that is paid off but pretty rough shape. I'd get a couple thousand for it maybe and not be relieved of any monthly expenses. Our third car is also paid off, in decent shape and a little newer than the van.

I'd like to sell the Fit but I fear getting rid of it and then the minivan having issues and needing to buy a new car anyway.

Help me decide what makes the most sense financially.

ETA: all three cars are hondas and maintained, the minivan is not YET giving me any trouble, I'm just worried about it due to age. Not sure if gas milage is a factor in my mind, since we are rarely driving any of them right now.

 

[pryncess527]

I'd get rid of the car with the worst gas mileage.

If they are all roughly equal, then I'd probably sell the mini-van that is in pretty rough shape and throw all the money from the sale at the loan on the Fit, then depending on how much that is possibly re-fi the car loan (my bank usually offers no cost refis on car loans, I would only take that route if there were no closing cost fees and the re-fi was just about readjusting the payment)

 

[FrugalFashionista]

I'd get rid of the car with the worst gas mileage.

If they are all roughly equal, then I'd probably sell the mini-van that is in pretty rough shape and throw all the money from the sale at the loan on the Fit, then depending on how much that is possibly re-fi the car loan (my bank usually offers no cost refis on car loans, I would only take that route if there were no closing cost fees and the re-fi was just about readjusting the payment)

Agreed

 

[Happyjen27]

I'd get rid of the car with the worst gas mileage.

If they are all roughly equal, then I'd probably sell the mini-van that is in pretty rough shape and throw all the money from the sale at the loan on the Fit, then depending on how much that is possibly re-fi the car loan (my bank usually offers no cost refis on car loans, I would only take that route if there were no closing cost fees and the re-fi was just about readjusting the payment)

Me three!!

In this case, I would keep the cars that would give me the fewest headaches. Sounds like the Van is a headache in the making. Once you get rid of the van, you may find in a year you can get rid of another car too and be a one car family.

 

[CluelessDisFan]

Sounds like you could get rid of 2 cars. I'd ditch the mini van and the fit.

 

[Rose23]

I'd get rid of the car with the worst gas mileage.

If they are all roughly equal, then I'd probably sell the mini-van that is in pretty rough shape and throw all the money from the sale at the loan on the Fit, then depending on how much that is possibly re-fi the car loan (my bank usually offers no cost refis on car loans, I would only take that route if there were no closing cost fees and the re-fi was just about readjusting the payment)

Well said.

The Honda will last you for years if kept maintained. Utilized the money from sale of the van to invest in the Fit and keep your services up.

Best wishes on your decision.

 

[Gr8t Fan]

If the Fit is large enough to seat everyone in your family, I'd get rid of the van that's giving you trouble (and look into getting rid of the other van in the future) and concentrate on getting the Fit paid off and keeping up the maintenance on it. Properly maintained, Hondas can last a LONG, LONG time.

We have 3 Hondas in our family -- a 1993 Accord, a 1996 Accord and a 2002 Odyssey, and they just keep going and going and going. We really stay on top of maintenance for all of them, but especially the 2002 Odyssey.

 

[tvguy]

If the issue is financial, dump the Fit. The savings on insurance and payments will more than offset any repairs and extra gas used for the minivan.

 

[wysteria]

I would probably dump the mini van and the fit and get another car with a payment less than $500

$500 seems a lot for a car payment? Maybe I am just too cheap to pay that much per month.

 

[scrapquitler]

We recently moved and are using public transportation and walking a lot more due to our new location. We used to need 3 cars (one each for DH and I to commute and then one for our AuPair to get the kids to school and activities) Now I'm not working, DH is taking bus/metro and the kids will be within walking distance to school.

Here's my quandary: We have a newer Fit that we owe money on and pay almost 500 per month on. I would love to get rid of the payment. If it's not upside down, I would probably only get what I owe, so not a big cash influx. We also have an 8 year old minivan that is paid off but pretty rough shape. I'd get a couple thousand for it maybe and not be relieved of any monthly expenses. Our third car is also paid off, in decent shape and a little newer than the van.

I'd like to sell the Fit but I fear getting rid of it and then the minivan having issues and needing to buy a new car anyway.

Help me decide what makes the most sense financially.

I would do what a previous poster suggested: ditch the van and throw all the money from the sale of that onto the car loan for the Fit. Refinance it if possible after that. No way would I keep the van and get rid of the Fit for fear of the van needing major work and needing to replace it soon.

 

[BCmomma]

For me I'd sell the van and the 3rd car, then throw all the money from those sales to the Honda Fit loan, hopefully reducing it significantly. $500/month is a high payment for that type of car.

 

[DawnM]

How much time do you have left on the Fit? Did you get a 3 year loan on it? Is that why the payments are so high?

I would get rid of the cars that are higher gas or causing any issues and keep the Fit.

 

[ilovemk76]

If the Fit will fit your family needs for everyday and travel, then I would get rid of the other two. #1 reason is that it is the newest, so it will have the best safety features in an accident.

We know somebody who kept his very old vehicle running. Was in an accident that he sustained life changing injuries. The first responders said if the vehicle was had newer safety features, he would have walked away or had minor injuries.

 

[luvmy3]

Do you still have the au pair that would need to use a car or could you all share just 1? If you can all share, or its just you and dh now, I'd only keep the fit. If you need 2 vehicles, I'd dump the van.

 

[wiigirl]

If the issue is financial, dump the Fit. The savings on insurance and payments will more than offset any repairs and extra gas used for the minivan.

 

[Sinderelly]

$500 per month for a Fit? Yikes lol I'd get rid of all cars and maybe the au pair too. Plenty of money left in the budget to get a really nice vehicle with a payment lower than $500 monthly.

 

[Disflyer]

I think we need a little more information to fully understand the situation.

How much is left on the payment of the FIT? How many miles are on it? What is your interest rate currently?

Just dumping the Fit may seem logical at first but think about your future value of the vehicle. If it will be paid off reletively soon (less than 3 years) and the mileage may make more sense than ditching it to drive the van to death and need to replace the vehicle in 2 years.

if your interest rate is at or near 0% than use the free money today while you are financially secure and sock away the future benefit after the car is paid off.

My vote is in the long run the fit will better serve your family.

 

[abolanwoski]

How much time do you have left on the Fit? Did you get a 3 year loan on it? Is that why the payments are so high?

I would get rid of the cars that are higher gas or causing any issues and keep the Fit.

Yes, the loan was a 3 year, 1/3 way done.

 

[abolanwoski]

$500 per month for a Fit? Yikes lol I'd get rid of all cars and maybe the au pair too. Plenty of money left in the budget to get a really nice vehicle with a payment lower than $500 monthly.

It doesn't make great financial sense to drag out paying off a cheap car, just to have lower monthly payments, in the end you pay more (due to interest) for the exact same car. As for the Au Pair, she may be on the chopping block too if some work doesn't materialize soon, but right now I need her to so I can do temp work and travel to interview.

BUT I don't need 3 cars.

 

[abolanwoski]

I think we need a little more information to fully understand the situation.

How much is left on the payment of the FIT? How many miles are on it? What is your interest rate currently?

Just dumping the Fit may seem logical at first but think about your future value of the vehicle. If it will be paid off reletively soon (less than 3 years) and the mileage may make more sense than ditching it to drive the van to death and need to replace the vehicle in 2 years.

if your interest rate is at or near 0% than use the free money today while you are financially secure and sock away the future benefit after the car is paid off.

My vote is in the long run the fit will better serve your family.

THe fit has 26 months left and has 5800 miles. interest is 1.8%