Car Debt

[EconoMutt]

We have been paying off all of our debts.
We're down to our last debt, the car.
My question is, should we keep our car and try to pay it off quickly (1 year)
or should we sell it and take the money and buy a beater?
What would Dave Ramsey adise?

Thanks

Details:
Car is worth approximately $12,000
We owe $6000.
Loan is at 3.25%

[creditcardfree]

I think Dave Ramsey would say in your situation, because it is your only debt, to pay it off quickly and one year would be acceptable.

He often tells people to buy a beater car when their car debt and other debt is quite large. It is a way to get out of the monthly car payment while paying off other debt.

We just paid off our van and it feels very good to drive a paid for car.

[disneysteve]

I agree with ccf. No reason to sell the car in your situation. Pay it off and keep it for a nice long time while you save up cash for the next one.

[bjl584]

It's hard to make a recommendation being that I don't know the details on the car. But, I would think that paying it off and keeping it would make more sense. There is more to a car than just the financial part. I'm going to guess that you have a fairly newer reliable car. You could sell it and get a beater, but then you would be spending considerable time and money having it constantly repaired. There is something to be said for the peace of mind of having something reliable that still has a lot of life left in it.

[EconoMutt]

Thanks everyone.

Keeping the car was my gut feeling.

I'll still be debt free by year's end.

[Bastille]

That's really good Eco. And if you don't want to sell your car so don't sell it.