|
||||||
| Debt Anything to do with debt including debt reduction, debt concerns, debt consolidation and how to get out of debt |
 |
|
|
LinkBack | Thread Tools |
05-01-2011, 06:08 AM
|
|||
|
|||
? wonndering what would be best.
We made a dumb mistake and bought a new buick enclave 2010. At 3,600 miles the motor was bad was fixed under warranty. Buick extended warrenty on those parts for 2 more years (7 years) and dealer gave us free oil changes for 2 years. We have no other debt loan was for 60 months at 0%. We got it in Oct and put nothing down so we are upside down in the vehicle. I have lost ALL faith in GM. So do we just finish out loan or dump it now (dont know how to go about selling with out totally owning) Any suggestions?
|
|
05-01-2011, 08:28 AM
|
||||
|
||||
|
Why do you want to sell? Are you having any other problems with the car at this point?
How far upside down are you? Do you have sufficient savings to make up the difference if you were to sell today? It is tough to say if you should sell without knowing more details of your situation. You can sell a car that you owe money on. That's not an issue. Whether or not that is the right thing to do here, I don't know.
__________________
Steve * Despite the high cost of living, it remains very popular. * Why should I pay for my daughter's education when she already knows everything? * There are no shortcuts to anywhere worth going.
|
|
05-01-2011, 09:37 AM
|
||||
|
||||
|
Steves adice applies if you are comfortable with carrying debt. I personally would sell the vehicle if I could not pay it off within two years.
This is based on my personal desire to live as debtfree as possible. I would rather pay cash for a clunker and save to move up, than just carry longterm debt. It is a lifestyle choice that promotes my wealth building. From your post, I can only see that your question is whether to keep a GM car or not, and not one based on any financial reasoning. My suggestion is based solely on financial principles. As for whether to keep a GM auto, I would not have bought it based on my free market principles(which do not apply to this thread), but as for GM's quality of product, I would trust it the same as any other.
__________________
Marcus Tullius Cicero: The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.
|
|
05-01-2011, 10:07 AM
|
|||
|
|||
|
Let's break this down to basic financial principles.
How much do you owe on the car? How much is your payment per month? How much is your take home pay? You must look at these numbers. If you can pay off the car in 20 months of less, I would keep it. If you cannot pay it off in that time frame, sell it as soon as you can. Also, your minimum car payment should be no more than 10% of your take home pay. The value of your car should be no more than 30% of your annual income. These are general suggestions that will tell you whether or not you're overextending yourself. You said your underwater with your car? By how much. If you choose to sell, you're going to want to get overwater as soon as possible, sell, and then get a inexpensive car for either cash or a loan that can be taken out quickly.
|
|
| Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
| Thread Tools | |
|
|
