What now?

[riverwed070707]

Things were going well -- DH got a job, I got a second job, budget was back on track, we were scheduled to have our debt paid off by December...and this morning DH wrecked his car. Chances are it's totaled but we're waiting for confirmation on that.

If its not totaled, I have no clue where the $1k collision deductible (not to mention his $200 ticket!) is going to come from. My 0% card with $3800 balance HAS to be paid by December. I put us on a payment plan for DHs tuition and owe $750 for the next 2 months on that plus come December, we will have to pay $2k for DDs second semester of school and DH will have more tuition due (although for this I could put us on a payment plan again). There's next to nothing in savings.

If it is totaled, we still need a reliable car with reasonable gas mileage. DH drives 200+ miles/week -- and that's going to double next year -- and we need the gas savigns. We're already working on a modified budget due to him being in school FT and I really feel like the world just came crashing down. We will get money for the car but we still owe $2500 on it, plus the deductible will come out of the money we're getting. At best, we'll walk away with $3k after those two things are taken care of. After we purchased this car (LAST YEAR) I vowed to never take out another loan on a car again -- but I feel like there's no other option. If we bought a beater with the $3k, it's a) not going to get decent mileage which will be a budget buster with how far he drives and b) going to need to be replaced before he starts commuting 50 minutes away next year. Is it better to have a car for 8-10 months or take out a small loan now and get what we need knowing we can pay it off quickly once everything else is out of the way?

In short, money situation looks like this:

Income: $2,800 (excluding money from our second jobs -- best guess tells me this will come out to be around $1500 but IDK we've both only been at them for a couple weeks and both are tip-based)

Giant upcoming expenses: $1k collision deductible, $200 traffic ticket, $3800 CC paid in full by December, $1,500 tuition for DH due by Nov., $2500 Spring tuition due in December, and $2k DD tuition due in December. The debts outweigh our income without even adding in our regular bills and expenses!!

[MonkeyMama]

I had 2 thoughts reading your post:

1 - Can't DD be responsible to pay for the $2,000 tuition?

2 - I don't understand why a beater won't get decent gas mileage? & why it needs to be replaced for longer commutes? What kind of gas mileage do you want?

I've personally driven some really low cost vehicles (for a LONG time, many miles, etc.). So, though it SUCKS - I grant you that - I don't see the need to panic. There are cars out there that you can afford to pay cash for, that will get you through. Just take a deep breath.

I'd also have a talk with DD about apparently you wanted to help more, but are not able to do so at this time. She's got 3 months to earn $2,000. That doesn't seem that difficult a situation to me. For one, there are a lot of seasonal jobs just becoming available for the holidays.

[photo]

Is your husband all right after the accident?

[Redraidernurse]

How old is DD? Is this a college education we are talking about? If she has to take on a part time job or delay college for a semester to work full time it may be your only option.

[DebbieL]

I think OP is only in their 20s, so the daughter would be in elementary school or preschool I'm guessing. I think OP said in another thread they are 41 years away from retirement age, so I'm assuming that means 24 years old.

For OP: Is it absolutely necessary to send the child to an expensive school?

[riverwed070707]

Originally Posted by MonkeyMama

I had 2 thoughts reading your post:

1 - Can't DD be responsible to pay for the $2,000 tuition?

2 - I don't understand why a beater won't get decent gas mileage? & why it needs to be replaced for longer commutes? What kind of gas mileage do you want?

I've personally driven some really low cost vehicles (for a LONG time, many miles, etc.). So, though it SUCKS - I grant you that - I don't see the need to panic. There are cars out there that you can afford to pay cash for, that will get you through. Just take a deep breath.

I'd also have a talk with DD about apparently you wanted to help more, but are not able to do so at this time. She's got 3 months to earn $2,000. That doesn't seem that difficult a situation to me. For one, there are a lot of seasonal jobs just becoming available for the holidays.

As others have noted, DD is 3... so no, paying for her own school is not an option.

Regarding the car, we are looking at beater options, but we live in the midwest and winters are brutal here -- DH is going to be driving 100 miles a day on the interstate in snow and ice so it has to be something with good control and a reasonable repair history. I've broken down here in January and it's not something I'd wish on my worst enemy.

Originally Posted by photo

Is your husband all right after the accident?

He is OK as in no broken bones, no blood; however, he has suffered with back pain since his late teens and had back surgery about 10 years ago. We're nervous about how the after effects might affect his back but at this point he's just feeling sore. Strangely enough, he was only going 15-20 mph but he hit a huge SUV and the little civic just didn't stand up to it very well

Originally Posted by Redraidernurse

How old is DD? Is this a college education we are talking about? If she has to take on a part time job or delay college for a semester to work full time it may be your only option.

Originally Posted by DebbieL

I think OP is only in their 20s, so the daughter would be in elementary school or preschool I'm guessing. I think OP said in another thread they are 41 years away from retirement age, so I'm assuming that means 24 years old.

For OP: Is it absolutely necessary to send the child to an expensive school?

Truthfully, it's not an expensive school. It is a private school, and it gets expensive at the elementary/high school level but $5k for preschool is cheaper than any daycare in my area and she gets far more out of it. Additionally, even if there were a free option, we're under contract for the remainder of the school year so we'd owe that money whether we pulled her or not.

[bjl584]

Looks like you might have to increase your income over the next 6 months or so. Is there anything laying around that can be sold? Or even better, is a part time job for you or your husband possible?

[MonkeyMama]

Originally Posted by riverwed070707

As others have noted, DD is 3... so no, paying for her own school is not an option.

Regarding the car, we are looking at beater options, but we live in the midwest and winters are brutal here -- DH is going to be driving 100 miles a day on the interstate in snow and ice so it has to be something with good control and a reasonable repair history. I've broken down here in January and it's not something I'd wish on my worst enemy.

So you buy a beater that is in good repair and isn't going to break down. I still think there are plenty of options if you look. I've driven some old cars and never had a break down.

Only other options are to cut expenses and increase income - agreed with bjl584.

Good Luck.

[riverwed070707]

Originally Posted by bjl584

Looks like you might have to increase your income over the next 6 months or so. Is there anything laying around that can be sold? Or even better, is a part time job for you or your husband possible?

We both just picked up second jobs earlier this month. I'm working 65+ hours a week and he's workig every shift he isn't in school. No there is no time for more work. My toddler used to be the most independent, well adjusted kid I knew and now she cries every time I leave for work at 8 p.m. because she knows she isn't going to see me until dinner time the next day. It's depressing, more so becuase I really felt like I was doing everything right to get us back on track.

Nothing to be sold -- I live in a 600 sq ft house...we are pretty minimal to begin with.

I just checked our credit scores and what loan rate we'd be eligible for -- scores are the best they've ever been (both around 750!) and we qualified for a 3.4-4.4% auto loan depending on what year we buy. I'm going to find us a car for $8-10k and put $3k down. This will keep our payment near what it is now, just means we have a couple more years before we'll be car payment free (was going to be paid off in January ). We should be fine just coming up with the school payments and deductible if we both keep up our current work schedules. Also just remembered car insurance is due in Nov -- really dreading to see what that's going to be like between the accident and 2 speeding tickets in the last 6 months This has not been a good driving year for us!

I do need to get that cc balance transferred though and I'm on the fence between transfering to another 0% card and taking out SLs for DH next semester so we can pay the card off and just finance his tuition.

This is all less than ideal but I don't see another option right now. After the first of the year, we should be able to start socking away $1k+/month to be better prepared for summer/fall.

[disneysteve]

Originally Posted by MonkeyMama

So you buy a beater that is in good repair and isn't going to break down.

People insist on equating "old" with "unreliable" which isn't true. My car is a 1998 and has nearly 150,000 miles. It works fine. I have no issues taking it on long drives. Our other car is a 2000 and also has about 150,000 miles. Just last month, we took it on a 3,000+ mile road trip to Florida from New Jersey. My car is probably worth no more than about $3,000 and anybody who bought it today would be getting a darn good car that still has a few good years left at least.

[riverwed070707]

Originally Posted by disneysteve

People insist on equating "old" with "unreliable" which isn't true. My car is a 1998 and has nearly 150,000 miles. It works fine. I have no issues taking it on long drives. Our other car is a 2000 and also has about 150,000 miles. Just last month, we took it on a 3,000+ mile road trip to Florida from New Jersey. My car is probably worth no more than about $3,000 and anybody who bought it today would be getting a darn good car that still has a few good years left at least.

Says the guy who would never buy from a private seller...

Your car has been great for you and may have a few years left in it, but would you buy one in its current condition? If so, where would you get it? Yours is certainly an exception because you've owned it a long time and taken good care of it -- most that come on the market at that age and mileage have been through the ringer. Of course there are exceptions, but that's not the norm. By that age, you don't know it's history, you don't know how well it's been maintained, and you don't know who was driving it and how hard they were on it. I'm not a car snob and I don't need the newest and the best. I've had my fair share of beaters (3 to be exact in my 10 years of driving) and not one lasted me more than 18-24 months with a modest amount of driving. You can't buy that kind of car from a dealer with a carfax because when they get them in, they ship them out.

Like I said, I'm keeping an eye out but it's a rare find. Bottom line is buying a car that used is a risk, and one I don't feel I can afford to take right now. What happens if we buy a $3k car and it dies in 3 months...where are we going to get $3k for a new one?

[disneysteve]

Originally Posted by riverwed070707

Says the guy who would never buy from a private seller...

Your car has been great for you and may have a few years left in it, but would you buy one in its current condition? If so, where would you get it?

If I was in a financial situation that demanded it, yes, I'd buy something like my car. Where? Probably from some used car lot. I'm not personally comfortable dealing with private sellers but that's just me. I know people do it every day without any issues. It is just outside of my comfort zone though I've got some friends who would be happy to come along to help me out so I wouldn't rule out the private seller deals.

[bjl584]

Originally Posted by riverwed070707

Says the guy who would never buy from a private seller...

Your car has been great for you and may have a few years left in it, but would you buy one in its current condition? If so, where would you get it? Yours is certainly an exception because you've owned it a long time and taken good care of it -- most that come on the market at that age and mileage have been through the ringer. Of course there are exceptions, but that's not the norm. By that age, you don't know it's history, you don't know how well it's been maintained, and you don't know who was driving it and how hard they were on it. I'm not a car snob and I don't need the newest and the best. I've had my fair share of beaters (3 to be exact in my 10 years of driving) and not one lasted me more than 18-24 months with a modest amount of driving. You can't buy that kind of car from a dealer with a carfax because when they get them in, they ship them out.

Like I said, I'm keeping an eye out but it's a rare find. Bottom line is buying a car that used is a risk, and one I don't feel I can afford to take right now. What happens if we buy a $3k car and it dies in 3 months...where are we going to get $3k for a new one?

Buying a 12 year old car with 150,000 miles on it is a bit extreme, and would make me nervous as well, but I'm sure you can find something gently used. Say 3 to 5 years old with 30,000 miles on it. I agree with Steve on buying from the dealership if you go the used route. Mainly because you can get the extended warranty so that in 18 to 24 months you aren't stranded without a car.

[riverwed070707]

Originally Posted by bjl584

Buying a 12 year old car with 150,000 miles on it is a bit extreme, and would make me nervous as well, but I'm sure you can find something gently used. Say 3 to 5 years old with 30,000 miles on it. I agree with Steve on buying from the dealership if you go the used route. Mainly because you can get the extended warranty so that in 18 to 24 months you aren't stranded without a car.

That would be a dream! The used cars I'm looking at (and comfortable with!) are 6-8 years old with up to 100k miles. This puts us right around $8-11k -- with an estimated $3k dp, that's not a huge loan and is manageable with our small budget, I think.

[cypher1]

Originally Posted by disneysteve

People insist on equating "old" with "unreliable" which isn't true. My car is a 1998 and has nearly 150,000 miles. It works fine. I have no issues taking it on long drives. Our other car is a 2000 and also has about 150,000 miles. Just last month, we took it on a 3,000+ mile road trip to Florida from New Jersey. My car is probably worth no more than about $3,000 and anybody who bought it today would be getting a darn good car that still has a few good years left at least.

I can imagine others getting sick of me bringing this up, but I'm a huge advocate of Honda Civics (esp 96-00 6th gen) for compact class. Very fuel efficient (my 97 hatch 36-37mpg with 170k), cheap maintenance/easy repairs, with wide range of parts available. As with DS Camry, and Corolla's for the money, you really can't go wrong. Those are my top 3 for reliability in a used market. I'm not saying a used 3k car is equivalant or better than a 10k car, but as commuter they get the job done.

[disneysteve]

One word of advice from experience - make sure the insurance settlement is correct. After my wife's van was totaled, I carefully reviewed the settlement and found a couple of errors. The model and features they listed weren't accurate. We had options that they hadn't included. I spoke to them and got an extra couple thousand dollars in the deal. Also, don't forget that your auto insurance covers the vehicle but your home insurance covers the contents. If any personal belongings were damaged (CDs, GPS, sunglasses, tools, etc.), you can file a home owner's claim to get reimbursed for that stuff.

[cypher1]

Originally Posted by bjl584

Buying a 12 year old car with 150,000 miles on it is a bit extreme, and would make me nervous as well, but I'm sure you can find something gently used. Say 3 to 5 years old with 30,000 miles on it. I agree with Steve on buying from the dealership if you go the used route. Mainly because you can get the extended warranty so that in 18 to 24 months you aren't stranded without a car.

That is also true for exceptions, and finding owners to really took care of their vehicles for that age.

[riverwed070707]

Originally Posted by cypher1

I can imagine others getting sick of me bringing this up, but I'm a huge advocate of Honda Civics (esp 96-00 6th gen) for compact class. Very fuel efficient (my 97 hatch 36-37mpg with 170k), cheap maintenance/easy repairs, with wide range of parts available. As with DS Camry, and Corolla's for the money, you really can't go wrong. Those are my top 3 for reliability in a used market. I'm not saying a used 3k car is equivalant or better than a 10k car, but as commuter they get the job done.

We've been an all Honda family for a while now. It's hard for us to even consider anything else. Reliability aside, its the brand we know so we know what to look for, what mileage range is reasonable for them, what prices are good and what's not, etc. The car we lost was an 01 Civic. I drive an 06 CRV (paid off! whoo hoo). If DH had his way we'd be going to an Accord because he was feeling a little clausterphobic with the compact but we've been looking at both and some outside the Honda family as well.

Originally Posted by disneysteve

One word of advice from experience - make sure the insurance settlement is correct. After my wife's van was totaled, I carefully reviewed the settlement and found a couple of errors. The model and features they listed weren't accurate. We had options that they hadn't included. I spoke to them and got an extra couple thousand dollars in the deal. Also, don't forget that your auto insurance covers the vehicle but your home insurance covers the contents. If any personal belongings were damaged (CDs, GPS, sunglasses, tools, etc.), you can file a home owner's claim to get reimbursed for that stuff.

Thanks this is good to know. Does anyone know if insurance is supposed to cover the replacement cost of our car seat since it can't be used anymore?

[MonkeyMama]

The thing is, if you drop the love of Toyota and Honda, you will easily find very nice cars in the $5k range (with very low miles).

If you are going to buy a beater beater - I would only buy from friends or relatives. Start asking around. I have owned two cars I paid $1000-ish for and were EXCELLENT - but those were bought from family members. (They had a bajillion miles - but they drove easily for years with no issues).

I won't knock dealers - you will pay more, but you will get a little more recourse in the process (less scam factor). But, you aren't going to get a great deal on a car, and car dealers can be pretty scammy.

Private party - there are tons of cars out there in the $5k range that are in the "older but barely driven" variety. My experience if a car is in pristine condition, it's been kept up pretty good. & these are the cars that are a great deal.

If your budget is $11,000, you can buy a practically new car (barely used, one year old) from dealer on a variety of warrantied vehicles (non-Japanese).

I've bought cars in all of the above manners. Well, my husband's car was one-year-old Ford, GREAT car, the sales price was literally $7888. 10 years later, it holds its own with any Japanese car. We bought it because the model regulary lasts 200k miles no problem. These are cars people don't look at because they aren't warrantied, brand name or cool. We don't spend a lot of money on cars. Just trying to help.

[riverwed070707]

I know I'm defending a topic that will never have a real right an wrong, but you just can't top personal experience. DH and I have driven cars all over the board and the only ones we've not gone wrong with is Honda. Maybe that's luck or coincience, but how do you overlook it? In the 7 years we've been together, we've owned a 91 chevy lumina, a 97 Acclaim, a 97 Saturn SL1 (shortest life of them all at 5 months! oh and it was purchased from a reputalbe dealer), an 02 Ford Taurus, an 05 Chevy Impala, and the hondas. That's a lot of cars to burn through in 7 years and I've had my CR-V for 3 years!

The $150/mo we'd be putting in savings from a car payment isn't going to add up very quickly if big repairs do need to be made on a car right away.

I'm not disputing that there are certainly options for $11k -- and I think this is a great option for us right now!