Car situation, advice needed.

**JoshuaHeckathorn** · 11-04-2010, 08:39 AM

I would sell it yourself, pay off the loan, buy something used in cash, and call it a lesson learned. You'll save a TON of money in your lifetime if you buy used, in cash, and then drive your car into the ground.

**wincrasher** · 11-04-2010, 08:40 AM

Actually it's a 2 year old truck (as the '11s are out now). I think you may be optimistic on what you think you can get for it.

I think that if you believe that it will be reliable - you should have a feeling for that by now - you should just suck it up and keep it. Make a plan to drive it for 10 years. If you can get 200,000 miles out of it, then you've probably wrung all the value possible out of it.

Hopefully gas doesn't go way up again for awhile. Buying such a gas guzzler, especially a $35k one doesn't make alot of financial sense these days.

You are in neck deep, so it's a tough choice. Yes you could sell it for a loss, and buy a cheap car that will also cost money to keep it on the road. Short term, you may have some savings on cash flow. Long term, if what you have is reliable, may be a better proposition.

**atx** · 11-04-2010, 09:03 AM

thanks for the response, im sure i can get $25k for it, since its been offered by a dealership - and not contingent on buying a car from them.

I know these trucks are reliable, and certain it would last to 200k with the maintenance and care that i maintain my vehicles at.

Im almost done with school -2 months left, and was thinking of going to law school (still have to pass the LSAT though), so then thats another 3 years left of school, and having the truck would make my monthly budget very tight for the next 3 years, i was hoping to have the "freedom and peace of mind" by having a car that was paid off and no monthly payments to endure while in school, to allow me to focus and concentrate in school.

**nick__45** · 11-04-2010, 09:25 AM

Why don't you just drive it until the wheels fall off so you'll never feel the need for another new car ever again until you retire. If you buy a used car (which I am a big proponent of) you may not get the reliability of the one you have.

However, if you definitely sure you can get 25k for it and the new car want is gone, I would sell it and get a 4k Crown Vic or some used Ford truck. Budget a few thousands for potential repair and be prepare to not get as much date in the future.

I made a same mistake with a new car when I got out of school. I am driving that mistake still and that's 9 years already. I'll keep it for another 20 years minimum.

**littleroc02us** · 11-04-2010, 09:49 AM

Go to KKB (kelly blue book) and get a private sale estimate for the truck. Yes you made a mistake in buying the vehicle, but you should be able to sell the truck and pay cash for a used car. The best part about owning a used car outright is two fold. You don't make monthly payments and the money that you would have spent can be saved and invested. Lastly, make sure you have a car repair fund. There's always a need to plan for cars whether they are new or used. Cars break down or need tuneups occasionally. Also, with a new truck like that, have you noticed that everything just seems to cost more?

**cypher1** · 11-04-2010, 10:00 AM

If you love the vehicle and can afford the payments, who's to argue about keeping? But on the flip side, if you're like me, I hate car payments (love cars), and investing money into a depreciating item. If you sell, get back 7k or more, pay cash for another vehicle, that will still give you more options for investing or diversifying your newly freed money down the road.

**nick__45** · 11-04-2010, 10:02 AM

Originally posted by cypher1 View Post

If you love the vehicle and can afford the payments, who's to argue about keeping? But on the flip side, if you're like me, I hate car payments (love cars), and investing money into a depreciating item. If you sell, get back 7k or more, pay cash for another vehicle, that will still give you more options for investing or diversifying your newly freed money down the road.

I love car too, just not new even if they're free. The property tax, insurance, and headache associating with owning something new.

**disneysteve** · 11-04-2010, 11:01 AM

Originally posted by atx View Post

im sure i can get $25k for it, since its been offered by a dealership

If a dealer will give you 25K, a private buyer will give you even more. Remember, the dealer is buying just to turn around and resell at a profit. If you only owe 18K, you are in great shape. List the car on Craigslist for 27K or so, maybe sell it for 26K. Take the 8K you clear and you can get a very nice used car for 8K and be free of payments. Either that or you can use the 8K as a down payment on a slightly more costly truck but not an insanely expensive $37,000 one. The rule of thumb is that you shouldn't buy anything that you need to finance for more than 36 months and your monthly payment shouldn't exceed 10% of your take home pay. If you aren't meeting those guidelines, you are spending too much.

**atx** · 11-04-2010, 04:42 PM

Originally posted by JoshuaHeckathorn View Post

I would sell it yourself, pay off the loan, buy something used in cash, and call it a lesson learned. You'll save a TON of money in your lifetime if you buy used, in cash, and then drive your car into the ground.

I've tried selling it myself, and the tax savings in the trade in are the deciding factor for me. Plus its a BIG HASSLE selling a vehicle on your own.

Yeah, before buying this truck i had a paid off wrangler, and i remember being the super happy then without no payments.

I've definately learned my lesson, and i wont do it again.

I'm going to wait and search for my next vehicle and i'll make sure I pay for it cash this time.

**maat55** · 11-04-2010, 06:28 PM

As Steve has mentioned, I would sell it on Craigslist. The dealer is not going to give you nowhere near private sale value.

There is no better feeling than paying cash for cars and having no payments. Put the payment into a car fund for your next car.

**wincrasher** · 11-04-2010, 06:33 PM

How do you sell a car if there is still a loan on it? You don't have a clear title to sign over?

I guess if it's a local bank, you could just take the buyer to the bank, but what if it's GMAC or something?

**maat55** · 11-04-2010, 06:40 PM

Originally posted by wincrasher View Post

How do you sell a car if there is still a loan on it? You don't have a clear title to sign over?

I guess if it's a local bank, you could just take the buyer to the bank, but what if it's GMAC or something?

I've never sold a car with a balance, but I would call the lender and get answers. I would do as you have mentioned and meet at the local bank if applicable.

**briandownie** · 11-04-2010, 07:47 PM

I'm in Canada so it may be a little different here but you can't sell the car until the lean is removed. That means unless you have the cash to pay if off you need to make the sale and the loan repayment happen simultaneously. Check with the lender to find out the best way to make that happen.

I for one would keep the truck, but then again I love cars.

It will last you a long time and you'll always enjoy it. If you still have warranty that alone can save you money. If the truck has performed well for you it likely will continue to do so, if you've had trouble with it get rid of it but it sounds like you like the truck. You never know what you'll end up with when you buy the next car, new or used for that matter.

Personal loans are open ended, try making a little extra payment to pay it off faster to save on interest charges.

I have bought many cars and trucks in my life both new and used. I know you said you would buy a used car for cash, which in my opinion is the only way to buy a used car, but I wanted to make this point anyway. If the dealership offers low interest rates as an incentive to buy a new car you can often spend less monthly on a new car than it costs for a used car, even a far less expensive one, simply because bank loan rates are outrageous.

Brian

**littleroc02us** · 11-05-2010, 05:32 AM

When you sell the truck privately, have the buyer come with you to the bank to give them the cash to pay off the loan and then they will hand over the title.

Car situation, advice needed.