Car Question

[skives]

My fiance has a 2003 Jeep Liberty Sport which gets 15-20mpg but usually the low end. She has a loan with $4,450.37 at 6.84%. We would really like to get her into a gas saving vehicle. What are your opinions on what we should do?

[disneysteve]

How much is the Jeep worth today? If she could at least break even, sell it and use that money to get something more fuel efficient. I don't know her whole financial picture but I'd suggest not taking on more debt just to get a more fuel efficient car. The savings on gas would likely be erased by the interest on the debt.

[skives]

It's worth anywhere from $5,930-$7,455

[jerrycates]

Try asking a financial analyst if you really want to be sure of your next move. Decisions that has to do with money (even the littlest) need some thorough thinking.

[bjl584]

My fiance has a 2003 Jeep Liberty Sport which gets 15-20mpg but usually the low end. She has a loan with $4,450.37 at 6.84%. We would really like to get her into a gas saving vehicle. What are your opinions on what we should do?

Well, you aren't upside down on the loan, so you could trade it in on something a little more friendly at the pump.

How much doesn she spend a month on gas? Is it significantly more than the amount of the car payment? If it isn't then you may want to just pay off the note and keep the vehicle.

[skives]

She spends anywhere from $160-$200 a month on gas.

[SteveBlissLaw]

Mitsubishi Lancers are excellent on gas, cheap, and run forever.

[clintdavis]

It's hard to say exactly what you should do without knowing your full financial picture. Ultimately, I would be looking to save up a few thousand dollars and then sell the car. You will usually get more by selling to a private buyer than trading in. Then, take the money you saved plus the equity from the car and buy something a bit more fuel efficient.

If you want help getting your full financial plan mapped out, let me know!

Thanks for sharing!

[maat55]

Personally, I would pay it off as quickly as possible, save a while(year or two), then pay cash for another car. My guess is that if you trade it in, it will cost you more than the gas.

[couchrobt]

Having a car is very convenient to those people who comes and goes everyday especially when you work in the city and live in the suburbs. Take time to think however.