by "Vimto" (smudgey)
Published 05/07/2017 at 08:41
by "Vimto" (smudgey)
Published 05/07/2017 at 08:41
No Tags
STARS: 2
Hey guys,
Shortly after the diesel manual Jetta TDI fiasco my roommate and I decided we are moving at the end of May because our lease is ending. (We currently live in a 2 bedroom house that’s a 45 min commute for both of us).
Our new humble abode is within walking distance of everything I need, including work and the state college I’m attending, the hospital, and the mall. It’s ideal.
This preamble is setting up the idea that I’m considering selling my car to Carmax when we move. For those unaware my current car is a 2017 Hyundai Elantra which I purchased last November. My greatest motivator for this is that I’ve had a car loan in various forms for over three years now and due to trading here and there my loan balance is virtually the same as it was then.
I want to be done and out of debt and this would be the quickest way. So, the details:
I owe probably around $5k more than the Elantra is worth which I’d have to pay at time of sale, so I’d have to take a small loan from my credit union to pay part of that.
I’ve calculated that between my monthly payment, insurance & gas my car costs me a little over $700/mo. I’d be able to pay off that small loan in ~6 months and then start saving up to pay cash for a car
I’m an Uber driver on the side so my car represents potential income for me, but I have to Uber hundreds of dollars a month just to cover the car and then I’m riding up my gas, maintenance and tax costs.
I have a solid bike & I’m fit, I can easily bike 30+ miles if necessary.
Can’t believe I’m actually considering giving up my car...but I would LOVE to be out of debt. A year from now, I could be loan free and well on my way to paying cash for a fairly cheap car.
"BJ" (benjamin-bignell)
05/07/2017 at 08:45, STARS: 3
Selling your car sounds like a solid plan in this case! You’re probably aware that your loan at the credit union will have a significantly higher interest rate. And depending on how rushed you are to sell the car, maybe you can find a private buyer that will pay better than a dealer?
"Vimto" (smudgey)
05/07/2017 at 08:47, STARS: 0
Yeah, the loan is going be around 9%, but my goal is to get that loan paid off ASAP. Ideally within 6 months.
I would get more going private but I think it would be difficult with my negative equity, being a financed new car etc.
"Flavien Vidal" (flyingfrenchy)
05/07/2017 at 08:48, STARS: 8
I’d indeed sell the Hyundai... Main reason being that it’s a Hyundai, so there’s no reason too keep it :)
But why stay without a car? Get yourself a cheap 1000$ beater to play with... It’s fun.
"Vimto" (smudgey)
05/07/2017 at 08:52, STARS: 0
Haha my plan would be to get a beater once I’ve paid off the small loan. It’s definitely not the Volvo C70 I owned before it but its extremely comfortable and averages 40 MPG all day, it does its job very well
"TorqueToYield" (torquetoyield)
05/07/2017 at 08:55, STARS: 1
Live that Mr Money Mustache life. If you haven’t read his blog it’s pretty interesting. He’s pretty extreme and not everybody could or should do everything he recommends but no debt is a big plus. Get a beater and once your finances are better you could buy a fun car.
"Chuckles" (chucklesw37)
05/07/2017 at 08:58, STARS: 0
Giving up car ownership is a big change for most people. My advice would be to park the car at your new place for a few weeks, and see how life without driving goes before you actually turn in the keys.
Alternatively, since you won’t have to rely on your car regularly, sell it to carmax and buy something cheaper (and/or more fun). It might be useful to keep a $500-$1000 beater around for when you occasionally need a car.
"rillweid - Now with more TRD and less TDI" (rillweid)
05/07/2017 at 09:00, STARS: 1
I think it may make sense to get rid of it. However, as someone who is in a similar position as you right now, minus the car, the lack of freedom do go anywhere that is a significant distance away is very frustrating. I would suggest you have a plan to mitigate that aspect if you do sell.
"E92M3" (E46M3)
05/07/2017 at 09:25, STARS: 0
Do yourself a favor, and go get an offer from Carmax first. That may change your mind or at least your numbers. People have the impression that Carmax gives a fair price, but it’s often $3-4k less than they were expecting. It only takes 15 mins, and there’s zero pressure to act on it.
"TDIGuy" (owenrosier)
05/07/2017 at 09:52, STARS: 0
I like the idea and the nice thing is you won’t have any car payments or anything of that sort in say 6 months but being car-less might be hard for a bit. All depends on where you live really. But I am always one to say minimize debt.
"RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars" (rallydarkstrike)
05/07/2017 at 09:53, STARS: 0
Sad to hear you’re considering selling your car, but I can understand your concerns. If it’s not hard to get your bike license (or if you don’t need one), you could always pick up cheap scooter to get yourself around town longer distances? You could find decent ones for $500-$1000 I would imagine!
"Vicente Esteve" (vicente-esteve)
05/07/2017 at 10:39, STARS: 0
Beater time.
"cluelessk" (cluelessk)
05/07/2017 at 10:50, STARS: 0
Not having a car seems like a real inconvenience. I also grew up in small town were owning car in a necessity if you want a job.
If you’ve got public transit and Uber it might be bearable.
"My bird IS the word" (mybirdistheword)
05/07/2017 at 11:26, STARS: 0
You can always get a cheap motorcycle. I’m one for getting out of debt as soon as possible.
"Master Cylinder" (mastercylinder28)
05/07/2017 at 13:35, STARS: 1
If you don’t need it, get rid of it. It sounds like the car is taking up a significant portion of your budget, and if it’s not a necessity and you don’t value it enough as a toy to keep paying the expenses, lose the debt and save for the future. You can always Uber/Lyft or rent a car when you need to.
Plus, imagine how snobby you can be at parties with your tiny carbon footprint!