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Hello all. So recently life threw a curve ball at myself and my fiance. She just lost her job and has possibly been denied unemployment insurance by her ex-employer. Back in August of last year we purchase a new civic. Payed $5000 down and today we owe about $14500. This is the second car we have. The other is a 2001 prism. I'm worried that selling the new car may cripple myself on getting back and forth to my work if the prism ever breaks down. We have a tiny bit of cash saved up, roughly $2000 for rainy days. But I know this will not last long. I can afford rent and some of the bills on my own, however, the car loan payment will possibly be too much to handle. My fiance has picked up housecleaning on the side for cash, but it only adds around $300 a month. So, do I just continue on my path of oblivion in hopes she will land a job soon, and I mean SOON, or cut my losses and sell the civic? Looking at it from a bills perspective, its wise to cut out as much luxery as possible, but I don't know if I will be setting myself up for future problems I.e. old car breaking down. So thoughts? Please.
I don't know much about your car, but I did look up Blue Book and you are about there, so there is not much equity.
I'd go for it. I'd keep the car, dig in hard by eating beans and holding hands for entertainment, driving only when I had to. Stretch the money out as far as I could, and when/if I had to start missing payments I would find a place to hide the car until I could catch up. What you are hoping for is that your girlfriends business will increase, she'll land a job, or unemployment will come through. And I think there is a good chance one of those will happen..............
If you are in the panic/depressed/we aren't going to have money to eat stages, I would be looking for A. a crappy part time job for your SO to work at. At minimum wage, I'd be hard pressed to think that she wouldn't be able to pull down more than 300 a month. B. a second part time crappy minimum wage job. That alone would be more than 300 a month.
You gotta do what you gotta do. I've gone to school full time and worked full time. That's just about the equivalent of two full time jobs. It's completely possible to do it, and if I needed to, I would in a heart beat.
Since you have two cars, your fiance could use one to deliver pizzas. Pizza delivery driver is a good part time job when facing sudden financial problems.
The problem with selling the Civic is you may soon need a second vehicle once again. You likely paid around 1,500 in transaction costs for the Civic and would pay at least half that for a second vehicle if you have to ultimately buy a cheaper vehicle. Not to mention the significant depreciation expense in the first year that will be recognized upon a potential sale.
Selling the car now is a terrible decision from a financial perspective. Pay for food first, then rent, then for the car. All other expenses should be eliminated - cable, Internet, phone, etc. if you still can't afford the car, call the bank and ask to modify payments over the short term due to financial hardship. If you still can't afford the car, then unfortunately you likely have no choice but to sell.
She needs to continue fighting for her unemployment benefits. My cousin was fired unjustly from her job. She applied for unemployment and was denied. She filed for a court day in front of a judge. She showed up and plead her case and WON! Keep appealing until they tell her she can't appeal anymore.
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