Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Had 2 used cars at $500 a month total. Paid one off, down to $250 payment for 2 cars. Bought wife a CPO suv for better safety on her commute ($300 month) for total of $550 payments. Selling the car I paid off getting about $4,000 of equity back after covering the loan.
Now, I'd like to get rid of the other car payment so our total payment would just be $300 a month from her SUV and apply the savings to my student loans. Its a 2011 Sonota limited, nice car. Could probably get around $7,500 for it, owe $6,500 on it at 2.9%. I could either:
A) Sell it, and buy a cheaper junkier car (this would tie up $6,500 as I'd pay off the loan to get the title in order to sell) Plus I'd have to be looking at a real junker like $3,000 to make it worth it IMO.
B) Pay it off, which isn't really an option as I have a student loan at 6.5% where the $6,500 would be better applied
C) Refinance it back to 5 year, drive it into the ground and apply the $150 savings each month to the 6.5% student loan.
D) Don't even bother thinking about it, just keep paying the $250 till the loan is paid off in like 2 years, there's not enough savings between the 2.9% and 6.5% to make it worth it right now.
I'm kinda leaning toward the refinance idea. My student loans are auto withdraw every month, so I'd just up it by $150, wouldn't even have to think about it. And I doubt the car is going to depreciate much more to the point where I'd have to worry about finding myself upside down in the loan.
Had 2 used cars at $500 a month total. Paid one off, down to $250 payment for 2 cars. Bought wife a CPO suv for better safety on her commute ($300 month) for total of $550 payments. Selling the car I paid off getting about $4,000 of equity back after covering the loan.
Now, I'd like to get rid of the other car payment so our total payment would just be $300 a month from her SUV and apply the savings to my student loans. Its a 2011 Sonota limited, nice car. Could probably get around $7,500 for it, owe $6,500 on it at 2.9%. I could either:
A) Sell it, and buy a cheaper junkier car (this would tie up $6,500 as I'd pay off the loan to get the title in order to sell) Plus I'd have to be looking at a real junker like $3,000 to make it worth it IMO.
B) Pay it off, which isn't really an option as I have a student loan at 6.5% where the $6,500 would be better applied
C) Refinance it back to 5 year, drive it into the ground and apply the $150 savings each month to the 6.5% student loan.
D) Don't even bother thinking about it, just keep paying the $250 till the loan is paid off in like 2 years, there's not enough savings between the 2.9% and 6.5% to make it worth it right now.
I'm kinda leaning toward the refinance idea. My student loans are auto withdraw every month, so I'd just up it by $150, wouldn't even have to think about it. And I doubt the car is going to depreciate much more to the point where I'd have to worry about finding myself upside down in the loan.
Would it not be simpler to just sell the Sonata and keep the car you paid off since you already own it and know of any maintenance issues it may or may not have?
Would it not be simpler to just sell the Sonata and keep the car you paid off since you already own it and know of any maintenance issues it may or may not have?
Kinda the same thing with just paying off the Sonata. I paid off that car with a lump sum 2 years early to get the title to sell it. I need to sell to get my money back and I have about $4,000 in equity tied up in the car. Plus its just a boring base model.. no desire to keep it at all. I'd rather get an old MR2 or something for $2,000 and get all my money back and do something useful with the funds rather then continue to drive it and have all those funds locked into it.
Had 2 used cars at $500 a month total. Paid one off, down to $250 payment for 2 cars. Bought wife a CPO suv for better safety on her commute ($300 month) for total of $550 payments. Selling the car I paid off getting about $4,000 of equity back after covering the loan.
Now, I'd like to get rid of the other car payment so our total payment would just be $300 a month from her SUV and apply the savings to my student loans. Its a 2011 Sonota limited, nice car. Could probably get around $7,500 for it, owe $6,500 on it at 2.9%. I could either:
A) Sell it, and buy a cheaper junkier car (this would tie up $6,500 as I'd pay off the loan to get the title in order to sell) Plus I'd have to be looking at a real junker like $3,000 to make it worth it IMO.
B) Pay it off, which isn't really an option as I have a student loan at 6.5% where the $6,500 would be better applied
C) Refinance it back to 5 year, drive it into the ground and apply the $150 savings each month to the 6.5% student loan.
D) Don't even bother thinking about it, just keep paying the $250 till the loan is paid off in like 2 years, there's not enough savings between the 2.9% and 6.5% to make it worth it right now.
I'm kinda leaning toward the refinance idea. My student loans are auto withdraw every month, so I'd just up it by $150, wouldn't even have to think about it. And I doubt the car is going to depreciate much more to the point where I'd have to worry about finding myself upside down in the loan.
I say don't bother, just try to find any extra you can to throw at the student loans. A $7500 vehicle is usually not worth selling unless you don't need as many total vehicles as you will have after the first sale. It would be a different story if it were $17,500 instead of $7,500.
I say don't bother, just try to find any extra you can to throw at the student loans. A $7500 vehicle is usually not worth selling unless you don't need as many total vehicles as you will have after the first sale. It would be a different story if it were $17,500 instead of $7,500.
That's kinda the whole thing.. If I do sell it for $7,500 and get the $1,000 in equity back I'd have to find a car for like $4,500 that is just as dependable and comfortable to drive to make it worth it. I'm at a point in my life where I don't really care what people think, I'd rather put as much money toward debt and retirement now while I'm young, I don't mind driving a bit of a beater.. but just not sure if its even worth bothering with the headache unless a really great deal comes along.. like a friend of a friend just wants to get rid of their dead grandmom's 2010 lexus with 10,000 miles on it for $5k. (saw something like that happen once first hand when I was younger)
Keep the car for another 10 years. Stop borrowing to buy cars. Pay off the student loan when you can.
Agreed. All the other options you've posted work in the short term to more or less of a degree, but in the long run, this is the best advice.
The comment about it being a "boring base model" says your expectations are out of whack. A Boring Base Model is what you can afford if you have other debt and can't pay cash.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
