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I need another car. The used car I currently own is not very reliable; it's a a rebuilt Dodge Stratus, and so far I've owned the car for a little over a year, and I've had to have: an alternator replaced, a coolant pump replaced that was somehow put in the car in such a way that the timing belt had to be removed, an oil pan that got damaged by just going over a rough pot hole, several tire changes, a tire rod replacement, and there are still things wrong with it. Most of these repairs were pretty expensive. I've probably spent about $2000 on repairs. I thought about putting up with it until I can save enough money to afford a better car, but I wonder if that's ever going to happen. Is this thing really going to keep eating my money? I've looked at several options, which one would you recommend?
Have the car repaired and keep driving it while trying to save money. It works okay, except a bent control arm grinds through the tires every month, and lately I've been running into some unexpected repairs. It costs about $300 per month to drive it, excluding the surprise costly repairs: about $100 per month for gas, about $100 per month for insurance, and about $100 per month in maintenance, usually tire changes.
Trade the car in or sell it to a junk yard and finance a newer vehicle. I'm just worried that this will leave me paying out most of my income. (A car payment would be about $400 or $500 per month, unless I stretch out the payment over five or six years. Full coverage insurance would be around $150. I only make about $2000 per month, and $800 of that goes to general living expenses.) I'm not sure I want to (or even can) do this, although having a good reliable car could also provide me more opportunities to make money as well. (So many things go through my head with this. What if I get in an accident not covered by insurance and end up without a reliable vehicle AND owing payments?)
Look for a cheap used high mileage vehicle on Craigslist and attempt to buy it outright.
Stop using my current car except in emergencies and save the money that would have gone toward a car payment.
It's an icky catch 22; I can't make save much money while I drive that car, but it would be very inconvenient to try to get around without a car. I don't want to ditch this car, because it's paid for, but I'm wondering if it is doing me any good.
Your car is in wear out mode. That means anything can fail at any time. Some repairs can easily cost more than the car is worth.
A better solution is to find a better used car. For example, if you could find a used Corolla or Civic with about 100K miles they would likely be more reliable than your Stratus.
where do you take the car?
how often do you drive it?
Do you need it for work or to get to work, how far is work?
Is there anyone else relying on you for a ride, (kids to school, spouse to work?)
Do you know your credit score/history?
Would you be able to use public transportation, or a bicycle if needed or at all?
Would you have any cash to add to a vehicle?
$400-$500 is high. A $450 payment a month would be for about a $25,000 loan. That's not including insurance (full coverage would be required on any vehicle being financed), but you should easily be able to get a decent car that youre not going to be dumping money in to for half that monthly payment. I wouldn't be surprised if you could find a place that will give a minimum trade-in amount on your stratus, and if you're lucky apply it towards a lease to not worry about any repairs for a while, and help solve this problem then save and decide when youre in a better situation in a couple years.
It's an icky catch 22; I can't make save much money while I drive that car, but it would be very inconvenient to try to get around without a car. I don't want to ditch this car, because it's paid for, but I'm wondering if it is doing me any good.
Really shouldn't buy a new car when you don't have any savings, not even an emergency fund. I say sell it for what you can get and save your $650/month operating cost (prospective $400 payment, $150 insurance, and other costs added) for 3 months, then buy a scooter for cash. $2000/month is a pretty low income to be talking about going into any sort of debt, especially something like a car.
Really shouldn't buy a new car when you don't have any savings, not even an emergency fund. I say sell it for what you can get and save your $650/month operating cost (prospective $400 payment, $150 insurance, and other costs added) for 3 months, then buy a scooter for cash. $2000/month is a pretty low income to be talking about going into any sort of debt, especially something like a car.
Public Transportation
I work as a teacher. There is a bus route to work, but I'm worried that my coworkers, mostly older women, won't understand why I'm electing to ride the bus. They see the area they work in as dangerous and shady. They constantly tell me that the area is not safe, and I don't want them to see me at the bus stop and offer me rides. I also don't want my boss to begin thinking I'm irresponsible for taking the bus. It's the same story with my other job; If I don't bring my car, I will need to be really secretive about it, because my boss may somehow think that I'm irresponsible if people start to offer me rides, even if I don't take them. Schools have to be cautious about their image.
Financing a Car
The $400 per month figure is assuming I pay it off in less than five years, which is what I would want to do. Most of that is interest and closing costs, I think, because the MSRP or some of the cars I've looked at is only about 10-12 thousand dollars. I agree; I think it's practically robbery, and I don't want to get into anything like that. I only have a few credit cards right now, and I opened them so that I could build my credit. It has paid off; my credit is really good, but I don't want to get involved in anything stupid, like a mortgage or car payment, when I'm not making a lot of money. That could bring down my credit score and make it much more difficult to afford big things when I want them.
Both of my bosses were pretty clear about me needing RELIABLE transportation. I'm worried that going car-less won't count. I'm also worried that it will project a negative image and maybe increase the chances of me getting fired.
My other option is to get a used car for lower payments with my good credit, but used cars don't always have the warranties and protections, and sometimes a newer model used car can have the same problems as an older model used car. I've heard of 2013 models tearing up without warning. My fear is I'll end up financing a car that is no better than the one I have now...
Getting a Scooter
I thought about getting a scooter; to be honest, I probably need to. The only problems I might have is anti-theft insurance (or just finding somewhere to store it to avoid getting the insurance) and inclement weather. I also know little about upkeep. I would also need to get a motorcycle license, wouldn't I?
A scooter is not bad or even a smaller motorcycle if you don't need to transport many supplies or other things all the times. You can easily get one for 500-1000, and maybe keep the current car as a backup for when needed or in case. If you are a little mechanically inclined, smaller motorcycles are pretty easy to work on, especially with the online community is extremely helpful. Heck depending on how far your commute is, you could even pick up an electric bike, or bicycle (then you would really have next to zero operating costs). Also you wouldn't have to worry about storing it outdoors either.
Interest and closing costs are very minimal in the overall. I think you're a little too worried about getting a vehicle that has too many problems. Look for something modest, with somewhere around 75-100K miles and it should last quite a while with basic standard maintenance. You should easily be able to get a 5-10 yr old vehicle for $8-$12K, with a $200-$300 a month car payment no problem.
I think you should talk to your bank/credit union, and see what they can do for you. They will probably give you the best rate your gonna get, and certainly better than a dealer. Find out what you can afford, see where your budget falls, and know your numbers. Then you can look around and see what could happen.
Both of my bosses were pretty clear about me needing RELIABLE transportation. I'm worried that going car-less won't count. I'm also worried that it will project a negative image and maybe increase the chances of me getting fired.
I regret to say that you are correct. In my experience most employers do not consider the bus "reliable transportation".
Do you have a church or neighborhood group of friends that you could let them know you're looking for a good used car? I've gotten some good deals that way. I suggest asking at work, but it doesn't sound like you can do that.
Is your mechanic reliable? Do you have a good relationship with him/her? They might be able to work you out a deal on a car, or know someone who can.
also try cargurus.com or autotrader.com. That way you'll find out what's available in your area for used cars.
You need to get that control arm fixed, or get rid of the car. Chewing up a set of tires every month is wasting money you can use to get another car. Good luck.
A scooter is not bad or even a smaller motorcycle if you don't need to transport many supplies or other things all the times. You can easily get one for 500-1000, and maybe keep the current car as a backup for when needed or in case. If you are a little mechanically inclined, smaller motorcycles are pretty easy to work on, especially with the online community is extremely helpful. Heck depending on how far your commute is, you could even pick up an electric bike, or bicycle (then you would really have next to zero operating costs). Also you wouldn't have to worry about storing it outdoors either.
Interest and closing costs are very minimal in the overall. I think you're a little too worried about getting a vehicle that has too many problems. Look for something modest, with somewhere around 75-100K miles and it should last quite a while with basic standard maintenance. You should easily be able to get a 5-10 yr old vehicle for $8-$12K, with a $200-$300 a month car payment no problem.
I think you should talk to your bank/credit union, and see what they can do for you. They will probably give you the best rate your gonna get, and certainly better than a dealer. Find out what you can afford, see where your budget falls, and know your numbers. Then you can look around and see what could happen.
Zero debt looks good to me.
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