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Hello everyone!
I am looking for your thoughts on if we should sell one of our cars. We try and live a frugal life, but sometimes I am frugal to the point of costing more my family more money, so I thought I would ask for your thoughts on our situation.
At this time we own outright 2 vehicles. DH works out of town most days so his vehicle sits in the parking lot. I have not worked outside the home for about 4 years now, so my car also sits - a lot. The "problem" is his office is 65 miles away, so picking him up and dropping him every time isn't that simple (2-21/2 hr round trip)but is not impossible either since I set my own schedule.
My car is a good car, 5 years old, low maintenance (although we JUST put new tires on it!) Monthly it runs us about $100. It's not a huge drain on us, but we dont use it or the other car but part time. I am wondering if it wouldn't be more prudent to sell it now and then put that money in a separate fund to start paying for the next vehicle (like to pay cash next time) and deal with any inconvenience we may experience.
OR
Its paid for we would lose all the money (yes, we bought new, lesson learned!) so we might as well keep driving it until it starts to need work and then see where we are at...
What would you wise people suggest?
Thank you!
One thought would be sell the car that's older with the higher mileage and you take a cab for those few times you need to go somewhere not accessible by foot, bike or public transportation.
Since both cars are paid off, keep the cars. $100 a month is a bargain for the security of knowing that you'll have transportation if one car breaks down. Also it's insane to drive your husband 65 miles to/from work so you can have a car. And if he takes the car to work, you have no way to take children to the doctor if there is an emergency. If you give up that second car, you could find yourself in a jam if you need to return to work. You might not work now, but you might need to work in the future.
Hello everyone!
I am looking for your thoughts on if we should sell one of our cars. We try and live a frugal life, but sometimes I am frugal to the point of costing more my family more money, so I thought I would ask for your thoughts on our situation.
At this time we own outright 2 vehicles. DH works out of town most days so his vehicle sits in the parking lot. I have not worked outside the home for about 4 years now, so my car also sits - a lot. The "problem" is his office is 65 miles away, so picking him up and dropping him every time isn't that simple (2-21/2 hr round trip)but is not impossible either since I set my own schedule.
My car is a good car, 5 years old, low maintenance (although we JUST put new tires on it!) Monthly it runs us about $100. It's not a huge drain on us, but we dont use it or the other car but part time. I am wondering if it wouldn't be more prudent to sell it now and then put that money in a separate fund to start paying for the next vehicle (like to pay cash next time) and deal with any inconvenience we may experience.
OR
Its paid for we would lose all the money (yes, we bought new, lesson learned!) so we might as well keep driving it until it starts to need work and then see where we are at...
What would you wise people suggest?
Thank you!
I am in the same situation you are in. I did a detailed spreadsheet regarding carrying cost, future value, monies saved,etc and it came down to knowing the type of market for the vehicle(s) in question. One also needs to know the level of degradation the vehicle can suffer due to lengthy periods of non-use.
A subjective factor is how you feel driving a fairly aged vehicle in the future if you elect to retain the vehicle. There is no mathematical value for that but it needs to be part of a decision tree.
Felix, I have only had 3 cars in my lifetime..usually drive em till they literally fall apart! That's what makes this so hard..to me this 5 year old is still in its youth! Its the degradation of periods of sitting for both cars that concerns me also. And the lack of a car fund for the next one, the fuel and groceries seem to be sucking that up! and we eat beans and rice!
No kids so we do not have that concern, and although we dont live in a walkable town", (no public trans), the stores are in walking/biking distance and I use that means of transportation when the weathers good anyway.
Its the giving up the car and finding ourselves in a jam. In fact we got the new tires because I had a flat one morning and thought "gee what if this was the morning I had to take my husband to work" That would be one expensive cab ride! Hopes - and right....what if I should need to return to work outside the house....I should add I feel blessed to be in the position to even be considering this.
Good thoughts from all of you
Felix, I have only had 3 cars in my lifetime..usually drive em till they literally fall apart! That's what makes this so hard..to me this 5 year old is still in its youth! Its the degradation of periods of sitting for both cars that concerns me also. And the lack of a car fund for the next one, the fuel and groceries seem to be sucking that up! and we eat beans and rice!
No kids so we do not have that concern, and although we dont live in a walkable town", (no public trans), the stores are in walking/biking distance and I use that means of transportation when the weathers good anyway.
Its the giving up the car and finding ourselves in a jam. In fact we got the new tires because I had a flat one morning and thought "gee what if this was the morning I had to take my husband to work" That would be one expensive cab ride! Hopes - and right....what if I should need to return to work outside the house....I should add I feel blessed to be in the position to even be considering this.
Good thoughts from all of you
I too drive my cars until they require too much maintenance investment. I do not mind driving an older car but needed to include that in the previous response. We are rather similar in terms of no children, limited public transportation availability but do have grocery stores within walking distance. The carrying cost of the extra vehicle is $70 monthly regarding insurance and annual maintenance expensed monthly.
In my opinion a car fund is not needed so long as there are two cars. But this is more subjective than analytical.
We part company in boldened text above. This adds a weighty aspect to the calcuation. No external advice on this as only you and your husband know what the situation is and how to resolve. I suppose you need to calculate how much selling the auto. would benefit that part. Also, list the possible consequences and outcomes.
I am only familiar with a very narrow type of vehicle class but believe it is accurate to state that five years post-model is near the low point in terms of resale value. Unless you have a desireable model for the market in question.
Honestly, do a chart and factor in possible external factors.
If it helps, I elected to keep my extra vehicle but will revisit the option next year. I do drive to work every day and my wife would essentially be unable to get out to any other area beyond the grocery store. That was a factor.
If fuel costs and groceries are making it impossible to save even minimal money, cutting that $100 in car insurance isn't going to solve your problem. Fuel and grocery prices are only going to increase and suck up that $100. Then you'll be in the same boat you are in now, except you will only own one vehicle instead of two.
The reality is that if your fuel and grocery costs are stretching your budget to the limit of counting pennies, NOW is the time for you to return to the workforce. Since you don't have children, there is really no reason for you to remain home if your household budget is so tight that there's only $100 left to cut.
Bottom line, your household needs more income. The solution is to keep the car and return to work, even if part time. And recognize that you're not returning to work to keep a car since it's only $100 that will disappear quickly with inflation. You're returning to work because the cost of living is fast out pacing your husband's income.
Hello everyone!
I am looking for your thoughts on if we should sell one of our cars.
My car is a good car, 5 years old, low maintenance (although we JUST put new tires on it!) Monthly it runs us about $100.
What does the $100 cover?
Gas of both vehices, and insurance on both vehicles, and property taxes on both vehicles? ($1200 a year)
I have two vehicles with only one driver.
I pay the extra $134 per 6 months for the insurance on the 2nd vehicle, and the $88 a year property taxes on the 2nd vehicle.
It's a newer model than the car, and is a pickup truck.
I do this, because my car, could die at any time and I have no transportation to travel to other nearby cities to look for another vehicle.
I use the truck maybe 10 miles a month. So, I am basically losing $356 a year on the truck.
How important to you is the "looks" of what you drive? If it does not matter, keep your newest vehicle, and let your husband drive that one. Since he travels further, and the car is fairly new, but you lost so much in depreciation the day you left the car lot, and is not worth selling. You won't get far value.
Sell the other car, the older one. Take the funds from that and a buy a car like mine. 1997 Mitsubishi Galant, cost $1100. No repairs since I bought it. And I bought from an individual, so I'd avoid dealers. Also, dealers offer these amazing trade in values that are not real. Never trade your old car in, always sell to an individual.
Your insurance may be lower on the older car you buy, as well as the property taxes. You do not do that much driving, and if you did get a job, in may be within 3-5 miles of your home. No, the $1100 junker won't look so great, but what is more important:
1. The looks and the higher cost to maintain?
2. Whether it gets you where you want to go, regardless of looks?
For me it is #2.
If you sell your oldest car and replace it with an "around town $1100 (or lower) car" you can use the extra money left over, to pay down debt, or divide it into many pieces and reserve each piece so it can be used each month for one or more of your monthly expenses.
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) so we might as well keep driving it until it starts to need work and then see where we are at...
