Non Running - Trading in a Car (2005)

Thanks for all of the replies. When I bought the car, I didnt have a house(that I completely renovated) and other expenses (paying off grad school). Im a teacher. Im not broke and going to lose everything or repo the car, anything like that. I am just trying to see some options to save and pay down some debt i have. with having the summer off, I think i am going to wait it out, get a summer job, pay down as much as possible, and see what happens if i try to sell it.

If you are thinking of the FIT, the Civic might be a good idea, too, given that the mileage ratings are about the same and you get a bit more room and a trunk. The Civic has good crash test ratings, including side test, don't know of the FIT.

Our 2008 Hybrid has side air bags, too, for what it's worth.

Last summer I traded a '97 mini van for a '05 mini van. I, like anyone else, wanted the best deal. To make the deal work, we came to terms for the trade in price vs. the newer van. What blew me away was I asked to keep the old van for a month to try and sell it out right. No problem, just give us this agreed amount for the trade in or the van in a month.

Now, this was the 3rd vehicle deal I have done with this dealer so I had some history. Small town, every body knows everybody kinda thing. I was just shooting from the hip and they had no problem.

Maybe a month is too long for them to carry you. Would 2 weeks work then?

It has not been mentioned and it should. ALWAYS buy a vehicle the end of a month. There are real bullets in the gun pointed at their head the end of every month.

danno wrote:

He would be taking out an unsecured personal loan on that $5000. All thing being equal, and given the tighter credit now than in '05, the rate on that loan will probably be significantly higher than the open loan on the SUV he has right now. That is not going away in 13 months of 380 pmts, also he could be $6K flipped in the SUV which makes it even worse. I agreee w/ your sentiments on debt, but sometimes the "stupid tax" can be paid by installments. I think he is better off riding out the existing loan.

So, if the rate on a personal loan is a little higher, then pay $400 a month toward it and get it gone in 13 months anyway. MUCH better than having to pay for that vehicle for a few more years -- more on gas, more on payments, more in insurance than a smaller used car.

Rule of thumb should be that when you add up everything you own with a motor, it shouldn't be more than half your annual income (and ideally those things should be bought with cash -- no payments). Depending on how long he's been a teacher, he may or may not be ok with that rule of thumb. In any event, it seems he's making some correct decisions now -- going to get a summer job to help pay debt down, thinking of getting rid of this car (which he should as soon as possible).