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Message
Need advice on whether to sell car to pay off some bills
Posted on 8/10/13 at 4:50 pm
Posted on 8/10/13 at 4:50 pm
I am considering making a move with my vehicle in order to help pay off some credit card bills. Here is the situation I need advice on:
My vehicle has about $10,000 in equity in it (according to what Carmax offered for it and how much I owe). I am considering taking the offer and using about $8,000 to pay off my credit card bills. Note, I have so much in credit card bills because of a difficult time a while back between jobs.
Here is the twist I need help with. Would it be a bad move to use about $1,500 to put towards a lease on a truck? My new truck payments would only be about $300/month, which is only $30 more than what I am paying now. I don't drive much so I should never go over the lease miles.
If I do this, I will be free of credit card bills and still have a reliable vehicle without much increase in my monthly note. Obviously, I would not own the new vehicle, but I typically do not keep a car more than a few years anyway.
I know some advisers like Dave Ramsey loathe leases, but what do you guys think? Take the offer and the lease, or maybe something else?
My vehicle has about $10,000 in equity in it (according to what Carmax offered for it and how much I owe). I am considering taking the offer and using about $8,000 to pay off my credit card bills. Note, I have so much in credit card bills because of a difficult time a while back between jobs.
Here is the twist I need help with. Would it be a bad move to use about $1,500 to put towards a lease on a truck? My new truck payments would only be about $300/month, which is only $30 more than what I am paying now. I don't drive much so I should never go over the lease miles.
If I do this, I will be free of credit card bills and still have a reliable vehicle without much increase in my monthly note. Obviously, I would not own the new vehicle, but I typically do not keep a car more than a few years anyway.
I know some advisers like Dave Ramsey loathe leases, but what do you guys think? Take the offer and the lease, or maybe something else?
7
Posted on 8/10/13 at 4:53 pm to AnonymousTiger
If you can get a good trade in value on the car the lease option doesn't sound bad
The 30 more a month won't be near as much as the useless interest you'll be paying on the CC debts. If you can use that cash flow to knock your CC debts down considerably it's probably a smart move.
The 30 more a month won't be near as much as the useless interest you'll be paying on the CC debts. If you can use that cash flow to knock your CC debts down considerably it's probably a smart move.
Posted on 8/10/13 at 5:09 pm to AnonymousTiger
I am a Dave Ramsey fan, and hate leases as well. If it were me I would pay off the 8K in credit, and use the other 2K and whatever money you have and buy a vehicle instead of lease.
I hate the thought of paying money for a vehicle I have to give back and get nothing for, but that's just me.
It eliminates the payment altogether and you put that money back in your pocket each month.
I hate the thought of paying money for a vehicle I have to give back and get nothing for, but that's just me.
It eliminates the payment altogether and you put that money back in your pocket each month.
Posted on 8/10/13 at 5:17 pm to AnonymousTiger
If you are happy with your current vehicle, you could research refinancing it and apply the surplus amount (equity withdrawn) to your CC balances and thereby avoid the lease situation.
Posted on 8/10/13 at 6:30 pm to AnonymousTiger
Don't lease, horrible idea.
Posted on 8/10/13 at 7:35 pm to AnonymousTiger
Sell the car and pay off the bills.
Put $2,000 down on a used car that you buy for $5,000(PLENTY of reliable ones in this range).
Pay it off in a year with $250 a month
This is what I would do.
Put $2,000 down on a used car that you buy for $5,000(PLENTY of reliable ones in this range).
Pay it off in a year with $250 a month
This is what I would do.
This post was edited on 8/10/13 at 7:35 pm
Posted on 8/10/13 at 9:20 pm to AnonymousTiger
See if you can refi the auto loan to convert some of that equity to cash. Use the cash to pay the credit cards.
Carmax (like any dealership) isn't going to make an offer that is "fair", their offer probably builds in a couple of thousand they will have to pay to inspect the car, clean it up, warranty it, etc. in order to put it on their lot. So the car is probably around a $12K asset, plus you are going to pay the dealer a second time for your replacement. So I'd seriously look into keeping it and using it to get an auto loan instead.
Carmax (like any dealership) isn't going to make an offer that is "fair", their offer probably builds in a couple of thousand they will have to pay to inspect the car, clean it up, warranty it, etc. in order to put it on their lot. So the car is probably around a $12K asset, plus you are going to pay the dealer a second time for your replacement. So I'd seriously look into keeping it and using it to get an auto loan instead.
Posted on 8/11/13 at 2:25 am to AnonymousTiger
do this.
sell the car via craigslist never car max. they make money by lowballing vehicles they buy to sell at a big profit.
if you didnt know that much in the first place you will likely be in dept once again real soon.
#1 take the 12-13k that you can make by selling the truck.
#2 pay off cc bills
#3 with the leftover 4-5 k shoot me a email and i can put you in a great honda that will last longer than any other car for the price.
simple as that.
sell the car via craigslist never car max. they make money by lowballing vehicles they buy to sell at a big profit.
if you didnt know that much in the first place you will likely be in dept once again real soon.
#1 take the 12-13k that you can make by selling the truck.
#2 pay off cc bills
#3 with the leftover 4-5 k shoot me a email and i can put you in a great honda that will last longer than any other car for the price.
simple as that.
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