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Negative Equity Auto vs CC Debt

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rated:
Hey all,

I've made some terrible financial choices throughout my 20's and have only recently changed my ways from the "head in the sand" accounting method. I've analyzed and corrected my behaviours to avoid the same issues going forward, but I have one last problem to solve.

Here is my current situation:
I recently bought a brand new car that was way out of my means, gets horrible gas mileage, and costs a ton to insure.

Current Loan Balance: 36,000 @ 3.5%
Monthly payment: 635
Monthly Gas: 250
Monthly Insurance: 110
Car's current KBB trade in value: 31k-32k

The mileage on the car is currenlty 4500. It is a vehicle that holds its value extremely well, and the current KBB for the same vehicle, 2 years older, with 25,000 miles is 28K. I have just eaten most of the depreciation of the vehicle. 


This alone is not an issue with my income. However, I have amassed a great amount (40k...Yes, I know, I'm an idiot) of high interest credit card debt. I have transferred what I can to 0% balance cards, but still have a sizeable amount to pay down at 15%+. Once I pay down the balance of a card, I usually receive 0% APR balance transfer offers, so I will continue to juggle those.


I've trimmed all fat out of my budget and every spare cent is going towards these debts. However, my current auto situation needs to change. I have looked through the local market for 4-6k cars and have not found anything that would be reliable enough to meet our needs. Plus that 4-6k cash expenditure could be put towards 15% debt.


I am looking to purchase a 2014-2015 base model Mazda 3 with 20-40k miles. These can be had locally for 10-13k. I have calculated my mileage savings and insurance savings and would save $170 a month alone in gas and insurance. My state does not tax the amount covered by a trade in so I would pay no tax on the transaction.


My question is whether I should continue paying my current car loan down until I break even (Or build equity) to trade in, or if I should roll the 4,000 negative equity into the used Mazda purchase. The downsides I see to keeping my current loan is that I lose $170 each month to insurance and gas. 

The end result would be:
Loan Amt: 14,000-18,000 @ 4-5%
Gas: 110
Insurance: 75

I can afford all CC payments + a little extra each month regardless of what choice I make. I am unsure of which road to take to pay off the total debt sooner. My goal is to be debt free with a reliable car at the end of the day. By purchasing the Mazda I will be saving $500+ dollars a month that could be used towards my higher interest debt, but would be underwater for quite some time on the vehicle. 

Also to note, my current vehicle is still under warranty for the next 5 years, 60,000 miles and has all maintenance included for the first 2 years. Despite it's bad fuel economy it will hold its value extremely well throughout it's life.

Member Summary
Most Recent Posts
Dearest work slave who will never retire:

Here is my expert advice.

Get rid of your car. Buy a car that is solid- not a cl... (more)

sunsetcliff (Jun. 23, 2017 @ 6:45a) |

Sounds like you bought an extended warranty for the car. If so, cancel it.

Reprice your insurance with AMICA, making sur... (more)

EradicateSpam (Jun. 23, 2017 @ 7:02a) |

I didn't miss your point, I simply disagree with you. I don't think he ever had the intention of getting rid of the car ... (more)

meade18 (Jun. 26, 2017 @ 1:59p) |

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rated:
Good luck getting a 150% LTV (on a Mazda purchase rolling in $4k) at a reasonable rate though... Not being a jerk at all, it's just one of the main factors that can kill a deal like this.

rated:
That's a good point. The KBB on the Mazda's is about 13-15k, the Market seems flooded with them at the moment. The resulting 18-19k loan would be 120-135% LTV, there won't be taxes, but the additional tags/doc fee might push it above a threshold.

In 2 years I'll have 4k positive equity in the vehicle, and all maintenance/repairs are covered for that time so it might make sense just to keep it. Just not sure what the opportunity cost of putting the $500/month Mazda savings towards CC debt would be.

rated:
1) If you enjoy the car more than just for transportation, I'd keep it and try to refinance at a lower rate. Penfed has 1.99% for 48 months and 2.49% for 60 months.
2) Aggressively pay off credit card debt
3) I'm sure there's more you can optimize in your budget.
4) I have a 2013 Mazda 3 Hatchback with 40,000 miles if you'd like to buy it

rated:
PoorLifeDecisions said:   ...
 I have looked through the local market for 4-6k cars and have not found anything that would be reliable enough to meet our needs. 


I am looking to purchase a 2014-2015 base model Mazda 3 with 20-40k miles. ...

  

Respectfully I think you need to change your expectations as far as your car "needs".

If you can make due with a 2-3 year old Mazda 3 then your actual "needs" are not above a 4-6k car.

Go find a 15-20 year old Corolla with 100-150k miles or something like that for 3-4k.

 

rated:
Thanks for all the advice.

I think the smartest idea is to keep the current vehicle for the time being. I ran through the math and if I finance each amount at the same term/interest rate I will be in one of two places in 2 years. Either I will have saved $374 a month and owe $12,800 on a Mazda worth $6000 or I will have lost that $374 savings, but owe $24,000 on a vehicle worth $28,000.

Once I get to the breaking even point, I will re-evaluate options and perhaps sell the car outright, pick up a car for $3-4000 and drive it until it dies.

I was originally turned off from the "$3k Beater" strategy due to the fact that I've owned two separate cars in that price range, that completed Pre purchase inspections with flying colors, and proceeded to require $2-3k in repairs within the first year. I'm sure there is a happy medium somewhere with the value/reliability of a vehicle though.

I do agree that I can, and should, change my expectations on my needs. I've lived beyond my means for far too long so this is definitely a learning experience. I am fortunate to make enough money that, even saddled with my current debt, I am able to live a comfortable lifestyle without worrying about missing bills. However, I'm coming to the realization that I would rather not work until I'm dead so I should make some changes. Thanks again to everyone.

rated:
If you're still living "comfortably" then you're really not minimizing your spending as you've stated. Not saying you should eat only rice and beans as others may suggest. Just saying that paying off debt shouldn't afford you a comfortable lifestyle if you've really cut things out. Food for thought.

rated:
Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.

rated:
Thank you for putting the info and the reason for selling the car is the payment. (Instead of 'hating' the car)

1) You have 4500 miles? You've only had this car for 6 months?
2) You can get a higher price than KBB, if you Private Party
3) While the Mazda 3 is a good car, you might want to look at something older like a Mazda 5, it's a older car but as reliable as a 3. A 2009 Mazda 5 should be less than 10k.

Good luck PLD, Always keep your eyes on the goal, which is saving money.

rated:
For everyone, forbin? I think these threads are your kryptonite.

rated:
PoorLifeDecisions said:   "head in the sand" accounting method

rated:
I would keep the existing car rather then pay dealer more profit for trade\ new purchase however I would refi at lower rate \ possible longer term(72-84) to get payment down then put all difference at high rate cc debt. Many lenders lend off retail value instead of trade so might be able to take cash out at 2-3% and pay down cc debt. Once cc debt is paid you can refi car loan to short term low rate loan if desired.

rated:
PoorLifeDecisions said:   
In 2 years I'll have 4k positive equity in the vehicle, and all maintenance/repairs are covered for that time so it might make sense just to keep it. Just not sure what the opportunity cost of putting the $500/month Mazda savings towards CC debt would be.

  The whole "positive equity" thing is a fallacy.  The car will only be worth more than the loan balance in 2 years because you will have put another $15,000 cash towards it.  Spending $15k cash to gain $8k equity isn't exactly a "gain".  That extra $7,000 could buy you an entire car, not just the privilege of using your current car for 2 more years.
 

rated:
Please show a high level of your budget and monthly income - you may get some better advice on how to save $.  Sounds like you are in your 30's -- one thing that continues to amaze me is those that carry $100-$200+ cell phone bills per month for something that really is a luxury item (unless you are losing income by not having a plan that has lots of data).  Not saying this is you, but if so, a great place to start.  You can get a Republic wireless or comparable plan with an older phone and pay ~$13/month if you keep your data usage down.

There may be other ways people can help after seeing your budget. 

rated:
Are you sure you need a car?

I would treat the 170 extra plus estimated monthly depreciation as another interest expense. Get the credit cards down to the point where this is your greatest expense, then revisit. It's not totally valid since depreciation is a capital expense but it gives you a way to incorporate it with the rest of your financial picture.

rated:
What's done is already done. Keep the car. It puts a smile on your face. Get rid of the other debt. May be in few years when you are done with this car, get a used accord/camry. At least you drove a nice car throughout your 30's.

rated:
jaytrader said:   For everyone, forbin? I think these threads are your kryptonite.
  Haha, funny.
These threads where you can see a person who is going deeper in debt for unspecific reasons such as 'hate' is where my pet peeves go off (because I have been there)
At least OP has spent some time thinking about how to save money.

rated:
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that isn't VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

rated:
The new car would save you $175/month in gas and insurance.

Then you have how much less interest you'd pay for the newer cheaper car. New car loan say $8k at 3.5% would cost you around $150/month so you'd have almost $500 extra monthly to pay down 15% CC debt instead of higher auto loan balance @3.5%.

Putting it together, you'd be saving per month $175 (gas+insurance) plus almost $500 extra that you could put to pay down 15% CC debt instead of paying down 3.5% auto loan debt.

Even with the prospect of potentially taking a short-term personal loan (as long as rate isn't 15%) for the $4k negative equity on current luxury car, the switch seems highly likely to save tons of money quickly. I'm not sure how OP's math adds up to the decision of keeping the luxury car for 2 more years. Especially considering the added cost of depreciation of the luxury car vs. that of a more modest and older car. That may be another $3-4k sunk while keeping the luxury car.

rated:
meade18 said:   
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that is VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

  LOL relax killer. Just because you haven't owned a car that cost you more than $8k doesn't mean others shouldn't. That is such a narrow minded thing to say and get angry about. You making the most you've ever made doesn't mean anything. That might just be $50k. Or it could be $5MM. Doesn't matter. You aren't OP. OP isn't you. Take your opinion the hell out of the thread and come back with some logical, objective thought. OP shouldn't give your reply a single ounce of consideration. What a horrible approach to giving someone advice. 

rated:
jaytrader said:   
meade18 said:   
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that is VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

  LOL relax killer. Just because you haven't owned a car that cost you more than $8k doesn't mean others shouldn't. That is such a narrow minded thing to say and get angry about. You making the most you've ever made doesn't mean anything. That might just be $50k. Or it could be $5MM. Doesn't matter. You aren't OP. OP isn't you. Take your opinion the hell out of the thread and come back with some logical, objective thought. OP shouldn't give your reply a single ounce of consideration. What a horrible approach to giving someone advice. 

  
Everything you said would be true if the OP didn't have $40k in credit card debt. Since he does, my advice matters. The experience of me and everyone else that has never had a $10k car matters.

Also, since when can you not call people out on FWF for lying? "I live a spartan lifestyle with no luxuries" and "I have a $36,000 car loan" are two mutually exclusive statements. They cannot be true at the same time. Not at the forum home to the "buy a crown vic" line of car advice.

There is absolutely nothing illogical or un-objective about my advice. We've seen these threads a million times. The OP literally got three replies (only 1 that said keep the car, another that said a nicer version of what I am saying) over the course of 30 minutes, came back and said, "Thanks for all the advice. I think the smartest idea is to keep the current vehicle for the time being." What they heck did he come here and ask the questions for if his mind was made up?

My post isn't as much for the OP, as he is likely gone, never coming back, and wouldn't take my advice anyway. My post is more for the rest of the people on FWF that aren't as set in their ways as the OP that might be in debt and also have an expensive car note that is killing them.

rated:
meade18 said:   
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that is VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

  Why even have a car.  Just bike, walk or bus.  You don't need a house.  There are homeless shelters out there.  They will give you food.

rated:
king0fSpades said:   
meade18 said:   
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that is VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

  Why even have a car.  Just bike, walk or bus.  You don't need a house.  There are homeless shelters out there.  They will give you food.

  False equivalency.

rated:
meade18 said:   
king0fSpades said:   
 
  Why even have a car.  Just bike, walk or bus.  You don't need a house.  There are homeless shelters out there.  They will give you food.

  False equivalency.

  Very false.

Walk = Change job to a local one.
Bus = Fixed work hours.  If you wish to make more money you probably can't work a 'fixed' set of hours.
You don't need a house = ... well true
Homeless Shelters = Well ones with No crazy people , doesn't smell, and has an internet connection might not exist at a homeless shelter
​​​​​​​

rated:
meade18 said:   
jaytrader said:   
meade18 said:   
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
 

  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that is VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

  LOL relax killer. Just because you haven't owned a car that cost you more than $8k doesn't mean others shouldn't. That is such a narrow minded thing to say and get angry about. You making the most you've ever made doesn't mean anything. That might just be $50k. Or it could be $5MM. Doesn't matter. You aren't OP. OP isn't you. Take your opinion the hell out of the thread and come back with some logical, objective thought. OP shouldn't give your reply a single ounce of consideration. What a horrible approach to giving someone advice. 

  
Everything you said would be true if the OP didn't have $40k in credit card debt. Since he does, my advice matters. The experience of me and everyone else that has never had a $10k car matters.

Also, since when can you not call people out on FWF for lying? "I live a spartan lifestyle with no luxuries" and "I have a $36,000 car loan" are two mutually exclusive statements. They cannot be true at the same time. Not at the forum home to the "buy a crown vic" line of car advice.

There is absolutely nothing illogical or un-objective about my advice. We've seen these threads a million times. The OP literally got three replies (only 1 that said keep the car, another that said a nicer version of what I am saying) over the course of 30 minutes, came back and said, "Thanks for all the advice. I think the smartest idea is to keep the current vehicle for the time being." What they heck did he come here and ask the questions for if his mind was made up?

My post isn't as much for the OP, as he is likely gone, never coming back, and wouldn't take my advice anyway. My post is more for the rest of the people on FWF that aren't as set in their ways as the OP that might be in debt and also have an expensive car note that is killing them.
 

  I look more at the "I've knocked anything that's not vital out of the monthly recurring budget " and "$635 monthly car payment", and reach the same conclusion.

rated:
meade18 said:   
jaytrader said:   
meade18 said:   
PoorLifeDecisions said:   Sorry, I should have clarified, I meant comfortable in the fact that I can afford all of my utilities, rent, and monthly debt payments without stressing about making ends meet. My current lifestyle is definitely spartan compared to before, I've knocked anything that's not vital out of the monthly recurring budget and have started selling off all the unneccessary possesions I've accumulated. I no longer have the luxuries that I used to have, but my mental health has never been better since I'm heading in the correct direction for once.
  
If you have a $36,000 vehicle, you ABSOLUTELY have a luxury, your lifestyle is NOT spartan, you haven't knocked everything out that is VITAL, and you haven't sold off all your UNNECESSARY possessions. Get out of here with that s***

Sell the damn car and drive something cheaper.

8 years ago, I had a $6,000 car and wanted to buy a house, so I sold it and bought a $2,500 car. If you're not willing to sell your car to pay off your credit cards, you simply don't care enough.

Why do you think you need a $36,000 car or even a $10,000 car. I've never owned a car that cost me more than $8,000. I've never had a higher income than I currently do, yet I currently drive a 13 year old car with 230,000 miles. What makes you so special?

  LOL relax killer. Just because you haven't owned a car that cost you more than $8k doesn't mean others shouldn't. That is such a narrow minded thing to say and get angry about. You making the most you've ever made doesn't mean anything. That might just be $50k. Or it could be $5MM. Doesn't matter. You aren't OP. OP isn't you. Take your opinion the hell out of the thread and come back with some logical, objective thought. OP shouldn't give your reply a single ounce of consideration. What a horrible approach to giving someone advice. 

  
Everything you said would be true if the OP didn't have $40k in credit card debt. Since he does, my advice matters. The experience of me and everyone else that has never had a $10k car matters.

Also, since when can you not call people out on FWF for lying? "I live a spartan lifestyle with no luxuries" and "I have a $36,000 car loan" are two mutually exclusive statements. They cannot be true at the same time. Not at the forum home to the "buy a crown vic" line of car advice.

There is absolutely nothing illogical or un-objective about my advice. We've seen these threads a million times. The OP literally got three replies (only 1 that said keep the car, another that said a nicer version of what I am saying) over the course of 30 minutes, came back and said, "Thanks for all the advice. I think the smartest idea is to keep the current vehicle for the time being." What they heck did he come here and ask the questions for if his mind was made up?

My post isn't as much for the OP, as he is likely gone, never coming back, and wouldn't take my advice anyway. My post is more for the rest of the people on FWF that aren't as set in their ways as the OP that might be in debt and also have an expensive car note that is killing them.

 ob·jec·tive
əbˈjektiv/
adjective

  1. 1.
    (of a person or their judgment) not influenced by personal feelings or opinions in considering and representing facts.

Not to mention, you're completely discounting the fact that OP came here, specifically, trying to get rid of the $36k car. You're saying they're not living a spartan lifestyle with a $36k car, yet that is LITERALLY the entire point of this thread--about getting out of the $36k car.

rated:
jaytrader said:   
 
 ob·jec·tive
əbˈjektiv/
adjective

  1. 1.
    (of a person or their judgment) not influenced by personal feelings or opinions in considering and representing facts.

Not to mention, you're completely discounting the fact that OP came here, specifically, trying to get rid of the $36k car. You're saying they're not living a spartan lifestyle with a $36k car, yet that is LITERALLY the entire point of this thread--about getting out of the $36k car.

  Wow , I'm just realizing that you like Trolling considering you counter argued another post where the guy was selling the car for 'Hate' and I tried to convince him otherwise.

rated:
PoorLifeDecisions said:   Thanks for all the advice.

I think the smartest idea is to keep the current vehicle for the time being. I ran through the math and if I finance each amount at the same term/interest rate I will be in one of two places in 2 years. Either I will have saved $374 a month and owe $12,800 on a Mazda worth $6000 or I will have lost that $374 savings, but owe $24,000 on a vehicle worth $28,000.
 

  I missed this when you posted - of course keeping the car is going to look like a better option when you are planning to pay off $12,000 of the debt over 2 years, but only payoff $1,200 of the debt from that new Mazda over 2 years...   To compare apples to apples, if you get the cheaper car and continue making the same monthly payments, and kick in the insurance/gas savings toward the loan each month, you'll have the new Mazda entirely paid off within 2 years plus have some extra cash in the bank. 

rated:
jaytrader said:   
meade18 said:   
Everything you said would be true if the OP didn't have $40k in credit card debt. Since he does, my advice matters. The experience of me and everyone else that has never had a $10k car matters.

Also, since when can you not call people out on FWF for lying? "I live a spartan lifestyle with no luxuries" and "I have a $36,000 car loan" are two mutually exclusive statements. They cannot be true at the same time. Not at the forum home to the "buy a crown vic" line of car advice.

There is absolutely nothing illogical or un-objective about my advice. We've seen these threads a million times. The OP literally got three replies (only 1 that said keep the car, another that said a nicer version of what I am saying) over the course of 30 minutes, came back and said, "Thanks for all the advice. I think the smartest idea is to keep the current vehicle for the time being." What they heck did he come here and ask the questions for if his mind was made up?

My post isn't as much for the OP, as he is likely gone, never coming back, and wouldn't take my advice anyway. My post is more for the rest of the people on FWF that aren't as set in their ways as the OP that might be in debt and also have an expensive car note that is killing them.

 ob·jec·tive
əbˈjektiv/
adjective

  1. 1.
    (of a person or their judgment) not influenced by personal feelings or opinions in considering and representing facts.

Not to mention, you're completely discounting the fact that OP came here, specifically, trying to get rid of the $36k car. You're saying they're not living a spartan lifestyle with a $36k car, yet that is LITERALLY the entire point of this thread--about getting out of the $36k car.


Let's be honest here. The OP came here with the intention of choosing between two options: Keeping a brand new car that puts him beyond his means or buying a used car for $10-13k and rolling negative equity into a loan for that car. In the back of his mind, he knows there is a smarter 3rd option of getting rid of his expensive ride and driving something cheap. That's why he specifically claimed that there are no $4-6k cars that are relaibale enough for him.

BULL****

We all know what that means. He doesn't want to drive a lame car. And that was the motivation behind me saying what I said about my cheap ass cars.

It doesn't matter what my opinion is, the FACT is that HE HAS $40K IN CREDIT CARD DEBT. Based on that FACT, he shouldn't have a car loan too. I assume he can't sell anything worth nearly $40k to satisfy a majority of the credit card debt, but he damn sure can sell something to satisfy the majority of the car loan. Objectively speaking, that's what he should do. Do you disagree?

rated:
I agree completely, hence my comment about how OP isn't really living a sparse lifestyle if he is living "comfortably" ( https://www.fatwallet.com/forums/finance/1573466?showmessage=19901561 ).  However, I think you missed my point. This thread is about getting rid of that car. You're making it seem like it's something else and then arguing that OP should get rid of the car. Whether OP takes suggestions here or not, this thread was born with the intention of getting out of the current expensive car to pay off debt. You're arguing for something that this thread addresses in and of itself. Therefore your "advice" is nothing but your opinion, and trying to push it on others, since the actual meat of your argument is redundant to the OP. 

rated:
forbin4040 said:   
jaytrader said:   
 
 ob·jec·tive
əbˈjektiv/
adjective

  1. 1.
    (of a person or their judgment) not influenced by personal feelings or opinions in considering and representing facts.

Not to mention, you're completely discounting the fact that OP came here, specifically, trying to get rid of the $36k car. You're saying they're not living a spartan lifestyle with a $36k car, yet that is LITERALLY the entire point of this thread--about getting out of the $36k car.

  Wow , I'm just realizing that you like Trolling considering you counter argued another post where the guy was selling the car for 'Hate' and I tried to convince him otherwise.

  Your delivery was very poor in that thread, didn't I mention that, or elude to it? Is different when you're the OP. OP is inherently subjective. It's our job to be objective, in order for us to have a meaningful impact. 

rated:
no you didn't

rated:
forbin4040 said:   no you didn't
  My fault. I guess I was thinking it but again, didn't want to start an argument. I just read through it again and honestly, I feel as though I've conveyed the same thoughts here. I said that everyone has opinions and they come out of the woodwork but doesn't seem people offer advice. People are quick to judge and look for validation of their own experiences and opinions, but don't really answer the questions the OPs have because, oh, we've seen this so many times blah blah. 

rated:
Dearest work slave who will never retire:

Here is my expert advice.

Get rid of your car. Buy a car that is solid- not a clunker- no bells and whistles.
When you purchase the car- look for decent gas mileage.

Your insurance is too high.  Get an estimate from a no name company. 

On credit card debt 0% offers- they have a way of going away quickly- and with out notice... I would not pay 0% credit card- I would tho save it in a slush fund for a future plan of action.

Consider that is you default- they can repo your car. If you default on credit cards- it is unsecured debt- so they have less options.

I assume you dont own a house, and have nothing saved for retirement. A bankruptcy might be a good thing for you.

Finally- everyone here has paid a price for their ego. So rethink your lifestyle- particularly is the economy goes into another recession.

rated:
Sounds like you bought an extended warranty for the car. If so, cancel it.

Reprice your insurance with AMICA, making sure you have at least a $500 deductible.

Refinance loan with PenFed.

rated:
jaytrader said:   I agree completely, hence my comment about how OP isn't really living a sparse lifestyle if he is living "comfortably" ( https://www.fatwallet.com/forums/finance/1573466?showmessage= 19901561 ).  However, I think you missed my point. This thread is about getting rid of that car. You're making it seem like it's something else and then arguing that OP should get rid of the car. Whether OP takes suggestions here or not, this thread was born with the intention of getting out of the current expensive car to pay off debt. You're arguing for something that this thread addresses in and of itself. Therefore your "advice" is nothing but your opinion, and trying to push it on others, since the actual meat of your argument is redundant to the OP. 

I didn't miss your point, I simply disagree with you. I don't think he ever had the intention of getting rid of the car UNLESS he could find a 150% LTV loan for the Mazda he wanted. Then you point out he probably wouldn't be able to get that loan. Your post did not advise him to keep the car, yet keeping the car is the conclusion he came to from your post.

Just because I was arguing with points he made in his OP doesn't mean that it isn't valid advice. You're essentially saying that no one on FWF could ever give objective advice because they have opinions. A huge chunk of the finance forum is people's opinions. What's wrong with that? People come here specifically for that.

Be honest, you just didn't like my tone, right?

Plus, can we address the fact that he was literally on the forum for 1 hour and 2 minutes? Was he really here to get the best advice possible? He picked the name "PoorLifeDecisions" and admitted in 3/4 of his posts that he has to make changes, yet he won't budge on the most obvious thing he needs to change. These posts are just as bad as the trolls. Like I said before, what I wrote was more for the FWF regulars saying he should keep the car than it was for him.
 

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