Does this make sense?

posted 2 years ago in The Lounge
  • poll: What should he do?
    Sell the car!!! : (36 votes)
    95 %
    Don't sell the car! : (2 votes)
    5 %
  • Post # 2
    Member
    715 posts
    Busy bee

    BellaDee:  To me it seems like a no brainer. Sell the car, get rid of the debt. 

    Post # 3
    Member
    1209 posts
    Bumble bee

    Yep sounds like a no brainer to me…

    If he’s still hesitant you suggest a new model that’s faster/more luxurious/bigger (or whatever he enjoys in a car) than his current car in the future to persuade him!

    Post # 4
    Member
    124 posts
    Blushing bee
    • Wedding: June 2014

    Keep in mind that 0% financing isn’t what is seems to be. They just factor in the cost of the interest/financing into the price of the car. So you’re paying it anyways. 

    Post # 5
    Member
    1201 posts
    Bumble bee
    • Wedding: A very pretty church.

    Interest is where your money goes to die without buying you anything…if he can really get that much for it, it’s a no brainer.

    Post # 6
    Member
    499 posts
    Helper bee
    • Wedding: September 2014

    Sell the car, he can get a used car for a few thousand and then work on it and make it his new pet.

    Post # 7
    Member
    1392 posts
    Bumble bee
    • Wedding: January 2011

    0% interest is $16.67 per every $1000 financed. I consider that a steal of a deal. 0% financing on a $30k car would be $500. That same car with 3% interest would cost an extra $2343.67. Yikes! 

     

    With all that said, I would sell the car assuming that the interest on the school loan is more than $16.67 a month. 

    Post # 8
    Member
    2455 posts
    Buzzing bee

    BellaDee:  If i had that opportunity to be out of school debt I’d take it in a heartbeat. He could even use what’s left over as a downpayment on another car and have $200 car payment instead of a $400 loan payment if he’s worried about having a car.

    Post # 9
    Member
    2657 posts
    Sugar bee

    I think that selling the car sounds like a smarter move right now.  FI and I were a one-car household for a while and things worked out fine.  We had to coordinate our trips and errands a little more, but it was really no big deal.  It may also be worth researching the used car market for cars similar to his.  Very often, the value of cars will drop off of a cliff once they hit 100k miles.  Selling it before it hits that mark could give you a little more cash out of it than if you were to keep it and sell later.

    Post # 10
    Member
    253 posts
    Helper bee
    • Wedding: January 2015

    BellaDee:  Student debt is simply THE WORST kind of debt to be in. Even filing for bankruptcy will not exempt you from your student loans. If you have the chance to pay them off now, DO. My dad was so serious about me not having any student debt that he paid for college, and helped me pay off the $5,000 I owed on my first grad school experience (only a semester’s worth, even with a Pell Grant, can you believe it?).

    Tell him that it’s only temporary, and if you’re willing to work together, you can make the one-car situation work well. I like the idea of him dropping you off at work.

    You two must make these decisions together. You’re not doing yourselves any favors by getting further into debt even before a marriage. Starting with a clean financial slate will make a WORLD of difference, especially when/if you want to start a family.

    • This reply was modified 2 years, 5 months ago by  TheAnonyMouse.
    Post # 12
    Member
    499 posts
    Helper bee
    • Wedding: September 2014

    Why do you need to one car

     

    Debt $13k

    Car value $15 k

     

    Remainder $2k….in almost every state you can get a beater for around $4k….he could make that up in payments in less than 4 months.

    Post # 13
    Member
    682 posts
    Busy bee
    • Wedding: September 2014

    Def. sell the car .. Plus no insurance payment too! 

    Post # 14
    Member
    8425 posts
    Bumble Beekeeper
    • Wedding: April 2013

    Interest is where your money goes to die without buying you anything

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    Taiki:  +1, love this explanation

    Post # 15
    Member
    7090 posts
    Busy Beekeeper
    • Wedding: August 2012

    futuremrschristensen: While I agree she should pay them off asap, student loans are definitely not the worst type of debt you could have. Generally they don’t reflect poorly upon your credit score, provided you make the payments on time.

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