Jump to content

Menu

Those of you who are financiall minded...


Recommended Posts

I would like your opinion on how to deal with this. I have to remind myself that this is a public forum, so I don't want to give out too much information, but I really could use some help, so here goes:

 

We have a paid off domestic vehicle. It is fine, but unreliable in terms of needing mechanical work. :glare: We have a very reliable mechanic who only does what is necessary and charges very fair. Bottom line: we trust him. He recommended we get rid of the vehicle as he said that it will cost us a lot in repairs over time. To be fair, he says this about almost all domestics, but maybe ours more than most, I'm not sure. We had to budget approx. $250/mo to cover the costs of repairs and maint. for this van. every month. yuck.

 

At the time we were getting financial advice from a VERY reputable and wealthy advisor who told us to get a newer, import model. We did. He said to take the $250 that we put aside each month and put it into the payments of our LOC to pay off the newer vehicle. He said in the long run, this would put us ahead financially. Ok. We did. We got a fantastic buy on an import and stayed within what we could afford. Both our mech and advisor were pleased with our purchase.

 

Fast forward to today... This isn't the issue, but we haven't been able to sell the domestic model- though we've gotten busy and sadly we forgot about it. Our fault, anyways, no biggie.

 

Something very drastic has come up that requires us to spend a lot of money. We have an emergency fund set up- this would drain our emergency fund. Not. What I want to do. I can't ask the advisor we spoke with before. Here's my dilemma:

 

Do we:

 

b) sell domestic (it's been tough so far) and take the balance out of emerg. fund - this, of course, leaves us with not much of an emergency fund since likely we'll have to take a big loss on this vehicle to make it move in the time we need it to

 

c) sell import (pay off LOC, which isn't much), use the money for our drastic situation - this, leaves us with our original situation which both the mechanic and advisor told us to get out of initially. I hate the thought of so much of our monthly income going to van maintenance, kwim? The import has also lost A LOT of it's value- more than the other in the time since we purchased it.

 

So... any ideas? TIA

Link to comment
Share on other sites

If you're paying that much for maintenance, then you essentially have a car payment each month. That, to me, means it's not "paid off" nor ever will be.

 

Yup. That was our reasoning for purchasing the import in the first place. We've just been totally blind-sided by this current situation. It's hard to remove ourselves emotionally and make a rational decision. We couldn't trade the domestic in in the first place or we would have and had the import paid off too. But then, I guess we'd be in the same place- use emergency fund or take out an LOC. ahhhh. I just want to pull my hair out.

Link to comment
Share on other sites

Sell the domestic. If you're paying that much for maintenance, then you essentially have a car payment each month. That, to me, means it's not "paid off" nor ever will be.

 

:iagree:

 

I think it is really the best solution. When you tried to sell it was the price realistic?

Link to comment
Share on other sites

You said that "something drastic came up" - that is what an emergency fund is for. Spend it and then start to build it up again.

 

:iagree: with this advice. I'd also sell the domestic car and get what you can for it. There's no point in having it just sit there, and you don't want to keep putting money into it.

 

Susan

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...