A Would "what Dave Ramsey say"...question??

[blessedx5]

We have quite a bit of debt to pay off so we aren't looking to ADD to the debt.

 

Our Caravan is a 97, we have had some problems with it over the last few years, biggest expense being a transmission 3 years ago. Now we are having another problem, one that needs to be addressed asap. We have not had it looked at yet, but will soon. I am just trying to prepare myself to spend $$$$ on getting it fixed AGAIN!!

 

We could handle a small car pmt to get a newer car (NOT NEW) but really don't want to since we are trying to pay off a big amt of debt. I also know that we could have a car pmt and STILL wind up with repair bills on top of it.

 

We simply don't know what to do.... potentially put hundreds of $$ into a 1997 van to repair it or buy newer and potentially STILL wind up with repair bills along with a car pmt.

 

Paying cash outright for a newer car isn't doable in the time frame we would need another car either...

 

Buying a newer car and having a car pmt would be hard to do ALSO because we don't go much at all... my van sits most of the time... and is only driven a couple times a week at best... I really would hate to make pmts on something that sits so much..KWIM?

 

Wise advice would be appreciated..

 

Thanks

Debbie

[Night Elf]

Well, Dave Ramsey would avoid payments at all costs. He'd suggest getting another job to save cash quickly using that money along with selling your old car to get another car.

 

It wasn't feasible for us either, so we got a car payment. And then we were forced to get a second car payment. So we went from only a mortgage to 2 car payments and a credit card debt of $3,000 in an 8 month period. Yikes!! I suppose making one bad decision sets us up for making others. But hey, it is what it is and we're making due. It does fit in our budget but we've had to cut back on some of our fun spending. But we are still putting a little extra on our mortgage. We are very determined to get that paid off well before the 30 year original plan. Also, DH is putting some extra on both car payments to cut down that length of loan as well.

[Mejane]

I think it depends on the amount of the repair. If it's in the $1000s, I might consider buying a good used car instead. If it's in the $100s and the van could run for another year, I'd probably do that. (Actually did do that. My van was 14 years old when we finally gave up repairing it and got a new car. :))

[elfgivas]

fwiw, if you only drive it a couple of times a week, i'd be realllllly tempted to drive it into the ground and then not replace it at all. use the money you save in insurance and gas and repairs to pay down the debt faster. you haven't said what you use it for, but most things can be carpooled or taxied or moved around to be done together for way less than a car will cost you.

 

brainstorming:

do you have someone you can car-share with? i did this for two years and it worked really well. the first year, i owned the car and two of us shared it. the second year, the other person owned the car and two of us shared it. it worked for us.

 

do you live somewhere that has zip-cars? my SIL does this instead of owning a car now.

 

is there a teenager or university student who would love to earn a bit extra driving you the couple of times a week you need it? my friend did this when her mom lost her license, and it was a gift for everyone in the end.

 

is there family and/or friends nearby who would barter a homecooked meal or childcare for a drive?

 

could your dh carpool on those days so you can have the car?

 

good luck!

ann

 

ps.. we've owned two caravans, the first a '97 and the second a 2002. if you read the repair record on the '97s, its dismal. so you could pay to fix it this time and it would be broken again quite soon. does it have 150,000 miles on it yet? for our two, that seemed to be the magic number after which all else just fell apart one piece at a time.... ie. i'm not thinking that paying more than $300- to fix it will be worth it.

[Pam L in Mid Tenn]

I don't know what Dave would say, but..... You really can't make a decision until you know how much it will cost to have it repaired. The repair might only be a few hundred dollars and that might not be worth a car payment. IF the repair would be several thousand dollars then getting another better car might be worth it.

 

How would you pay for the repairs? If you have money to put in repairs, could you not put that same money on a better car??

 

We've got old cars too. Two of which are broken right now .:(

I understand. Old broken cars are the main reason I've had to go to work part time. I've got to work in order to pay for repairs on my van.

[merry gardens]

We have quite a bit of debt to pay off so we aren't looking to ADD to the debt.

 

Our Caravan is a 97, we have had some problems with it over the last few years, biggest expense being a transmission 3 years ago. Now we are having another problem, one that needs to be addressed asap. We have not had it looked at yet, but will soon. I am just trying to prepare myself to spend $$$$ on getting it fixed AGAIN!!

 

We could handle a small car pmt to get a newer car (NOT NEW) but really don't want to since we are trying to pay off a big amt of debt. I also know that we could have a car pmt and STILL wind up with repair bills on top of it.

 

We simply don't know what to do.... potentially put hundreds of $$ into a 1997 van to repair it or buy newer and potentially STILL wind up with repair bills along with a car pmt.

 

Paying cash outright for a newer car isn't doable in the time frame we would need another car either...

 

Buying a newer car and having a car pmt would be hard to do ALSO because we don't go much at all... my van sits most of the time... and is only driven a couple times a week at best... I really would hate to make pmts on something that sits so much..KWIM?

 

Wise advice would be appreciated..

 

Thanks

Debbie

If you only drive it a couple times a week, do you really need a car? Could you drive your husband to work a couple times a week on the days you need to car, use public transportion or do something else? That would help you avoid debt and save money on car repairs, car payments, and insurance on a vehicle you only use a couple times a week at best.

[AuntieM]

Dave might ask you about your emergency fund. That's what pays for car repairs, or, if you know it's inevitable, you should have a line item in your budget for auto expenses, be it repairs or a stockpile for a new vehicle.

 

Transportation is one of the "four walls," along with food, shelter and clothing. You get those needs covered (not lavishly, but sufficiently) before paying out on debt (aside from your house note, that's always a priority as it's "shelter"). You can do your best to negotiate other consumer debt payments, but you must provide for the 4 walls first. Those are the things that keep the family safe, running, and able to generate future income.

 

With regard to your present car situation, I would start stockpiling cash for the car fund and drive that caravan until you can truly afford to replace it with a good quality used vehicle (or til it just flat out dies - the more time you have to set aside cash, the better). But that's just me, you may choose a different option. I think the temperamental vehicle you know is perhaps better than the vehicle you don't, kwim?

[FriedClams]

I would rather be a one car family than have a car note.

 

That being said, I would go with the stockpile funds since you know an emergency is coming and then get ready to repair or replace the van. Get a couple of estimates - often it's not as bad as you think (or way worse and that will help with the decision). Also - tell everyone you know that you need a cheap car. God may bless you abundantly by waiting and working through someone in your community to get you the car you need.

[blessedx5]

thanks ladies.... we DO need the van running or another car that will hold all of us.... DH's car will NOT. Right now we are in a down time, there will be some soccer for the next 8 weeks but if the van isn't running we won't all be able to go, there is also church. So the NEED for a car that we fit into is a must at times.

 

We mainly use the van whenever we want to go somewhere TOGETHER.... otherwise I don't drive it much at all, if I go alone or with 1 or 2 of the kids we take Dh's car. We do have co-op 2 days a month but I think we have worked that out for DH to work at home those days so we can take his car.

 

Dh cannot carpool, his hours are ever changing, and he works TOO FAR away for us to take him.... It would be a good 3 hours a day of driving him to and from work:001_huh:

 

I am hoping it won't cost too much to repair and we can drive it for another year at least...

[alpidarkomama]

Even if it's $1,000 to repair I would do it. Probably even for $2K I would do that to spare the expense and trouble of a new-to-you car. We've done that for several years. We always buy 8-10-year old Honda or Toyota minivans. We've never spent more than $5K for a car, and the monthly cost of owning our cars has been pretty minimal. Especially with the last one! It was totaled in a storm and the insurance company - after much haggling - paid us the same that we had paid for the car three years earlier! All of the damage (minus a broken rear window) was cosmetic, not structural, so we drove it around for another year after fixing the window for $200. Then we pocketed the insurance money and after we moved across country it nearly paid for our current car that is 4 years newer (upgraded to a 2001!). Crazy.