Just Me Posted February 1, 2008 Share Posted February 1, 2008 My Dh and I are avid Dave Ramsey fans. We are working down our debt - really just getting started with this, since he just started working full-time. We have only one car right now, because we gave our (very old) Honda to a couple with three children and no transportation. We will use our tax return to buy him something in the $2000 range. The question is this - Do we sell our Jeep, making about $4000, and also buy me a car for about $2000? We could then use this extra money to pay down debt. We have three children, so packing for trips will be tight. But, on the other hand, we won't be taking any big vacations until we are debt free anyway. The only other "big" travel that we do is to Dh's mom's about 2 hours away, which is do-able with a car. Buying the car will also help with gas prices being so high. But a part of me just wants to keep my big truck!! What do you think? Is this something we should do? Would you do it if in our position? Dh is in ministry, and we really want ot save to buy the house we are currently living in. Thanks all! :) Quote Link to comment Share on other sites More sharing options...
PariSarah Posted February 1, 2008 Share Posted February 1, 2008 Is it a reliable car? And is it all paid for? I don't know WWDRD, but I would be nervous about getting rid of the Jeep if it were reliable and paid for. Not only because, in general, a $2000 car is less reliable than a $4000 car, but because you never know about the car you're getting. A $2000 lemon can get very expensive very fast; a $4000 car that's been well taken care of might be cheaper in the long run. You know your car's repair record--you don't necessarily know what you're getting into with the car you would buy. That's my leaning, anyway. My motto is "The cheapest car is the one you already own. Except when it isn't." Quote Link to comment Share on other sites More sharing options...
momofkhm Posted February 1, 2008 Share Posted February 1, 2008 If the Jeep is paid for and isn't costing a lot in repair bills, keep it. Quote Link to comment Share on other sites More sharing options...
Julie in CA Posted February 1, 2008 Share Posted February 1, 2008 Dave would tell you to keep the Jeep, I think. If you were making payments on it, that would be different, and if you could sell it for a lot more money, then I'd consider it. But no, I think you should keep the Jeep. Better than I deserve, Julie Quote Link to comment Share on other sites More sharing options...
StaceyinLA Posted February 1, 2008 Share Posted February 1, 2008 is just really high in which case I might consider selling the Jeep and purchasing something for about the same amount that gets better gas mileage. I don't know what type of jeep you are referring to, but if it's a Cherokee or something, they really don't have more room than most cars. The used car market is good, and you may find a really good deal on something that has been a one-owner and well taken care of. In fact, with cash in hand, you can probably find something in the $5000 range and get it for your $4000 cash. Money talks!! OTOH, if you've had it a while, and you know it is reliable, that's a huge plus! We sold our Suburban this year and purchased a 6 years newer minivan for the same amount we sold our burb for. Our burb was in GREAT mechanical condition, and my dh was nervous about giving up that reliability, but I just hated filling the tank and it was getting uncomfortable for me to drive. I LOVE my minivan. It needs a few minor details fixed, but is in otherwise GREAT shape. I'm very happy with our decision. Quote Link to comment Share on other sites More sharing options...
Storm Bay Posted February 1, 2008 Share Posted February 1, 2008 Yes, keep it if it's reliable. I would avoid a $2000 car unless it came from a trustworthy friend, but even then I'd be concerned because as they get older they generally need more maintenance. Quote Link to comment Share on other sites More sharing options...
cricket1178 Posted February 1, 2008 Share Posted February 1, 2008 I agree that if the jeep is paid off, keep it unless it uses lots of gas. If it isn't paid off then of course sell it and get something else. Are jeeps really that roomy? They don't look like they'd have anymore room than a car. Quote Link to comment Share on other sites More sharing options...
PariSarah Posted February 1, 2008 Share Posted February 1, 2008 Oh! Just remembered a rule of thumb from Dave--your paid-for vehicles (all of them) shouldn't ever total more than half your annual income. Link to where you can hear him say the same thing. So, unless you only make $8K a year, a $4K, paid-for Jeep is not an unreasonable thing for you to own. Quote Link to comment Share on other sites More sharing options...
Just Me Posted February 1, 2008 Author Share Posted February 1, 2008 Thanks everyone for the perspective!! For those who asked, it is a Cherokee, and no they are not any more roomy than a car, however I can haul/pack more in it. When we moved, I could lay the seats down and pack tons in the back. When we went on vacation last summer, we could take tons of stuff with us that we would not be able to take in a car trunk. I really don't drive far day-to-day, and it does run well, so I think I will present your advice to Dh, and we will probably keep it!! Thanks again!!:D Quote Link to comment Share on other sites More sharing options...
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