Financial Decisions...selling a car

[Mentos]

Happy Monday everyone.

I will try to keep this short: my pregnant wife was laid off due to the virus. My wife made significantly more than I do, so even with her collecting unemployment, our budget has changed a lot.

Her plan was to take maternity leave plus extra time off when we have our son. She will seek employment by the time our son is 1.

I’m fine with that because I want her to be able to do so. Luckily, I’m still employed and currently getting a little overtime each week. I am a little worried though because my company has made a lot of changes due to economy. I’d like to say my job is secure, but can never be 100% sure.

My wife and I have tightened up our spending and do have a 6 month energy fund. We do have two newer vehicles less that a few years old. I’m thinking of getting selling mine. I owe more on mine (2016 Grand Cherokee Laredo) and hers is nicer (2017 Escape titanium). I was offered almost payoff for mine, and I’m fine with driving a beater for however long it lasts.

Would you keep both cars, or sell one to further tighten up expenses?

 

[Blk04L]

What's the current note, and how much left?
Any Jeep issues up till now?

Guess it'll just come down to how much you can save after your bills are due.
Are you barely clearing expenses?

 

[Mentos]

What's the current note, and how much left?
Any Jeep issues up till now?

Guess it'll just come down to how much you can save after your bills are due.
Are you barely clearing expenses?

My note is 350 monthly, still owe about 16k. No real issues aside from weeping power steering rack (40k miles).

Wife owes about 13k on hers, note about the same. No issues with hers. (50k miles)

Our expenses are manageable now, I’m just trying to plan for the future if the economy tanks again and I lose my job. I’d like to have more cash on hand. More piece of mind I guess.

 

[GOTSVT?]

GO COCKS!

 

[Blk04L]

My note is 350 monthly, still owe about 16k. No real issues aside from weeping power steering rack (40k miles).

Wife owes about 13k on hers, note about the same. No issues with hers. (50k miles)

Our expenses are manageable now, I’m just trying to plan for the future if the economy tanks again and I lose my job. I’d like to have more cash on hand. More piece of mind I guess.

So, at least under powertrain warranty for a bit longer.

What would be your budget for the beater? Pay cash, or a much smaller note?

I get it, when I had my first kid, I sold my truck due to the surplus of equity in it, drove an old fusion and saved up quite a bit as my wife was going to be at home/we would be on one paycheck.

IMO, you got the 6 months savings(energy?), and the note isn't outrageous. I guess IMO just keep on thinking on it. If you love the Jeep, maybe just see how the next few months go. If it looks shakier, then maybe sell it for the beater.
For me, I found it nice having both my and her vehicles as solid options to transport the kid around, and having somewhat newer vehicles due to safety features in case of an accident.

 

[Mentos]

So, at least under powertrain warranty for a bit longer.

What would be your budget for the beater? Pay cash, or a much smaller note?

I get it, when I had my first kid, I sold my truck due to the surplus of equity in it, drove an old fusion and saved up quite a bit as my wife was going to be at home/we would be on one paycheck.

IMO, you got the 6 months savings(energy?), and the note isn't outrageous. I guess IMO just keep on thinking on it. If you love the Jeep, maybe just see how the next few months go. If it looks shakier, then maybe sell it for the beater.
For me, I found it nice having both my and her vehicles as solid options to transport the kid around, and having somewhat newer vehicles due to safety features in case of an accident.

Sorry, meant 6 month “emergency” fund.

The Jeep is ok...don’t love or hate it. If I bought a beater, it would be cash from my own savings. $4000 budget.

I need something to get me to work daily. Any travel with child would be in wife’s car primary.

 

[HEMIHUNTER]

Sell it and get the best $4000 beater you can.
Maybe when your kids a toddler keep the beater and buy a toy?



Sent from my iPhone using svtperformance.com

 

[me32]

Sorry, meant 6 month “emergency” fund.

The Jeep is ok...don’t love or hate it. If I bought a beater, it would be cash from my own savings. $4000 budget.

I need something to get me to work daily. Any travel with child would be in wife’s car primary.

Since the wife is not working, would it make sense to just keep one vehicle for the time? Sell the jeep and keep just the escape?

 

[TerminatoRS]

I vote for letting go of the Jeep especially if you've got an easy opportunity to do so. It won't be any easier if your economical fears become reality. There's a big difference between selling because you can and selling because you have to. Avoid the stress and panic. I think the fact that you're considering it with your family's future in mind is wise and responsible. If we were talking about a rare vehicle, I might be apprehensive, but the Jeep is easily replaceable if the future shakes out positively for you. I just sold a car because a friend wanted it, I hardly drove it yet I was paying for it each month. Not mention we had four cars for two people. No child on the way, but the adult in me knew I should seize the opportunity and do the responsible thing. Honestly, a month later, I don't regret it at all. I essentially gave myself a $500/month raise, shaved $1200 off my car insurance tab, and dumped almost $10k into my savings account. I don't live paycheck to paycheck, but the added cushion during times like these certainly makes it easier to sleep at night. My two cents...

 

[jmsa540]

Op, sorry to hear about wife. So unfortunate!

Sent from my SM-G892A using the svtperformance.com mobile app

 

[ford fanatic]

I would definitely sell one, use part of the emergency fund to pay off the other, then start banking all of your cash...

 

[VenomVeins]

What kind of 'Beater' do you intend to buy?

I ask because there's no guarantee that something won't go wrong and cost $$$ on the beater after your initial $4000 investment.

It might be in your best interest to keep the Jeep until the warranty expires, then dump it. Jeeps are a pretty easy sell.


Hope everything gets better financially, brother.

 

[hotcobra03]

Things aren’t looking promising

I would keep the one that suits your needs for a child.

 

[Blk04L]

What kind of 'Beater' do you intend to buy?

I ask because there's no guarantee that something won't go wrong and cost $$$ on the beater after your initial $4000 investment.

It might be in your best interest to keep the Jeep until the warranty expires, then dump it. Jeeps are a pretty easy sell.


Hope everything gets better financially, brother.

That's what I was leaning on too.

Last thing he needs is a beater that blows a major part due to the last owner not giving a **** about maintenance. Maybe he can get lucky on getting a good car at a good price. Or maybe it's a heap of shit that has snake oil in it to sell it before it shits itself.

If he's owned the Jeep from the get go, he knows how well it's been taken care of from day 1. And it's almost payoff on the Jeep, so it sounds like to get rid of the Jeep he may have to pay a small amount off to get out from the loan.


OP, have you tried test fitting rear car seats in both vehicles? I've had a rear facing car seat in a Jeep GC and you don't lose much leg room up front. Not sure how much rear space you have in the Escape.

 

[buffalosoldier]

If you bought a beater you could spend $350 a month on repairs, a reliable car at your payment is not unreasonable. Or sell it and become a one car family for a year or two.

Sent from my SM-G975U using Tapatalk

 

[IA Shelby]

I would sell the new car and buy something that is reliable in the 7-8 range. Nothing sucks more than worrying about Money. You want to be able to enjoy your new child. Kudos to having saved up money for an emergency fund. Most people don’t.

 

[sleek98]

I bought a $700 2003 Honda accord 3 1/2 years ago and have put $963 in repairs over the last 33,000 miles.

If you are just driving it to work and back get a beater and keep the nicer car for your wife. I quit driving my truck to work just so I could save the miles on it when I got the Accord I am now getting ready to sell my truck since I dont like paying for it to just sit there. When you give zero ****s about where you park or what happens to the junker its kinda freeing.

 

[MG0h3]

I was an auto tech previously so the beater route works great for me.

Paid 1300 for an 02 Focus 5 yrs ago. Two front tires and a timing belt so maybe $350 in 5 yrs.

If you aren’t mechanically inclined this may not be the best route.

You can buy a brand new car for like 17k now can’t you? Payments should be small.


Sent from my iPhone using svtperformance.com

 

[BigPoppa]

Getting rid of debt is never a bad idea.

If you can get payoff for one, do it. Put the money saved aside into savings for now. Don't worry about rolling it over to pay off the other vehicle, because if something happens and it gets repossessed before you paid it off, all the extra money you rolled into it is gone.

 

[Massie02GT]

Add another vote for selling it.

If it’s not something that brings you joy daily (you said you don’t love it or hate it) then why hold onto it, especially with uncertainty in the near future economy wise.

Sell it and pick up (like someone else said) the best beater you can find.

I’ll put it this way - now that you’ve thought about selling it, you’ll never stop thinking about selling it. Your power steering weeps now? Wait till it completely shits the bed. You’ll be looking at a repair bill thinking “man...I shoulda sold it x months ago.”

Sell it, pay cash for the beater, and roll however much you’re comfortable with into your wife’s payment to get rid of that debt quicker. Once you’re car payment free, and feel you’re able, look for a toy or a replacement for the beater.

I recently got rid of my project 02 GT. While it was paid and technically not costing me anything, it was a financial burden because I was planning a build. I sold everything I had and don’t regret a single second of it. Had that car for 15 years, too...