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01-25-2012, 02:16 PM #1
Should I sell our second car now?
~I'd really like some opinions on our situation. We're moving from NJ, a flat land of temperate weather to CO, a land of mountains and snow. I got my DH to agree that his Hyundai Tiburon wasn't really the best vehicle choice for the new state. I've also been wanting to go just one car. I only use the second car once a week during my hubby's working hours and that's to go to my mom's house. That won't be an option out there. I homeschool and there's a chance that there would be activities to do during the week or dental and doctor appointments to go to but we hope to live close enough to DH's workplace that he could bike occasionally to give me use of the car on those days. I like to do my errands in the evenings or on the weekends so a one car lifestyle is kinda what we're already doing. It just so happens that the Tiburon won't fit the entire family so we need the larger vehicle for that reason.
So, I'm trying to make sense of the money angle of it. We bought the Tiberon new in 2006 for $22K when all taxes, fees and financing costs were added in. A dealership has offered us $9500 for it meaning our cost was about $175 a month for it so far. If we were to keep it for another 6 years(my estimate for its life remaining), our cost per month would be $132 a month but would probably need repairs. So we could spend $3K on repairs over those 6 years to match the cost per month of the first 6 years we've owned the car. But we'll have to shell out almost $4K in car insurance over those 6 years for the convenience of having two cars. CO car insurance is fairly close to NJ's as far as I can tell.
General wisdom is that if you buy new you need to run it into the ground to get your money's worth. In this case, I think the Tiberon has held its value very well.
Our second car is a 2000 Dodge Caravan with 111K miles on it. We haven't had work on it yet and it runs well. I'm expecting another 50-90K from it. We got it for free so it'd be worth a couple thousand in repairs eventually to keep it running.
So what I'm thinking is to sell the Tiberon while the offer is so high(apparently what the dealership actually sells the car for, 120% of book value)and net $9500. Then save the $75 a month the Tib costs us in insurance/registration every month into a fund to replace the mini-van when it's on it's last legs. I'm estimating that to be about 4 years from now based on how many miles per year we put on two cars plus the cross country trips to see family. By then we'll have about $13K in the fund for a new family car.
I'm apprehensive giving up the security of the second car. I've proven over the years that it's not a need, but it's so nice to know I can escape the house anytime I want. I'm paying $75 a month in insurance/maintenance/registration for that comforting feeling.
If we were to run both cars into the ground instead, we'd get that comforting feeling and probably two more years(6 total) out of the van. By then it will have cost the lost $9500 I could have sold the Tib for($132 month), $4K in insurance/registration/maintenance for the second car($60 month estimated)and not counting any work they might need.
So if you were in my shoes, would you sell the Tiberon now or take it to CO and run it into the ground?~
01-25-2012, 02:31 PM #2
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Is it worth more to a private seller? I would sell it before you move. If you find you need a car when you get out there, you will have at least the amount you got to replace it.
01-25-2012, 02:41 PM #3
I personally wouldnt want to move to a new area and not have a car. I would want it to go explore, make new friends, get used to the area etc. However you could buy one after the move.
I'm curious why you dont think the car would be suitable in CO. I am in WI but have previously lived in CO and UT so the suitability of the car to the climate comment intrigues me.
Have you checked what your car is worth to a private party sale? The dealer offering that much makes me think it is worth a few thousand more since we know they plan to make a profit on resale.
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01-25-2012, 03:40 PM #4
~Kelly's blue book puts the value around $8200 for a trade in and up to $10500 for a private sale.
We'd still have the minivan so we wouldn't be car less. I can explore on the weekend or evenings when the hubby could go with us. I'm pretty busy at home with schooling so going out during work hours is rarely an option anyway. DH can ride his bike or take public transportation on days we need a vehicle.
This is the Tiberon:
At the time he agreed to sell his toy, we were talking about living in the mountains. There is a lot of snow and a 4WD would be a more reliable vehicle. The Tiberon actually handles unplowed flat roads very well. DH put it to the test with the few blizzards we've had over the years. NJ is always unprepared and slow to clear but DH has always been able to get to work. But we're really scared about the stories we hear about CO and don't think a little sports car will work too well if it snows often.~
01-25-2012, 03:53 PM #5
I like your general idea - for me personally, I would HATE to be without a car, but it seems like that isn't as big a deal for you.
I will also say that it depends on where in CO you are moving to as far is whether or not it's a bad car. We lived out there for a year and I had a Nissan Sentra, had absolutely no issues. Of course, we weren't in the mountains, but the whole state isn't the same as far as snow fall.
01-25-2012, 04:14 PM #6
I lived in CO and UT it isnt that bad. At least Fort Collins, and Boulder weren't.Nor was Salt lake City. You can use awesome tires and chains that are illegal her in WI. It really isn't as bad as you expect unless you are way up on some deserted mountain roads. Would dh ride bike in the winter too?
Am I understanding correctly that the dealers offer is about smack dab in the middle? If so I say go for it and save the cash to replace the van or for if you want a new to you auto after the move.
Your car is ADORABLE!!!!
01-25-2012, 04:39 PM #7
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I'd sell the car to the dealer and put the $9500 in the bank on the off chance I decided to buy another car when I got to where I was going.
Depending upon where you will be moving to in CO will be the main factor with public transportation...not all areas are equal in that department. They have decent public transportation in GR but, around here we have none.
01-25-2012, 04:41 PM #8
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Ok. I have a cold so all that math won't fit in my little brain but>>>
I am a motor city girl and the idea of being w/o my OWN car for 5 min. gives me the willies.lol And I would never want to go w/o one w/ a kid esp. a small child who could spark off a fever just like that.
I also would be afraid to depend on a vehicle that has over 100,000 on it in a new area. you don't yet have it mapped out as to where your really going to need to go. I understand the money aspect of wanting to save but kids need to go places,you'll need to hook up w/ a few friends,groups,maybe a church etc.
I know you can prob. get more for the little car in your area but i would turn around and get something used (assumibly but not necessarily)for less in that area. We did the 1 car thing for 8 months and it sucked. DH started to get resentful because i always seemed to need the car for visiting parent,shopping,and kids activities not to mention Dr. visits. JMHO tempered by the rhino virus.lol
01-25-2012, 05:02 PM #9
Knowing how resourceful you are nuisance, I'd sell it and collect interest on the monies from the sale of the car & the registration fees. However having said that, you truly have no idea of where you are going to be living yet so peace of mind is priceless right now. I'm going to suggest you hang onto it and try selling it out in CO once you know your surroundings and what is and isn't doable etc.
Have you tried checking out how much the Tiberon could sell for out in CO with your exact specs - year, miles, options and in the right area etc.??
01-25-2012, 05:02 PM #10
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We've been one vehicle for ten years now. It's not for everyone but it's saved us a fortune. Now that I need the car every day I just drive my husband to work. When I was home with the kids we would just drive him in if we had activities planned. Most places we would walk.
01-25-2012, 05:26 PM #11
from a mom point of view - home schooled or not as your kids get older there will be more things happening during the day you may want to get involved in - and especially if you have a weekend where 2 have to each go to a different thing if they do sports or even a homeschool activities .
i would hold onto it until i moved and really knew what was going on myself . unless you think you could get something reliable used for less if you got there and decided you needed something .
TBH i havent found minivans to be real great in bad weather here in NJ so not sure how it would be in CO , i had to trade a mini van for a AWD/4WD in so i could do home care ( have to go out unless its a stateof emergency when no cars allowed out and even then we sometimes will still try )
you may find you cant get a house as close to dhs work as you hope to and you need a more weather durable vehicle as the family vehicle and need to trade them both in for something else . and if the old mini van is in for repairs -how will dh get to work .
and a scarier thought - how long until your oldest child is of driving age ?
03-05-2012, 05:31 PM #12
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Trade his car for something that has 4 wheel drive which will be well suited for Colarado. And by the way, Dodge vans tend to go bad all at once when they do decide that they have had enough. So at least you would have a 4 whell drive for him to get to work in, and the van would be there for when one of the kids get sick, or needs to go somewhere.
$75 bucks is not worth being stranded at home for, but I do admire your willingness to sacrifice.
You are basing this all on your calculations of how long these vehicles will last, but the only problem is that the vehicles do not last based on calculations. I would hate to think that the only vehicle I had to depend on would be a high mileage Dodge van!
03-05-2012, 06:39 PM #13
I can't imagine being carless...that being said, I think that as your children get older and busier it is going to be a little more challenging. Do you incorporate any homeschooling groups into your homeschooling plans? It would probably be nice for the kids and you to get out and meet people once you move- I think I'd feel isolated being in a new area without a car. I guess it depends upon how much you need that money. If I was running short every month and that $75 a month made or breaked us then maybe I'd consider it. If I was going to use that $75 to save or something I wouldn't do it yet. I'd wait and see what I thought once I got there.
03-06-2012, 01:07 AM #14
I drove a mustang for a few years in Denver, and through the mountains on trips. While I managed to get everywhere I needed to, there were some pretty hairy trips. Like essentially sliding sideways UP a mountain road, because there was nowhere to stop, turn around, or do anything other than keep going. The rear tires were trying to push the car, but the front wasn't cooperating, and so the best I could do was a sort of diagonal angle to the top of the pass.
Anyway, if you are in any area of relative size, you may not need the car. Public transportation is adequate, and most places have grocery and whatnot within walking distance. Colorado is outdoor-friendly, so there are a lot of options if you don't have a vehicle.
However, since the van is almost done, and the Tibby isn't large enough, I would probably sell it. If nothing else, you could get a 4 wheel drive SUV for the amount you think you are going to sell the Tibby for. I got my pickup for ~$7,000, so that's always an option.
04-04-2012, 04:19 PM #15
If you are making payments on the car I would sell it. If you feel like you need another vehicle for during the week then I'd buy another cheap vehicle.
We own two 2000 Dodge Caravans. DH's has 190,000 miles on it, he doesn't exactly worry about taking care of it and has been driving it for 3 years, paid $1500 for it. It's been about the best automotive purchase we've made! My minivan has 140,000 miles on it and we paid $2500 for it 1 1/2 years ago.
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