[justaliv3]

Question:

Just found out that a car repair ($2100) will cost more than the car is worth (1900). I'm thinking of selling the car for scraps at $350 and then using what I have in the emergency fund ($2200) to buy another clunker. My tax refund is coming soon and its $5200. I was going to get a quick car loan maybe $3000 to buy a car now and then pay it off once my tax refund comes in. The thing is I need a car now because its my only form of transportation. What do you think?

 

[Frugal Nurse]

well.. a clunker isn't a $7400 car. You'll get a decent car for that price.

Watch out for Hurricane Sandy cast offs. Ask for the carfax report and do not accept a car orginating from the east coast.

Now for the decision. It doesn't make sense to put that money into a car not even worth it. Scrap it.

Put the $2200 down on a $7000 car and pay off the rest with the refund. Keep the $200 from the refund and the $350 from the scrap to register and insure it.

You need a car now - that's the best you can do.

 

[heyaim]

I agree! Put money down to finance the car long enough to wait for your tax return. Thank goodness you have options.

If you can, part some of the car out before you scrap. Sell the seats, doors, hood, rims, interior dash, whatever is good in the engine. We did this... Ended up getting $700 for the junk car instead of just scrap prices. In the end, a guy ended up buying what was left of the car so he could pick the pieces he wanted then scrap the rest.

Hope you find something you like!

 

[justaliv3]

I agree! Put money down to finance the car long enough to wait for your tax return. Thank goodness you have options.

If you can, part some of the car out before you scrap. Sell the seats, doors, hood, rims, interior dash, whatever is good in the engine. We did this... Ended up getting $700 for the junk car instead of just scrap prices. In the end, a guy ended up buying what was left of the car so he could pick the pieces he wanted then scrap the rest.

Hope you find something you like!

Thanks for the help. But I just found a car for $1800 that's better than my broken down car. Saving myself from having to finance.