[heyaim]

I have a 2011 car with $11,300 payoff. I have $7500 in my car fund. I'm seriously considering selling my car (I won't make anything, but I won't owe either) and buying an older car with cash. Or I can continue paying my car payment and adding to my car fund account. Doing it this way I should have my car paid off in June.
I like my car, it's gets great gas mileage. It does horrible when it snows!!!!!!

I'm anxious to get started on paying off our last debt! I want to get started on it yesterday!! But I can't until the car is paid off!

What would you do?

 

[Frugal Nurse]

I would keep the car.. because the money you paid for in the last year will have gone to waste.
If you plan to pay if off in June - what's a few more months.

What is your last debt? Is it a cc? if so, is the interest higher than the interest on the car loan? if so, you should be paying that off first.

 

[mateosbaby]

Curious about the number crunching here... (Confession: I'm good at math, but not when it comes to finances, so sorry if these are silly questions.) If you throw all the car fund to the payoff of the car, you're left with $3800 on the car loan. How fast can you pay that off? If you're paying $2260 (assuming you haven't made your Feb payment) every month in order to pay it off in June, you should be able to pay that $3800 off by April at the very latest, right? Then you can get going on debt #2.

And yes, what is the other debt? DR says to pay off the lowest balance first, so I'm assuming the next debt is more than $11,300?

 

[Ayanka]

I would keep the car. After all next time if they are having a mess in the Middle-East, oil prices will increase again and generally I don't really see them going anywhere but up on the long term. If you only have about 5 payments on the car left, it will probably better to sit it out or throw your car funds to it. After all if there is no other option and you have to sell your car due to unpleasant surprises, you will get more for a 2011 car than for a junker.

 

[heyaim]

2011 Kia Soul at 2.9%, $320 month, $11,300 payoff
2010 Camper at 4.9%, $183 month, $15,200 payoff

I've been undecided about this for quite a while. So I've been putting all our snowball money in a savings account instead of on the car loan.

Yes, if I use all our snowball money, $1000 from income tax return, $300 monthly snowball and my monthly payments the car will be paid off in June.

I think about the gas mileage...then I think about our winters. Right now if it snows I have to borrow my mom's car or have someone pick me up and take me home from work. A good set of snow tires and rims for the winter will need to be put on the Kia next year before winter hits. Hopefully that will work, we won't know til we do it. As it is right now, I get stuck if there's 1/2" of snow on the roads. That's my only issue with the car.

 

[mombottoo]

If you are able to pay off the car by June, then I would say definitely keep the car. Snow travel can be an issue with a smaller car (I live in Michigan) . Have you considered putting some weight in your trunk over your rear axle if you don't already? I have a Buick LeSabre and I put 100 lbs. in the trunk over the axle and it helps tremendously. We have to come up slight hills no matter which driveway we use which makes it a PITA in the winter time. I have used both rock salt and cat litter...that way it's something I can also use elsewhere so I'm not wasting my money .

 

[Frugal Nurse]

You're snowball is meant for the debt payoff then the savings.
Keep some savings and plunk a chunk down on your car. Although I would pay off the camper first. It's a higher rate interest. - but because it has a higher balance, you snowball the lower one first.

Hold on to your car. unless it's giving you grief, then sell it. I don't think you'll make a profit on it, as you've already noted.

It's good that you're thinking ahead and planning on being debt free! kudos to you!

With some scrimping and saving and cutting back - you can be debt free in no time at all.


Cheers!

 

[heyaim]

No, No! I have a separate emergency fund savings account. Once my snowball built to $2000 we opened a separate savings account so the money wasn't sitting in the house.

Honestly, after I got stuck in the road after a snow dusting I've never tried to drive my car in the snow again. If I keep the car, which I probably will, I will put good snow tires on and load up the back with salt or sand and see how it does. I'd rather just have a snow free winter and not worry about it.

If all goes to plan, we can have both car and camper paid off by the end of 2014. If we really tighten the purse strings we can pay both off sooner. Once the car is paid off that will free up $320 monthly car payment + $300 monthly snowball + $183 monthly camper payment to put towards the camper! I think I'm just getting to anxious to get it all done so I can start paying off the mortgage.

 

[pcaltman]

How much does it really snow out of the year? A minor inconvenience. I would keep the car, sell the camper. Good luck

 

[Frugal Nurse]

I think I'm just getting to anxious to get it all done so I can start paying off the mortgage.

Patience dear.. patience.
It's like losing weight. It seemed so easy to put it on, and so difficult to take it off. You will be debt free in no time at all. Great job on the planning!

 

[heyaim]

I know, I know! I'm usually patient...having a tough time with it right now. We try to be careful with money and not rack up to much. So I just want to see some movement!!

As for the camper...it's staying. That's our entertainment. It's our weekend getaway... Goes on vacation with us anywhere we go. We like the camper more than our house! LOL It would make it much easier getting our of debt to sell it. I'd rather sell the house...which we have talked about.

 

[Frugal Nurse]

Keep the camper. It's a frugal way of vacationing. You're not that bad into debt. No cc's lingering with a balance.. right?

 

[heyaim]

Nope! We have 1 cc we use for vacation and internet orders. But it's always paid off within a few days.

And yes, it's a very cheap way to vacation. Hubby and I went to Smoky Mountains in October for a week. The whole week was under $800. That includes fuel, campground, eating out, shopping, etc. Plus I know it's clean and I have everything with me I need! We talk about going to Cancun or a cruise for our 25th anniversary. I hate the thought of not taking my home on wheels! LOL

 

[mommy4ever]

Tires! You need TIRES> Small cars aren't bad on the snow at all. I had a Chevrolet sprint for 10 years, I live in Canada where we have snow for 10 months of the year...ick. But with good WINTER tires, not All seasons, you shouldn't have any issues. All seasons aren't great for driving on snow, there are 2 types on is rated for colder weather and better than the other, but nothing beats a winter tire. It's also suggested slightly lower tire pressure for winter driving. I currently drive a little Focus Wagon, I never get stuck, but I have good tires. Sometimes a little slow to start from a stop on our skating rink, other wise known as our streets. But I've not been stuck.

 

[heyaim]

That is my plan! Good snow tires...the kind you should only use when it's cold. Snow 10 months a year? Yuck!

 

[mommy4ever]

That is my plan! Good snow tires...the kind you should only use when it's cold. Snow 10 months a year? Yuck!

LOL.. The only month I haven't seen snow in is July, but, all other months yeah. Typically we have snow on the ground from october to April, but sometimes September to end of May.

We keep our winter tires on their own set of rims, that way it's like changing a spare tire come winter, no need to go to the shop to do it. Dh is a mechanic so he has tools, but tire machines aren't typical in family garages..lol

 

[mndtrp]

I would keep the vehicle, especially since you'll pay it off in less than 6 months.

Have you considered putting some weight in your trunk over your rear axle if you don't already?

Wouldn't this be counterproductive in a front wheel drive vehicle? Proper winter tires would be a wiser choice, have them swapped out when there isn't much of a chance of snow any more. Is public transportation available on the snow days?

 

[The Muse]

I don't see any financial benefit to selling the car.

 

[heyaim]

Wouldn't this be counterproductive in a front wheel drive vehicle? Proper winter tires would be a wiser choice, have them swapped out when there isn't much of a chance of snow any more. Is public transportation available on the snow days?

Here's the funny thing...I talked to a couple tire dealers about snow tires. They both said to put the snow tires on the back. I questioned it since it's front wheel drive. Weird, huh? So it might work.

Hubby and I talked...we are keeping the car. Paying it off in June. Then by November we will get "Good" snow tires on rims.

 

[mommy4ever]

It's actually more effective to have 4 winter tires, 2 isn't normally recommended. (dh is a mechanic), then you can also rotate them the next season and make them all last way longer.