08YellowCR

Hey guys have had plenty of help in this section before with money so i figure i will post this here. Right now i have 3 vehicles. I own 2 toyota previa vans one is in good shape my GF drives the other is a beater for sure but still runs im driving that. I also have a CR but i have a loan on it. Right now i owe $19800 on it and its a 08 with 23.4k miles. My payment is $377 a month and i was thinking about selling it to get rid of my car payment and my final debt. It's the only debt i have right now i know i can get $23-25k for it with out a problem. I was thinking sell it and save all the extra money for now and put it in a couple of CDs or my money market account untill the beater previa really breaks down hopefully it would last about 2 or so years and buy something like a nice used car for say $15-20k and pay about 10-15k off of it in cash up front. Or should i keep the CR as a weekend fun car or just in case the previa breaks down before hand?? I just am thinking it would be cool to be debt free at the young age of 25 for me. Let me know what you guys think i should do in my situation thanks again

RUGBY

I am not an expert will give you my two-cents...

You don't say anything about your cash flow and if you can "afford" the CR. Having debt is not a bad thing, especially if it is manageable and current. Paying off your debt will help you build a credit score.

Selling the CR and putting the excess cash in a CD or money market will keep the money safe but will generate very little return. With a CD, you'll also be penalized for early withdrawal and if your planning on using the money for the 2nd Previa, I would opt for the money market.

Lastly, I'm very debt averse with only a primary home mortgage. The only other debt I've really ever taken on was a student loan and a car loan. Both were useful at the time they were drawn and I would do it again - - - especially if it kept me in an S.

Probably not the answer your looking for but I'm not an expert.

herminator

debt is nothing to worry about if you can afford the notes, especially if it is debt that carries a low interest rate. think about it: if you sell the car now you may actually lose money on the transaction where as if you keep it you will at least have a depreciating asset in the future.


also being young is a great time to carry debt- you can often increase your liquidity and cashflow by incurring debt in the right places. I'm 23 and I have a 14k car loan and I also borrowed against 10k of shares I have in a credit union. all of my extra money goes in to market growth funds that incur higher rates of return than the low interst my debt is costing me. in fact I loaned the 10k for precisely that reason: it was a share loan so it cost me 2.5% interest while I am making an average of 8-10% in the market. if I were you I would hold on to it for a while as long as you can afford the notes.

jemje2006

i hate you every time whenever i see you want to sell your car................

08YellowCR

LOL i know i am so back and forth on it. Well i can afford it with no problems i put about $800 away right now into savings. And $400 a month i put aside for spending so i guess its good to keep it and will help boost my credit score

ATOice

CD vs. Market...ROI

You are making ends meet, keep the car, it's emotionally attached to you!

The only debt I carry is mortgage and car loan.

9K-S2K

If the interest rate is low and you can afford it no problem then what is your concern? You won't make anything in CD's right now unless the money is tied up for years.

If I remember correctly from the last time you posted asking advice, you are in the military. You have the best job security out of any jobs out there so I see no concern with your current situation.

The only way I would buy new would be to capitalize on the 0% interest specials you hear from time to time as there is no detriment to having a car loan which isn't losing you any money.

CKit

Also consider the difference between unsecured debt and secured debt.

Debt is not the enemy. Like people said, responsible debt is a tool.

It's better to have $200,000 "debt" on a house that's worth $250,000 than have no debt and spend more per month on a rental.

And what cost enjoyment? I could eat dry white bread and water every day and save more money, too. It sounds like you're being responsible with your debt.

08YellowCR

Thanks guys yea i owe less on it than its worth so i figure its good debt. I could easy get $23k for it at the dealer and owe just below $19.8k on it right now. I am going to keep it and just have fun with her

superslows2k

good idea