Question:
I have a 2002 Saturn VUE, 93k miles, that maybe would bring $2500 actual trade value. However, it has a just expired vehicle inspection and I know that the computers and ignition switch and at least two tires need fixing, for around $2500.
My credit is poor (about 580 score) and I have been running one month behind on payments. I don't know whether I have to at least get past the inspection sticker to try to sell it, in which case I maybe should keep it and pay off the loan and get an '08 SUE (say one selling for $27k), or just go to the dealer with maybe $3000 in hand for a down payment and see if they will cut a deal. I know I would have to roll in the upside down amount of around $7k. I think I want a Kia Sorento EX. I hate to go in and get turned down, and also really don't want to be refinancing the residual, but I really do want a car I can depend on. Right now I rent when I go out of town. What should I do?
Answers:
Take a loss. Selling it won't be any better.
What is the best luxury car that has front wheel drive? I want status & function!?
turn that car in for a NEW car right now. get a close out model from last yearmany models this time of year have huge rebates
dude I would go for something practical
get a DODGE
Is it cheaper to buy a used car (minivan) in CT or NY?
Repair the car. You stated that you are a month behind on payments. You will have even more trouble paying for a newer car. After you repair it, work on repairing you credit score and getting it higher so that you don't pay so much for interest on the new car loan. You will also have an easier time getting approved.Where 2 search 4 private owners of used cars?
$2500 is a lot cheaper than $27K. If I was you, I would fix the one you have and keep it for another 2 years or so at least. The depreciation in that time will be far outweighed by the fact you don't have payments every month on $27K and the fact that your credit will repair a bit in that time. If your credit is weak, you should avoid credit. Fix it up enough that you can stop renting cars too.We all want a nice, snazzy, shiny new car but in reality we don't need one. Look after the one you have and buy it a few more years so you can get your head above water credit-wise. The next car you buy should be paid half by cash. If all you can afford to save is $10K, the car should be 20... the next car after that one should be totally cash. Avoid the monthly payment trap that 80% fall into. The nice car doesn't say "I've made it and I am successful" all it says is that you can carry the payments... kind of.
Take the difference between what you pay now and what you would pay for the new car and put it in the bank to save for the next one. Call it "paying forward" towards the next one... interest and credit-check free.
Good Luck.
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