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Input into car decision- asking for thoughts.

August 4th, 2014 at 07:42 pm

HI all

Been trying to figure out the car situation. been hard since I am feeling frozen with all this stuff in the air.

ANyway I own 2 cars (and only need and want to afford one)

2008 Tahoe LTZ- worth $20-25k
2011 Genesis (rear wheel drive)- worth $22k

I owe approx $17k on the Genesis. Tahoe is free and clear.

I am so far ahead on the genesis that I do not have to mmake payments for a year

I see two options.

1. sell both (GROSS $44k), payoff genesis ( $17k).. have $27k and buy a cheap but good car to last me 3-5 years.. 2007 Camry or similar Nissan Altima $10,000 or less..

RESULT, $15k extra savings, no debt and paid off car that will last for 3-5 years.. get a higher quality used car then..(homes paid off etc)

2. sell Tahoe ($22k), keep Genesis but pay it off..

RESULT- 2011 car and $5k to savings?

Thoughts?

FACTS

I LIKE my cars and like driving a nice car, but can foresake that for a few years
Even though it seems like forever now, I am sure I will find a job in or near Naperville (less driivng)
Genesis is rear wheel drive so does not do well in deep snow... how much deep snow am I goign to be drving in? I already decided I am NOT driving to Lincolnshire in deep snow (some other employees gave me support on this)
Tahoe guzzles gas but is fun, does well in snow and I love it
If I can not get the car I want . I want to spend the LEAST amount I can for a car that will just least 3-5 years and save/invest to make the sacrifice worth my while
I am feeling strained w these cars and the 6 homes and loan up in the air
the 6 homes and loan is likely to resolve and smooth out in a few months
Any car I get will be FRONT wheel drive.

I can get a Camry w between $85-100k miles for $7-10k

Thoughts?
1. sell now, both? one?
2. wait to sell tahoe for winter time
3. wait on all to see how job situation clears up?

5 Responses to “Input into car decision- asking for thoughts.”

  1. Another Reader Says:

    That's a tough one. How much driving are you doing with the new job? Do you need the Tahoe for your non-profit (I use my SUV to transport rescues)? Will you be able to handle the snow on the streets and highways with either car?

    I think it's difficult to find a good used car. In your shoes, I would probably sell one, pay off the loan, and go from there. If I still thought the car caused a financial strain in a few months, I would re-think the situation.

    Around here (SF Bay Area) you can pick up a brand new Camry LE for around $18k plus tax and license at a couple of the local dealers right now on weekend sales. There are big incentives on that car now. I might consider that as an alternative. You can expect 150k miles of relatively trouble free driving from that car.

  2. creditcardfree Says:

    I really like the first option, but I think I'd start first with selling the Genesis, get that payment and debt off your plate. You don't want this car for winter driving, just be done with it now! Once you have done that wait a month or two and see how it feels to have one car and give yourself a little more time to think about what you want and what to spend.

  3. Rachael777 Says:

    Forgot to point out. the Tahoe gets about 1/2 the gas mileage as the Genesis..I drive 80 miles a day and am estimating w the car I will be paying $80 a week in gas.. $320/month..double that to $640 or even $500 for the Tahoe.. the Tahoe was never bought as a commuter car.

    Another reader.. I am determing if I am closing the not for profit or not.. so not sure tahoe will be needed for it.. I drive 80 miles a day to and from work

    Job market has slowed down considerably but I am confident i will find another job.. there are jobs out there (Naperville area) but right now appear to be none.. I feel good I will find a job.. may take 6 w4eeks (shortest) may take longer. if I get to winter.. likely wont be changing until next year

    PRAYING for sooner.. 6 weeks and trying real hard.. adjusting my resume to up my skill set. I DO get calls but all are for Northern burbs or Chicago so far.. been asking for local and they say there are none (righit now) and things as a whole have slowed a bit but they say 3rd quarter is the best time to find a job. Two big employers in town Blue Cross, BMO Harris.. all ahve pending jobs that have not been 'released' yet. I am 'in' w their main contracting firm just waiting.. there are other firms.. MCDonalds.. oakbrook has pending jobs. not released..

  4. creditcardfree Says:

    If you have a payment on the Genesis, once you sell you won't have that and can apply to gas while you are looking for a new vehicle...which probably should be sooner than later because of the gas mileage. Just change to a less expensive, gas friendly vehicle. You only need one!

  5. scfr Says:

    Keeping yourself safe driving in the snow has to be a priority. What are your options? Are you allowed to put on studded snow tires in the winter? I suggest selling both of your current vehicles and getting a snow-safe, more fuel-efficient, less expensive used vehicle. A 2nd option would be to sell the Genesis now, keep the Tahoe through the upcoming winter, sell the Tahoe in the spring and then by the used car (to give yourself more time to think and not have to stress the car decision right now with so many other things going on.)

    The real estate debt you have has an investment purpose. The vehicle debt you have is just money out the window. My 2-cents is you should get rid of that vehicle debt.

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