Hey guys some of you know i am back and forth on keeping my CR do to needing more room was looking at picking up a fit. But i found a toytoa previa in great condition local picked it up for $1100 cash. 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 luxury car like a 328i or 335i 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 agai

 

You'll never regret being debt free

 

Quoted for truth.

With the money you make on the sale you could pick up a EF or EG hatch.

 

sell it and take the bimmer

 

i used to have a really nice car.. but what it came down too was i didn't need a nice car to impress people anymore... and the only people who actually know what an intercooler was, was actually only dudes...

i was also going out with girls that wouldn't even know what i drove untill WEEKs down the line... so thats when i made my decision and just sold everything and bought a honda fit.. one of the most mature decisions i made in my life.

 

as happy as that car probably makes you

debt free will probably make you even happier


and if debt free doesn't, then just keep funneling away $377/month and buy yourself another fun car in 5 years....

 

I was in the same boat a couple years ago. Here is the thing if you sell the car. Your going to want to buy another one, and nothing will be stopping you. I had an s2k. Sold it bought a fit. Used that for a year had it paid off. Then bought a 370z nismo. Because I didnt owe anything. So if you can resist the urge to buy something, which I highly doubt will happen. I honestly think its better off keeping the car, and paying the payments. Or just funnel most your excess cash into the principal. That way you can have a CR with no payments. That will feel better then being Debt free. Debt free Plus CR. I am working twoards paying off my 370z. Gonna take a bit longer on that one however.

You loose lots of money in retrospect everytime you sell / buy a car. So think wisely on what you want to do. I bought the Nismo because I wasnt planning on selling it in a year like I normally do. Its going to be my garage queen for my middle 20's and 30's. All in the the s2k is a great fun car. The CR is harder to find, and with the S2k being discontinued it might be worth keeping around for the long run.

 

I know what you are saying but i don't want my car to impress any one at all. Im the exact opisite really i hate people that buy cars to do that. I want a BMW because i love sports cars but im starting to grow up now so i kind of want some luxury in my car now as well. But the CR is a fun weekend car. But im sure i would have more fun debt free!!

 

Hmm good advise for sure. Yea just because you spent $10k on a turbo kit does not mean the car is worth more. In reality youre car is worth less with mods in most cases. hmm not sure about the keep buying a new car thing though. I would think a solid used car in cash would be cheaper to keep than a new car with a payment.

 

Your method of always buying new and trading in is a lot like leasing a car. The first 3 years of a car's life accounts for almost 40% depreciation. You're always going to lose money on a car, but buying a 2-3 year old car with less than 50K miles and driving it for another 150-250K is always going to be cheaper.

Examples using a 2010 Fit Sport AT:

Buying new and trading 3 years later:
$18,500 OTD - 3 years depreciation at 15% = $11,361 value of car
$7,139 net loss ($2,380 per year), not including loan interest and the dealer may give you less for it.

Another customer buying the same used Fit in the year 2013 from same dealer:
$12,000 OTD - 10 years depreciation at 15% = $2,362 value of car
$9,638 net loss + $7,500 in overestimated repairs = $17,138 total loss ($1,714 per year)

The person in the top example is probably losing out on about $600 a year for 13 years or $7,800 if they just keep buying similar new vehicles and trading them in. Furthermore, the more expensive new car you buy, the more it will depreciate, and the more loss you will take in those first few years.

 

2leg2itfit ur right in a way i was talking about a beater less than $5k total cost of the car. Like u stated if the car is used for say $20k and does not have a warranty than ur right its not worth it and is better to buy new. Also u have to consider the APR my car payment is $377 on my CR but only about $300 comes off of my loan because my APR is 5.6%. So really u would not pay off as much as the $9000 that you stated above in 3 years. But like i said i was talking about a used car for say $6k or less like my 2 previas i bought the one for $450 only had to replace the battery so far. And the 2nd previa $1100 cash. Also every one has to replace brakes and tires on there car around 3 years no matter if its new or used.

 

Ur right man the best way to buy is about 3 years old do to it allready lost most of the depreciation in those years. And i mean if ur car last to 200k miles that is around 20 years of driving u would save alot of money. But it all depends on the car if its reliable like a toyota previa one of mine has 190k miles and the other has 234k miles and these vans are known to last to 300-400k miles with only normal maintance done.

 

Debt free is an awesome thing! Part of the reason I never "upgraded" to a Ferrari or Lambo.

2 cents.

 

I guess it all comes down to how bad the car is crippling your ability to save. I'm sure that $370 payment is on top of registrating fees (totally out of control here in the LV, NV) and insurance rates. Being debt free is totally liberating and you quickly see how much less stress you have in your life when you eliminate over $400 from your monthly expenses.

My buddy was in similar situation with his RX8 and decided to unload it. It's been 3 years now and he dosen't regret it. He now has aspirations to eventually buy a older RX8 and have tons of work done to make it his own.

 

Well i still can save alot i think if i do keep the CR i can still save $800 a month and have $400 a month for spending money.

 

Imagine waking up the next day and knowing that burden is looooon gone, heck, whatever your driving for a DD can be modded a bit to keep you happy, right?

I did this very same thing about 10 years ago when I sold my 87' Grand National. Me and my two girls waved the car good-bye, they were 6 and 5 years old, I was 30 at the time, no regrets because it was the right thing to do at the time.

 

If you can save $800 a month there isnt anything to worry about. I owed 650 on one car monthly and 350 on the fit. Until i paid that off. Now its just the 650, and all the other bills that go with it. I can save about 5k a month, lol.

Buying new and selling after warranty is a good idea. As i have done this too for some time. The real benefit of this is the newness, and warranty. Getting the car no one has ever driven. If you can afford to pay for it then why not. My fit just got out of warranty a week ago. Was thinking about trading it in, but there is nothing I am interested in. That and its given me zero issues. So I plan on keeping it.

If you look at a BMW dealerships used bmw's you will find a ton of them are right at warranty miles. Because thats how people who have a little more then average funds roll. They get luxury 100k warranty and use that up. Buy new. Rinse and repeat. I used to do a lot of modding and now its gone down to just headlight blackouts and stereo upgrades.

 

Unmolested or abused S2000s are going to be rare as hens teeth some day. Think ITR. Hold on to it if it's a nice one, or you might regret it. I don't know how hardcore of an enthusiast you are though, so with something like this, you have to weigh finances and passion/interest. Being debt free sounds great, but your probably going to be in debt again soon.

On car buying; I like 2legit2fit's suggestions, but might add that a slightly used Hyundai might be one of the best financial decisions in the car buying world right now due to the long-term transferable warranty. Barring a conflict with North Korea disrupting their economy, they will take the crown soon in my opinion and that lower resale value you get now will turn around for you. The Genesis is a sweet ride.

 

As much as i would like a s2000 and am extremly jealous of you, i would say debt free instead. It feels so good to not have that extra stress.

 

Thanks for all the input so far guys it helps alot looking at all the angles for me. Right now i am leaning toward keeping it and just trying to pay it off faster say in the next 3 years. And keep it as a weekend car so i would lower the cost of my insurance.