Trade-in or Keep?

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I've had the suspension checked, due to the fact that this car saw 100K highway miles in 4 years, the suspension really didn't take much of a beating. The only thing I had to replace was a lower control arm. I don't think the suspension needs much attention.
 
Originally Posted By: Throt
My payment is less than $200 a month, so I could pay this car off long before the 5.5 years is up, which I have full intentions of doing. I'm going to start doing double monthly payments. APR is 3.96%.

So what is the currently outstanding loan amount? About $11-12K? If you up your monthly pmt to $500, you can pay it off in 2 years or so.

Quote:

Definitely keeping it!

Good decision. It sounds like it's a perfectly good car. Why would you ditch it unless you hated it. Your mpg is fine.
 
Originally Posted By: Quattro Pete
Originally Posted By: Throt
My payment is less than $200 a month, so I could pay this car off long before the 5.5 years is up, which I have full intentions of doing. I'm going to start doing double monthly payments. APR is 3.96%.

So what is the currently outstanding loan amount? About $11-12K? If you up your monthly pmt to $500, you can pay it off in 2 years or so.

Quote:

Definitely keeping it!

Good decision. It sounds like it's a perfectly good car. Why would you ditch it unless you hated it. Your mpg is fine.


Just a hair over 11K left on it. Might not have been the best purchase but at the time it was within my budget, had a good reviews online and I fell in love with it on the test drive. I love the car, just wish it was a tad easier on the petrol. I could've gotten a cheaper, older, smaller car but I didn't. Live and learn I guess.

I'm taking Finance for my minor in business this summer, maybe I should've taken it sooner!
wink.gif
 
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Originally Posted By: Throt
I could've gotten a cheaper, older, smaller car but I didn't. Live and learn I guess.

If you have a long commute, you might just find yourself miserable in a small car, as someone else pointed out earlier. Older car = more repairs and more down time, so that's a trade off as well. Don't beat yourself up. Just do everything you can to pay it off early and then keep making payments to yourself instead of buying another car.
 
If your goals are that you want the new car in order to save money on commuting costs; you are better off spending your time finding a carpool.

Commute costs/day are now halved.
 
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Originally Posted By: Throt
Originally Posted By: Vikas
Originally Posted By: Throt
My payment is less than $200 a month, so I could pay this car off long before the 5.5 years is up, which I have full intentions of doing. I'm going to start doing double monthly payments. APR is 3.96%.

Definitely keeping it! Thanks guys!
I am suspecting that the loan you have on this does not allow pre-payment. Most used car loans when originated at the dealers are like that. Please prove me wrong by saying that you took a loan from your local credit union and there is no pre-payment penalty.


There is a pre-pay off penalty but only a measly $150. I did the amortization, I have to pay it off 8 months early to save enough interest to cover that $150.


Don't pay it off early......Put the extra money in savings. Drive the car at least until you own it outright. Then, you will not pay the $150 penalty, and you will have a few grand in the bank.

It is amazing how much harder it is to waste money, when you actually HAVE it, rather than making payments of money you don't have. (Read that last sentence twice.....It is not intuitive, but it is the secret to financial independence.)
 
Originally Posted By: Throt
I'm new to all this stuff. The Taurus was my first car purchase so I appreciate the responses.

The Taurus gets probably 26-28 on a good day. I was thinking of getting a Cruze which gets 38.


60 miles at 27mpg is 2.22 gallons per day.

60 miles at 36mpg is 1.67 gallons per day.

The difference is .55 gallons per day. At $4 per gallon it will take you 1590 days to make up the $3500 (and even much longer if gas prices stay low!) That is more than 6 years of work, without vacation, and 95000 miles.

I say keep the Taurus and extend your OCI with a good synthetic.

edit: sorry so late to the party, I see you already use M1 EP and are keeping it....
 
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Originally Posted By: millerbl00
Its like you are stalking me!!!


Originally Posted By: mrsilv04
Originally Posted By: millerbl00
Keep the Taurus. The Cruz ecotec will not last half as long as the old school Taurus


Do you ever *read* what people actually post?

Or do you just skim over everything, make assumptions on what you thought was written, and then comment on what you assumed was there?



O.k. I'll help you. It doesn't matter what your name is, when you make an uninformed, ignorant post, you get what you get...he doesn't have an "old school Taurus" It is a 2010 for goodness sake. That is what he is referring to.
 
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how in the world did you buy a five year old Taurus with 100K miles and still owe over $11K on it? yes, I am harping on you but you need lessons in used car purchase and personal finances.

"I fell in love with the car"

I have heard that often and that is the downfall but in this particular case, it would be first time when somebody said that with respect to 5yr 100K Taurus.

Is that a SHO? Then you are forgiven!
 
Is public transportation an option for you? Taking the Metrolink train in to work (45 miles ea way) saves me a ton of money on gas, parking and vehicle maintenance.
 
Nothing wrong financing a vehicle if its new and has lots of warranty. Your mistake was financing a vehicle that is already mostly used up, now your married to it.

Throw in the fact that you drive a lot which is always expensive.

Hope the new job pays well!
 
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Thank you all for your input. I really appreciate it. I'm young and gotta learn. You definitely saved me from making another financial mistake. I'll pay this thing off asap and then keep making the payments into my savings which will be used for a new one.
 
Originally Posted By: Clubber_Lang
A good personal philosophy is to save, and be able to pay cash for car purchases. Popular culture will tell you it is "normal" to make car payments. The only thing car payments do for most people is ensure that they are a wage slave to a material possession that constantly declines in value.

Youd be suprised how fast you can put away $5000, and just how dependable of a car that can buy you if you know how to shop.

Read The Total Money Makeover by Dave Ramsey. Seriously, it can change your life.



If he reads the book he needs to ignore about half the advice in it. Except the part about keeping his current car.
 
Originally Posted By: Throt
Thank you all for your input. I really appreciate it. I'm young and gotta learn. You definitely saved me from making another financial mistake. I'll pay this thing off asap and then keep making the payments into my savings which will be used for a new one.


The other thing people haven't mentioned is that your loan term might be too long. I take it you took out a 6 year loan? You should have just taken out a 3 or 4 year loan and put down 20%, then you wouldn't be upside down on the loan. By stretching it out to 6 years, you ended up buying more car than you could afford. The best position to be in would be to pay cash for a car and have that cash just be a small percentage of your net worth (like single digit).
 
Originally Posted By: Throt
My payment is less than $200 a month, so I could pay this car off long before the 5.5 years is up, which I have full intentions of doing. I'm going to start doing double monthly payments. APR is 3.96%.

Definitely keeping it! Calm down everyone!
smile.gif


Thanks guys!


I'd make the min payment for a few months while socking away as much as possible into savings, that way a repair fund is started. Once greater than 2-3k, split the diff and start paying extra on the principle. When up to say 5k in savings you could afford to replace the car, or do a major repair or three, thus at that point you could stop saving and pay as much as possible. Then go back saving once done.

If this is highway miles then sixty a day isn't that bad. Car loses all value to anyone else, but it retains value to you, as it is a proven vehicle.
 
Ok, I think you are making an uninformed, ignorant post!




Originally Posted By: ryansride2017
Originally Posted By: millerbl00
Its like you are stalking me!!!


Originally Posted By: mrsilv04
Originally Posted By: millerbl00
Keep the Taurus. The Cruz ecotec will not last half as long as the old school Taurus


Do you ever *read* what people actually post?

Or do you just skim over everything, make assumptions on what you thought was written, and then comment on what you assumed was there?



O.k. I'll help you. It doesn't matter what your name is, when you make an uninformed, ignorant post, you get what you get...he doesn't have an "old school Taurus" It is a 2010 for goodness sake. That is what he is referring to.
 
Originally Posted By: millerbl00
That car sell for around $5000 around here. $11000 is a little high.


I did a fast look up at kbb, 2010 SEL with 106k, no options, excellent condition tradein was 8.5k. I don't know the exact nature of the car but I find it hard to swallow a five year old car going for 5k. Not unless if its beat or otherwise undesirable.
 
No market for it. Sold mine with 60000 miles for $6500. Maybe the market is cheaper here. No one uses the KBB around here.
 
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