To save money in the long run would you sell your car for less than you owe on it?

[Jumpem]

Thinking of going going to Carmax to sell my truck. Looking at trade in values on Kelley Blue Book it looks like they would give me anything from what I owe to 1-1.5k less. Depends on whether they consider it good or fair.

So would you sell them your vehicle if it cost you a bit out of pocket in order to pocket the $500/month it would cost you to keep it?

I got the truck when my fiancee had a job that required travelling so we needed two cars. Now we don't and the truck barely gets driven. I hate paying on it to sit in the driveway.

 

[Sphexi]

Probably not, depends on the location. Here on V.I. cars last forever, I've seen 84 diesel rabbits going for $3500 or so. My wife's 2003 Protege5 has maybe $1500 left on it for the loan, it'll be paid off by December, yet we could get $11,000 or so for it since it has under 40k miles on it, prime condition, no accidents, nothing. Next year we'll probably trade it in for about $10k, get something slightly bigger since we'll have two kids and two car seats, and pay a lot less per month for a loan than we are now.

Edit:

Also, spreadsheets are nice. Calculate out how much you'll pay for it over the life of the loan, plus what it'll be worth as a trade-in/sale at that point. Compare that to what you can sell it for now if it's under the loan cost and the hit you'll take, go with the lesser of the two losses.

 

[MixMasterTang]

Yeah I'd take a hit if it would save me money in the long run. Look at the taxes, insurance, etc. I would say though unless there is something wrong with your truck I wouldn't accept under the "Good" Kelly Blue Book value.

 

[JulesMaximus]

Doubtful.

 

[mugs]

ninja edit: nvm

 

[Jumpem]

Originally posted by: MixMasterTang
Yeah I'd take a hit if it would save me money in the long run. Look at the taxes, insurance, etc. I would say though unless there is something wrong with your truck I wouldn't accept under the "Good" Kelly Blue Book value.

It has a couple cosmetic blemishes. It had a factory tonneau cover that rubbed on the back of the cab a little. I am going to try touch up paint on it. And my fiancee didn't latch the tailgate one time and it fell open going down the road; so one side of it sticks out maybe an eigth of an inch.

The dealer's bodyshop said $600 to fix it up, but my fiancee doesn't want me to spend that money just to sell it.

 

[Jumpem]

nm.

 

[nonameo]

Just don't drive?

 

[MixMasterTang]

Originally posted by: nonameo
Just don't drive?

It will still depreciate and he still pays taxes and insurance on it not to mention he's paying interest on the loan, so there is no financial benefit to keeping it.

 

[Jumpem]

Originally posted by: nonameo
Just don't drive?

We commute together in my gf's car. The truck gnerally stays parked in the side of the driveway all the time. It gets driven occassionally, but its not needed.

 

[ponyo]

Depends how badly I needed the cash flow.

 

[Jumpem]

Originally posted by: Naustica
Depends how badly I needed the cash flow.

I don't need the cash terribly, though I have uses for it. Its just that I will continue paying insurance and making payments, while the truck continues to depreciate.

 

[Capt Caveman]

From this thread - http://forums.anandtech.com/me...id=38&threadid=2098317

Sell the car and let your gf drive!

 

[Jumpem]

Originally posted by: Capt Caveman
From this thread - http://forums.anandtech.com/me...id=38&threadid=2098317

Sell the car and let your gf drive!

:laugh:

 

[Capt Caveman]

Honestly, doesn't seem to make sense to keep it. Like you said, gotta think long-term.

 

[RossMAN]

Originally posted by: Jumpem

Originally posted by: nonameo
Just don't drive?

We commute together in my gf's car. The truck gnerally stays parked in the side of the driveway all the time. It gets driven occassionally, but its not needed.

Sell it and take the 1-1.5k hit. Although I would attempt to sell it privately by:

1) Not going to CarMax or any other new/used car dealer.
2) First get it professionally detailed, well worth the $150 or so.
3) Take at least 4 pictures, 2 inside and 2 outside.
4) List it in your local newspapers classified ads.
5) List it online with pictures on CraigsList.org, cars.com, autotrader.com, etc.

Using those simple yet effective methods I was able to sell our '94 Toyota Corolla for $1,000 more than a local car dealer was offering.

 

[nonameo]

blah blah blah... I get it now.

 

[Jumpem]

Originally posted by: RossMAN
Sell it and take the 1-1.5k hit. Although I would attempt to sell it privately by:

1) Not going to CarMax or any other new/used car dealer.
2) First get it professionally detailed, well worth the $150 or so.
3) Take at least 4 pictures, 2 inside and 2 outside.
4) List it in your local newspapers classified ads.
5) List it online with pictures on CraigsList.org, cars.com, autotrader.com, etc.

Using those simple yet effective methods I was able to sell our '94 Toyota Corolla for $1,000 more than a local car dealer was offering.

I did all those you mentioned in number 5. Didn't list with the nespaper because they wanted an absurd amount to only list for two weeks.

I suppose I should be patient, but I listed it a couple days ago, and no one has called yet.

 

[edro]

Definitely sell it privately.

Also, if your payments are $500 and you are going to lose $1-1.5k, you will be even in a few payments.

Negative equity in a car is one of the worst wastes of money.

 

[Jumpem]

Originally posted by: edro
Definitely sell it privately.

Also, if your payments are $500 and you are going to lose $1-1.5k, you will be even in a few payments.

Negative equity in a car is one of the worst wastes of money.

Which is why I wouldn't be terribly upset having to do that.

I want to just see what Carmax offers, but its a 240 mile drive.

 

[RossMAN]

Originally posted by: Jumpem

Originally posted by: RossMAN
Sell it and take the 1-1.5k hit. Although I would attempt to sell it privately by:

1) Not going to CarMax or any other new/used car dealer.
2) First get it professionally detailed, well worth the $150 or so.
3) Take at least 4 pictures, 2 inside and 2 outside.
4) List it in your local newspapers classified ads.
5) List it online with pictures on CraigsList.org, cars.com, autotrader.com, etc.

Using those simple yet effective methods I was able to sell our '94 Toyota Corolla for $1,000 more than a local car dealer was offering.

I did all those you mentioned in number 5. Didn't list with the nespaper because they wanted an absurd amount to only list for two weeks.

I suppose I should be patient, but I listed it a couple days ago, and no one has called yet.

Our newspaper was affordable, I think $25 for 2 weeks with online access as well. The newspaper has a website which posts pictures. Our Corolla sold within 3 days.