What would you do?

[QurazyQuisp]

I'm currently a college student, and I'll graduate in two years. (I'm a junior, but going for two degrees)

I currently drive an '01 Focus ZX3 with 110,000 miles. It's in perfect condition, both inside and out and very mechanically sound. I purchased it just under a year ago with 98,000 miles for $3,750. After looking at the local markets and focus forums, it seems that I could easily sell it for $4,000. I got an awesome deal when I purchased it.

I am considering selling it within the next month, mainly because I'll have more money to purchase a nicer car after this summer. (I'll be making about 14,000 or so) I would sell the car for $4,000 and at the end of the summer I'd purchase a car for between 8-10k. Currently I'm thinking about a lower mileage SVT Focus.

The biggest reason I want to sell is I'd rather not have to deal with the car when it gets to the point when it's unreliable. Also, it'd be sitting at home the whole summer losing value. Not to mention I can easily get back what I paid for it, if not more.

What would you do?

 

[WTurner]

What will you use for transportation in the mean time?

I would keep the car myself. Wait until you have enough cash to purchase the new car out-right, then sell the old one. Keep the money from the old car as an emergency repair fund for the new car.

 

[QurazyQuisp]

Originally posted by: WTurner
What will you use for transportation in the mean time?

I would keep the car myself. Wait until you have enough cash to purchase the new car out-right, then sell the old one. Keep the money from the old car as an emergency repair fund for the new car.

I won't need transportation during the summer, I'll be close enough to where I'm working that I can use public transportation/bike.

At the end of the summer, I'll easily have enough money to buy the new car, even without selling the old one, but if I'm going to purchase a new car at the end of the summer, it doesn't make sense to hold on to something that I need to pay insurance on and watch it devalue while I'm gone.

The other thing I can hope for is that the car will last a good 20-30 thousand more miles before it starts giving me real trouble so I can sell/give it away and purchase something when I get a real job. (And invest the money I make this summer)

 

[Zenmervolt]

Very very honestly, if the car is truly in excellent condition now you probably have another 100,000 miles (and at least another 50,000 miles) in it before reliability actually begins to suffer.

That said, if you know you aren't going to lose money on it, then the worst that can happen is that you sell it, decide later you don't want to spend so much on another car, and buy another $4,000 car that's in good condition, in which case you are only out your time.

In the end though, I think that the best course of action is to keep the car you have and invest what you earn this summer. I have to admit, however, that the advice I'm giving is not advice I've taken.

ZV

 

[jagec]

1)14,000 isn't really enough to justify buying a new car for a college student...IMHO at least. I mean c'mon, you drive an 01, that's practically new. The newest car I have EVER owned was a 1990. I currently drive an 89.

2)110k in perfect condition? Why are you worried about reliability? That thing should run for decades yet. Once Ford finally got past the initial recalls, the Focus became a very solid car.

3)The value that your current car will lose over the summer will be significantly less than the value that a newer car will lose over the same period. Buying newer/more expensive cars isn't a way to avoid depreciation.

But that's all IMHO, and I'm a self-admitted cheapskate.

 

[QurazyQuisp]

Originally posted by: jagec
1)14,000 isn't really enough to justify buying a new car for a college student...IMHO at least. I mean c'mon, you drive an 01, that's practically new. The newest car I have EVER owned was a 1990. I currently drive an 89.

2)110k in perfect condition? Why are you worried about reliability? That thing should run for decades yet. Once Ford finally got past the initial recalls, the Focus became a very solid car.

3)The value that your current car will lose over the summer will be significantly less than the value that a newer car will lose over the same period. Buying newer/more expensive cars isn't a way to avoid depreciation.

But that's all IMHO, and I'm a self-admitted cheapskate.

I wouldn't be purchasing a brand new car... I just I should have made it clear that it'd be a new car to me. Something with lower miles (40-50k)