Hello all,
I'm 27 and looking for some advice on what to do about an automotive debt I've mistakenly put myself into. I'll keep the story telling short...
-Ohio: Graduated college in 2013, engineering major / business minor. I thought I was a hot shot being in my early 20's making a salary in the $50,000's while most of my millennial friends couldn't find any job at all. Naturally, I bought a brand new $25,000 car. In two years, I drove it to the moon and back and accumulated 50,000 miles as well as moving to Denver, Colorado. As I'm sure you could guess, the vehicle depreciated faster than I could make payments due to the mileage.
-Colorado: After one winter in Denver, I just had to have 4WD, and of course something to put my dirtbike in and go snowboarding with. I noticed everyone and their grandmothers either had fancy trucks or lifted jeeps out here. So I traded my car in for a new F150 (funny how MMM used F150s as an example. I'm that guy.)
So now, after reading several blog posts here, as well as going back through my business education, and a Dave Ramsey book, I'm in a bit of panic mode. If I sell my truck outright to a dealer and use public transportation or street legalize my dirtbike, I'd still end up with closer to $10,000 in automotive depreciation debt. Should I do that and pay off the debt, then buy a cheap car in cash off craigslist?
My other consideration was trading in for an 05-10 Subaru to reduce the debt, but still have a reliable vehicle with 4WD.
I know this isn't an ideal situation, and I'm certainly learning the hard way, but I want to fix this and learn from my mistakes.
Thanks!