Howdy all,
I've just been convinced that I should get a more fuel efficient car (and a bike), so I'm hoping for some sound advice. I have a 2005 Mustang, but due to many ignorant decisions, I now have negative equity. These are my thoughts, all of which include riding a bike:
1. Keep car (high insurance & loan not preferable)
2. Sell car, pay difference, take out loan for economic vehicle (But then I have a car loan again)
3. Save cash until I can afford to: Sell car, pay cash for economic vehicle
Car Loan Info
Interest: %4.65
Original Loan: $16,000
Current Owed: $14,500
KBB Private: $13,500
KBB Trade-in: $11,000
Monthly Budget
Post Tax Income: $3,400 *Majority tax free anyway due to Military BAH/BAS
Rent: $850
Phone: $88 *Should be reduced to $75 after Military discount, looking to lower further
Internet: $88 *Includes TV package, also reassessing speed requirement
Insurance: $105 *Will go down with purchase of different vehicle
Utilities (Elec. only) $90 *Bought a clothes drier, and turned off the heat due to beautiful Albuquerque weather!
Food: $200 *Still trying to figure out how to eat Paleo as a single guy
Car Loan: $300
Student Loan: $450 *Consolidated $23,000 Federal @ 6.5% to USAA @ 2.99%
I’ll be flying to visit family on the east coast for Christmas, so whatever I do will probably have to wait until afterwards. So, what’s the verdict? Can this only be fixed via time machine?