Author Topic: Should we buy different vehicles or not?  (Read 1411 times)

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Should we buy different vehicles or not?
« on: May 12, 2013, 11:48:31 AM »
We can't decide whether or not we should sell one or both of our cars and replace them with used fuel-efficient models. Would so appreciate advice from the experts!

A brief summary:

income: $289k/yr + potential for up to $100k bonus/yr (this is all pre-tax) + $30k/yr rental house income
41% of gross salary going to pre-tax investments ie. deferred comp, 401k
$350k in retirement
$180k mortgage @ 3%
$100k personal loan @ 2%
own 3 homes
credit cards at $0 every month

Husband drives a 1999 Toyota 4Runner to work which is 2 miles round trip (can't get him on the bike, saving that for another post) as well as to the airport once/week (35 miles round trip)
Wife drives a 2004 Acura TSX for kids' activities and errands etc, we live in the suburbs.

We don't have a huge stash of extra cash laying around and would like to avoid the huge upfront investment of buying two new cars, even if they are more fuel efficient and will help us save in the long run.

But if we could sell both cars and replace them using only proceeds from the sale, we'd be open to it. Also, we homeschool and right now we need two vehicles. Would love to go down to one vehicle when we reach FI in 5 years or so.

Any thoughts?