Author Topic: Beep Beep: what should I do with my Jeep?  (Read 926 times)

tshirtpreneur

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Beep Beep: what should I do with my Jeep?
« on: July 24, 2017, 12:38:24 PM »
What to do....what to do...

I have a 2011 Jeep Wrangler Sport that has been, knock on wood, a very reliable vehicle. Sure, the gas mileage is crap, but I live 2 miles from my business (which I bike to during the warmer months in Michigan) and don't drive much altogether.

It has 95,000 miles on it (it used to be my mode of transportation when I worked at an office job 30 miles away).

I owe about $5800 on it (monthly payments are $400/mo).

The KBB value on it is around $17,000.

Which means, in theory, I have about $11,000 of equity in the car. 

After a year of reading MMM, the right answer seems to be: sell it, buy a $6,000 car, and use the rest to pay down other debt (I have $13,000 of zero interest credit card debt).

But, this community knows better than I do.  What's my best bet?
 

ketchup

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Re: Beep Beep: what should I do with my Jeep?
« Reply #1 on: July 24, 2017, 01:20:12 PM »
If you don't have a specific need for the Jeep-iness of your Jeep, I'd say you're right on track.  I would take your time looking for a replacement though, as you don't need a car right this second and can therefore wait for a deal to pounce on.

I'd also look at why you have $13k in CC debt (regardless of interest rate) and take measures to not let that happen again.  Your increased cashflow by eliminating your car payment will help with that.

Sailor Sam

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Re: Beep Beep: what should I do with my Jeep?
« Reply #2 on: July 24, 2017, 01:29:51 PM »
If you love the car, like really luuuuuurve that car, AND you can pay off the 13k in cc debt before the zero interest period ends, then keep the car.

If you don't love the jeep, sell.

If you can't pay off the debt before the interest kicks in, sell.

SingleMomDebt

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Re: Beep Beep: what should I do with my Jeep?
« Reply #3 on: July 24, 2017, 01:31:35 PM »
you can give me your Jeep. ;-)
but I have this forever long commute and its the reason I don't have one (but I really want one).

hmmm... well that's cool you could use it as a tool to rid of that cc debt.
but do you plan on keeping the 6K car after you pay off that debt or looking at getting another Jeep after?
if you plan on keeping the 6K car long-term (and budget for maintenance costs) then I would say okay.
if you plan on just purchasing another Jeep like vehicle after, then I would say keep it, look into paying it off asap and throw those payments into that credit card payoff.
Do Jeeps make reliable high-mileage cars? Something else to consider.

tshirtpreneur

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Re: Beep Beep: what should I do with my Jeep?
« Reply #4 on: July 24, 2017, 03:07:24 PM »
Thanks everyone.

I definitely don't have a specific need for a Jeep, nor do I love love love the car.  I'd be just fine driving a $6k car and budgeting for maintenance over the long haul. My wife has a new car that she recently paid cash for; so we do have a 'reliable' car in the family.

As for the CC debt, 13 months ago I quit my career to launch a company and I've been leaving my cash in investments (Wealthfront) while living on the zero interest CC's (only using cash for rent & other cash-only payments). It's been a smart move financially up until this point, but now I'm approaching the breaking point (same amount of cash in investments as debt on CC's).

This is where I see the opportunity to sell the Jeep, buy a more affordable option in cash, then put the rest towards the CC debt. Allowing me to keep a bigger chunk of money invested with Wealthfront.

Frankies Girl

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Re: Beep Beep: what should I do with my Jeep?
« Reply #5 on: July 24, 2017, 03:12:32 PM »
If you already have a car in the family (your wife's) and you tend to ride your bike to work anyway... why not sell the jeep and just not replace it at all? You get the money to pay off debt and the bonus of lower insurance premiums since you will only be insuring one vehicle instead of two.