Hey guys,
First post so please be kind! :)
I'm having a slight dilemma working out how to tackle my car debt.
Summary of situation:
Purchased the car at $28,000, fully financed on a 7 year loan at 8.95% (yes stupid I know, young and excited uni graduate...)
3.5 years later I find MMM, car is now valued at $20,000 and I've started attacking the loan aggressively. December 2015: loan is $18,000 owing, now: $13,000 owing (so yes I've attacked it quite aggressively with cost cutting and selling off useless assets).
I've made the decision to pay the loan down to $10,000 , sell the car at its current market value ($20,000) and purchase a $10,000 car. Debt gone, happy days.
The small issue is I have JUST dropped $2,000 into a major service on the car, and selling it now I feel that the $2,000 in value I have just put into the car (plus knowing its mechanically sound, plus the emotional attachment of the $2,000 'investment') is going to be lost and I'm having a hard time swallowing that. Should I cut my losses and sell, or factor this cost in and hold the car for a more extended period of time while paying off the debt?
Can anyone offer some sound advice / mindset approach to this that might help put some clarity over it?
Cheers
James
Perth, Australia