Car/Vehicle dilema..

[Hudson]

Unsure how to approach the current situation with our vehicle.

To put things in US terms it has done approx. 180, 000 miles and unfortunately due to pre-mustachian habits I still owe $2000 US on it.

It now needs some repairs in order to maintain its road worthiness (I have not got a quote for these yet) .

Selling it may get me $500- $700 US.

My dilemma lies in that I don't have a lot of money to my name to pay for repairs.

I could…


a) sell it and keep paying back the loan (be vehicle less…not such a desirable option)
b) fix it by getting some form of loan and keep paying it off
c) sell it, keep paying it off and look to get another vehicle.

In an ideal world I'd have saved enough to be able to pay cash for a replacement vehicle when the time comes.

Currently I have $70 to put towards the repairs.

Vehicle in question will be paid off by october this year

[firewalker]

Wait a minute! 180k. Thats all? And its only worth what? Please explain.

[Hudson]

it's a 94 Toyota…I fuss the price is an indication of what the market is willing to pay.

[southern granny]

Can you sell a vehicle that you still owe money on? You can't do that in the U.S.  You have to have a clear title before you can transfer it to someone else.

[2Birds1Stone]

Wait a minute! 180k. Thats all? And its only worth what? Please explain.

Its a Bicycle ;)

[firewalker]

Ok, a '94 Toy. So whats in need of repair that would require a loan? 

[WhatIsFrugalAfterAll]

You can't sell a car that you still  have a loan on

[Hudson]

Ok, a '94 Toy. So whats in need of repair that would require a loan?

Sadly at this stage anything the car needs doing would need a loan...I have approx $70 US to put otwards anythign related to the car.

[Syonyk]

What does it need?  A lot of repairs can be done cheaply by yourself or with the help of friends who work on cars.  $70 buys a surprisingly large amount of parts, and if you have a friend willing to work on cars for a nice homecooked dinner or something, it might be a lot less.

[otter]

Unsure how to approach the current situation with our vehicle.

To put things in US terms it has done approx. 180, 000 miles and unfortunately due to pre-mustachian habits I still owe $2000 US on it.

It now needs some repairs in order to maintain its road worthiness (I have not got a quote for these yet) .

Selling it may get me $500- $700 US.

My dilemma lies in that I don't have a lot of money to my name to pay for repairs.

I could…


a) sell it and keep paying back the loan (be vehicle less…not such a desirable option)
b) fix it by getting some form of loan and keep paying it off
c) sell it, keep paying it off and look to get another vehicle.

In an ideal world I'd have saved enough to be able to pay cash for a replacement vehicle when the time comes.

Currently I have $70 to put towards the repairs.

Vehicle in question will be paid off by october this year

I do not think that taking out a loan to pay for repairs would be a smart idea, unless possibly this would allow you to sell it for significantly more money and pay off that loan amount immediately. I am assuming that the repairs are required to maintain your ability to continue to legally drive it. Is there any sort of online barter network where you live, such that you could trade work on your car for some skill that you have?

In the US, you can indeed sell a car you have a loan on - the buyer pays off the lienholder and the title is transferred to the buyer. This may be the case where you live as well.

[southern granny]

Unsure how to approach the current situation with our vehicle.

To put things in US terms it has done approx. 180, 000 miles and unfortunately due to pre-mustachian habits I still owe $2000 US on it.

It now needs some repairs in order to maintain its road worthiness (I have not got a quote for these yet) .

Selling it may get me $500- $700 US.

Vehicle in question will be paid off by october this year

I do not think that taking out a loan to pay for repairs would be a smart idea, unless possibly this would allow you to sell it for significantly more money and pay off that loan amount immediately. I am assuming that the repairs are required to maintain your ability to continue to legally drive it. Is there any sort of online barter network where you live, such that you could trade work on your car for some skill that you have?

In the US, you can indeed sell a car you have a loan on - the buyer pays off the lienholder and the title is transferred to the buyer. This may be the case where you live as well.

OP says he still owes 2,000 on it and can only sell it for $700.  Not enough to pay off the lein, so I think he is stuck with it.

[Le Poisson]

Canadian experience here, and possibly not money smart.

You can sell a car you have a loan on. What you do is take out a personal line of credit (unsecured) equal in value to the car loan - in this case $2000. Pay off the loan with the PLC.

Apply for a 0% for 90 days Mastercard for $10,000 Pay off the loan with the mastercard. There is no charge to consolidate loans to the card, and the PLC allows you flexibility to buy time to move the loan over. If you are smart you will find a Mastercard with some kind of bonus miles or whatever.

Sell the car. Pay down the Mastercard with proceeds of sale. You now have 80 days to find the outstanding cash. If you fail, move it back to the PLC at 3% and continue to pay it down.