Hi all!
Two year lurker and first time poster. In the time I found Mr. Money Mustache my DH and paid off all $20K of credit card debt, paid $10K off my student loans, got out of a $30K(!!) car loan and are up to $50K in HSA, IRA & 401K combined. (Sorry, can't help but be proud!)
I believe I make good financial decisions while balancing our other non mustachian desires (we aren't perfect). However I need help today with a decision on my old college car. Mustachian brains, UNITE.
Last year we traded an underwater 2014 Tacoma to just break even and get a new, reasonable to us car loan of $10K at a rate of 3.5% (see, not perfect). I took the "new" car as my job requires me to drive business associates often. DH took my old girl, a bluish purple '99 Toyota Solara. He is a student and does food delivery on the side.
Little about the Solara. Kbb value at $1,000. Current condition: shredded seats, loose bumper, weird rattling sound of which no mechanic can identify root cause, ultra dim headlights, broken visor mirror. It's been a reliable car for 7 years but I have but in ~$3K in non regular repairs, not including the costs I'm about to discuss.
The transmission went out 3 months ago. We had a mechanic who was willing to swap our bad transmission with a good one for $2.5K and a 1 year warranty. The car itself is worth MAYBE $1,000 when running properly. After much back and fourth we decided to do the swap. Then it was just down hill. This needed fixing, that needs replacing. Oh shoot, tires are due. Alignment bad. UGH. Adding up to another $1K in repairs. Total "invested" in the car since October is around $3,600. Now it runs. Not great, and could still use more work, but it runs.
My DH HATES this car. It's low to the ground, handles poorly, bad visibility, the works. He did go from a 2014 truck to a beater... He's been trying to remain positive for the last year and a half but can't take it and complains regularly. As a Christmas gift, and for my own sanity to stop dealing with his complaining, we found a 4x4 '03 SUV (I know, bad mustachian!) with less than 100K miles, one owner, well maintained and paid $5,000 cash.
Here's my question (FINALLY). What should I do with the Solara? It would be really tough to sell and we are likely to only get $500 - $700 for it, after I just put in $3,600 >:(
Please select an option:
1) Sell car for $600. Cry over $$$ that could have gone to my other debt.
2) Donate car. Tax deduction of probably $500. We are in 15% tax bracket so tax savings of... $75. Cry a little less over $$$ because at least I contributed to a good cause.
3) Keep car for as long as possible. We would be a 3 car household and only use the Solara for food deliver job, random trips (not long distance). Maybe put 2,000 miles on it per year. NOTE: Insurance for this car is ~$30/month liability only. Registrations ~$40/year
4) Other - please elaborate in comments.
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