Author Topic: Horrible car financial situation/decision. Need help!  (Read 3633 times)

ecchash

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Horrible car financial situation/decision. Need help!
« on: January 12, 2015, 04:44:31 PM »
Hello Mustachians!,

Last summer, before I started reading MMM posts, I bought and financed a 2015 Subaru WRX STI (My dream car for years) for $34,700. The car is an absolute Blast to drive, but I have been learning that it really is not a daily driver and I have been having buyer's remorse. Between the oil changes, horrible MPGs, insurance premium (~$140/month), tire changes (snow tires), upcoming maintenance costs, and the advice from MMM that a Subaru WRX is one of the worst cars to own in the long run, I have decided to get rid of the car. I definitely love the car and love the driving experience it provides, but I know that selling the car is the financially smarter decision to make.

Financially speaking, I am upside down on the auto loan. I did not put money down (I was stupid), and my interest rate on the loan is relatively high ~4.3%. I pay around ~$500 a month and still owe ~$32k on the loan. I also have student loans in excess of $50k to pay. I have a decent paying job, and can budget for everything (rent,utilities,student loan, auto loan, groceries/food, etc...), and still have some money left over to put into savings. But I want to live the MMM way and get rid of any and all unnecessary costs.

I have gone to several dealerships (Subaru and non-Subaru) to get my vehicle appraised, and they're all appraising my vehicle in the high $20k's. The most reasonable offer I have received is from CarMax at $30k. My question is whether I should sell the car to CarMax and take the ~$2k hit, or to continue paying the car until the loan reaches about $30k and then try selling it privately?

Any help/advice is appreciated! Thank you!


surfhb

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Re: Horrible car financial situation/decision. Need help!
« Reply #1 on: January 12, 2015, 05:13:11 PM »
You could try to put it up for about a month to see if you get any buyers but personally id take the hit and get out now!!    Selling a car at that price will take some time to find the right buyer 

Im actually shocked how much they are offering

ltt

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Re: Horrible car financial situation/decision. Need help!
« Reply #2 on: January 12, 2015, 05:16:15 PM »
I'd also take the hit and get out from underneath this burden.  Hondas and Toyotas are always really great choices for autos.

HairyUpperLip

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Re: Horrible car financial situation/decision. Need help!
« Reply #3 on: January 12, 2015, 06:26:10 PM »
post it on nasioc or sell it to Carmax. take the hit.

sick car though man. I used to have a 2004 STi and I miss it dearly.

Exflyboy

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Re: Horrible car financial situation/decision. Need help!
« Reply #4 on: January 12, 2015, 06:41:22 PM »
Buy yourself a cheap car for cash.. pay off the remainder then hit those student loans (depending on how high the interest rate is).

there are lots of cars around for say $1000 that will give you years of reliable service.

atap

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Re: Horrible car financial situation/decision. Need help!
« Reply #5 on: January 12, 2015, 06:43:32 PM »
I am in a  very similar situation but with lower numbers all around. I put 5k down on a new car and stand to make about 1k after the loan is paid off. I'm gonna bite the bullet and sell it this month. Luckily I have about 4k I to spend on a used car. Actually looking at a Subaru wagon, though I wish I could find an old Accord wagon. I am trying to think of it as a very expensive learning experience that I will never, ever repeat. I amean finding it very hard to swallow my pride, but am looking forward to having the weight of the debt off my shoulders.

RapmasterD

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Re: Horrible car financial situation/decision. Need help!
« Reply #6 on: January 12, 2015, 07:04:36 PM »
If if was your dream car for years, how come you didn't save anything and put anything toward it? To me this is a train wreck on every level.

--Didn't put any money down.
--Crazy high interest rate.
--Car that has depreciated, no surprise, the second it left the lot.

Just get out of it ASAP and pay cash for a much less expensive used car.

chasesfish

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Re: Horrible car financial situation/decision. Need help!
« Reply #7 on: January 12, 2015, 07:10:34 PM »
Carmax immediately before they sober up

aspiringnomad

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Re: Horrible car financial situation/decision. Need help!
« Reply #8 on: January 12, 2015, 09:32:51 PM »
Carmax immediately before they sober up

Seriously. Do yourself a huge favor and take the 2k hit before Carmax changes their minds. The Subaru WRX is among the clowniest of clown cars.