Hi All,
I have a 2012 Chevrolet Impala LT with 68,000 miles on it. The Impala is 300 hp, V6 beast. Interest is 4.89% through ALLY. I purchased the vehicle in November of 2012 and got a 6 year loan. I financed $15,839 -- this includes the warranty and the cost of the vehicle.
Currently OWE: $7,083.00
Fuel Economy: 18 City, and 30 Highway
I drive a little over 14,500 miles per year.
I have gone back to school, so school and work account for almost all the miles. My parents are allowing me to live with them for free(while attending University), so moving closer to school and work is not an option. BTW, I think it is a safe assumption that living rent free is cheaper than not owning a vehicle.
Question 1: Does it make sense to sell/trade-in the impala and purchase a used,Mr.-Money-Mustache recommended vehicle like the Mazda 3, or some small, fuel-efficient hatch-back that he recommends?
Question 2: I currently pay $1256 per year for auto coverage through State Farm. Should I drop full coverage and go with liability only? I am a single guy in his late 20's. Do I need a certain amount of money saved up to cover potential repairs due to accidents? I am starting to save, but as of now I only have $1000 saved up in an emergency fund.
Thanks in advance for the help!