Hi folks, long time reader and first time poster.
I own a 2010 Silverado Crew Cab with 90k miles on it. I currently owe 20,200 on it. Trade in value is about 14000 and street value approx 15500. I purchased this as part of my investment in helping a friend with a business. Long story short, business got sold and i am left with the truck. (I am glad that part is over)
Now, i have asked to be compensated for my investment that happened on good faith and was ultimately a poor choice on my part. Lessons learned. I will be receiving approx. 5k in the next few weeks to help offset the price of the car. I am thinking i might need another 1k safety to make sure i can get rid of this horrible 448 payment.
Also, i would need to purchase a new car for about 3k. (scion, toyota, etc with 35+ mpg)
So that is about total 8k of expenditures to right this wrong.
The other option, and i think i know the answer, is that i pay off some of our current credit card debt which is at 17% (approx 13k left. We have paid off about 7k in the last few months) and continue to pay for the truck through my own business as i have so far until my debt on it is more inline with what i owe. Either way i paying for it and its poor mileage.
So
20200 owed on car
approx 5 to 6k to get out of it and its 15mpg fuel efficiency
spend another 3k on a new used car with higher efficiency
Total approx 9k.
vs
Send all that money to credit debt and continue to make payments on truck through my company.
I think i know the answer, stop the bleeding now, but all the money will be gone.
Any thoughts?
( i know i am not counting lower insurance costs and higher maintenance on the bigger vehicle.)
Thanks in advance everyone.