When I typed this question, I would've said it was payments that were most expensive. Then the fan started making a clicking noise on the way to work...
I'm not as worried about what I've put into the car so far. I'm more thinking I don't have the money I need to pass the title on to another buyer--I couldn't pay the loan in full, even if I sold the car for full value. I wouldn't mind doing exactly what you suggested, but if I understand how this works correctly, that's not really an option. What am I missing?
Thanks for your help!
Well I'll walk you through our path out of a spendy car, and you can see if you can do something similar... your call. This was a years-long process.
Spendy Car - 1999 Volvo Convertible Bought in 2008 or so. The Volvo looked good when parked. And when it ran right, it was a great car. It did this rarely.
- 5 years into ownership, still owed on car (forget how much) had regular issues with the Turbo blowing up
- Spending about $1100/month on turbo rebuilds, plus insurance on convertible, plus premium fuel, plus expensive oil changes.
- Couldn't sell it due to ongoing issues (basically couldn't keep it running long enough to sell) between turbo and electric.
- Concurrently, wife was driving an older Montanna minivan, which was rotting out, but running well. The windshield wipers were unrepairable and made the van unsafe to drive.
- Traded Volvo in at dealership in Ottawa (online deal) against a Buick Allure (LaCrosse in the USA) base model ($7,500)
- Allure ran perfectly and we had no issues with it over the life of the car, but it was intensely boring.
- Sold van ($800) and replaced with Cheap 1995 GMC Suburban ($1500), and thought I could suck up the cost of gas. I was wrong.
- Sold Suburban for what I bought it for ($1500) and bought a 1981 (ancient, but awesome) Mercedes Diesel ($2000) - used the Mercedes to deliver pizzas on evenings and weekends and paid off debt, built up savings.
- Sold Mercedes ($1500) and bought 2012 Chev Sonic in 2015. ($8500)
- Traded Buick against 2009 (??) Toyota Previa also in 2015. ($10,000)
So we've gone from a fancy car and a beater van to a not fancy car and a good van.
Things I should have done different:
- Skip the suburban. I thought the gas couldn't really be THAT bad - it was. And I never needed the vehicle that big.
- Keep the Buick. The car ran flawlessly the entire time we had it. I should have sucked it up and kept driving it.