Author Topic: Newbie and need help! should I sell or keep my cars?  (Read 878 times)

mmjuarez

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Newbie and need help! should I sell or keep my cars?
« on: October 18, 2016, 09:45:16 AM »
Hi all! So here is my dilemma. I am 31 years old and wanting to retire no later than 60, the earlier the better. Anyhow, I love cars! Turbo'd Subarus are my weakness. Technically I have 3 vehicles, one which my partner drives and is considered "hers" even though it is under my name.

Here's the list:
2009 Subaru WRX original loan $25,792. Owe $15,662 for 3 more years @ 3.49%/monthly $469 54k miles (I've been offered $14,000 by dealerships for purchase)

2008 VW GTI original loan $7900. Owe $5140  for 2 more years @4.09%/monthly $201

2004 Subaru Forester XT own out right, bought for $4500 although I put some work into it and could possibly sell for 9k according to local Subaru enthusiasts. 189k miles/rebuilt engine

Ok, so that is a break down of what I owe etc. I do not plan on getting rid of the VW although I wanted to give an accurate view of my car loans.
A little more about me. Even though cars are my weakness I feel as though I make up for my financial mistakes in other areas. I own 2 homes, one is a permanent rental and I make a positive of $375 a month from that, monthly mortgage is $830. The home I reside in, I rent out rooms and pay $550 on my mortgage of $1450.

I do not know if it is guilt on my mind, because I want to be financially fit and possibly retire young, or if I am actually doing "ok". I have played with the idea of selling one of my Subaru's and getting a cheaper Subaru less than 2k to use as my daily. Or should I get rid of both and get a cheaper Subaru? I live in Colorado so I prefer the AWD, I commute anywhere between 18-35 miles one way a day for work. All my cars use premium gas and synthetic oil because of turbo. Honestly the Forester XT was a spontaneous buy. I recently broke my ankle, and while sitting at home I decided to buy a fun car to fix up and make go fast, I know... bad decision.

My question is, do I sell one of the Subaru's? Do I get rid of them both? Do I keep them since I am doing "ok", since I have rentals?  I look forward to all advice. Again, my goal is to retire young. 31 female needs your help please!?
« Last Edit: October 18, 2016, 12:03:30 PM by mmjuarez »

notactiveanymore

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Re: Newbie and need help! should I sell or keep my cars?
« Reply #1 on: October 18, 2016, 11:11:45 AM »
Since you're not going to sell the VW and you're underwaterish on the '09 and since you definitely seem to want to keep at least two cars, I'd recommend selling the '04. I know the interest rates on the other vehicles do not rise above the 4% over the treasury mark or whatever, but personally I hate car loans and those are pretty high rates for these days. So I would take the 9k or whatever you make from the sale, and pay off the VW then put the rest toward the '09 loan. All of a sudden you've freed up an additional $200 in cashflow (plus whatever the insurance was on the '04) and you're also no longer underwater on the '09.

Now this is all said without knowing your full financial picture. We have no idea if you're doing "ok" simply because you have two mortgaged homes with one making a marginal return. Maybe you make enough that the cars aren't a big deal if that's what you want to prioritize.

Jack

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Re: Newbie and need help! should I sell or keep my cars?
« Reply #2 on: October 18, 2016, 12:00:13 PM »
Ditch the 2009 WRX; keep the 2004 Forester.

And you should sell the VW too. Deal with it.

If you're a "VW person", replace it with a Mk4 (or older) GTI or Golf TDI. (Note: older TDIs are IMO a good "mustachian/enthusiast" choice because they're still turbocharged and respond well to modding, but have lower running costs. For example, they still use synthetic oil, but it's relatively-cheap Shell Rotella T6 and it's on a 10,000 mile oil change interval. And by the way, TORQUE.) Otherwise, switch to a non-German brand and get a Miata or a '90s Civic hatchback or something.

(Note: as the owner of a TDI and a Miata, I speak from experience.)

mmjuarez

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Re: Newbie and need help! should I sell or keep my cars?
« Reply #3 on: October 18, 2016, 01:02:51 PM »
I really like your idea theotherelise. I actually never thought of doing this! I will definitely take this option into consideration.

Meaning "ok", after all bills are paid, I have a remainder of $2,369 to do whatever with. But to be honest I have been playing catch up on Credit Card bills, which are almost all paid off. I know, I know, pay off my credit card bills ASAP! I got one more left.