After reading some of the MMM posts (I started with the first post and am still making my way through) I started thinking about selling my current car (I would need to replace it with a used car, but maybe not right away). I was hoping that someone here could help me with understanding the reasoning and the math, without punching me in the face too hard.

Let’s start with the bad news… I financed 100% of a new car. From reading the blog, I know that it was a stupid decision. But I would like the numbers to help me understand just how stupid it was.

Here are the stats:

Car: 2015 Hyundai Accent GLS

Amount Financed: 18,266.55

Principal Balance (as of 12/11/16): 14,001.97 (which is way more than the car is worth)

Monthly Payment: 332.70

Interest Rate: 3.49%

Hypothetically, if I sell the car for $9000, I’d still owe about $5000, which I could pay, but that’s nearly all my savings at this point. Between my car payment, car insurance, taxes/registration, and gas, my average monthly car spending is around $500 (so I’d make up the $5000 in 10 months if I went carless). This doesn’t count maintenance costs (I’m unsure how to compare maintenance on my current car to what I would need on any used car that I get. I have not yet learned how to maintain my own car, so for the sake of comparing the new car to a used one, let’s assume I would still take it somewhere for the maintenance.)

Now that I’m typing this, it doesn’t seem like I’d be able to afford buying a used car outright (depending on what I get). But I’m hoping you guys will be able to prove me wrong. I’m not too picky about the next car I get; I’d like something reliable (to help avoid maintenance costs) with good gas mileage.

Even though I feel like I put a lot of information in here, I’m sure that there is probably other information that is necessary, so I welcome any questions you have.

Thank you for any help you can give me. I really appreciate it.