Author Topic: Vehicle Question  (Read 5230 times)

b4u2

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Vehicle Question
« on: January 15, 2014, 01:52:11 PM »
I need a Suburban. I've heard the arguments but I have my reasons. This is the question I need advice on.
I currently own a 2005 Chevy Suburban Z71 that PP lists at around 10k. I owe about 10k on it. I found a 2002 Z71 with nearly same features little less miles listed for 6K.

Should I try and sell my 2005 and purchase the older one?
I have cash to buy the older one (might be able to talk seller down), but a lot hinges on selling mine and getting close to what I owe on it.

Thegoblinchief

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Re: Vehicle Question
« Reply #1 on: January 15, 2014, 02:13:00 PM »
How much do you need $4K? To my mind, it's small enough amount of savings that I'd stick with the car you know versus buying what might potentially be a car full of mechanical problems.

Not trying to be antagonistic, just curious: WHY do you need a Suburban?

b4u2

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Re: Vehicle Question
« Reply #2 on: January 15, 2014, 02:19:27 PM »
I have 3 to 5 kids plus my wife. We camp a lot and ride a Harley. The suburban hauls us all plus a toy hauler and the Harley. I have a journal and the 4k difference would be nice. I have accepted the fact that I am in debt and I am working to pay these off and not selling them. Since the 2 suburbans are very similar I figured this might be a good route to take and cut some cost.

Home Stretch

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Re: Vehicle Question
« Reply #3 on: January 15, 2014, 03:47:16 PM »
I'm going to agree with Thegoblinchief - I think losing out on the investment or debt payment potential of $4k is worth having a car you actually know the history of.

You said the $4k difference would be nice and that you are in debt. Again, not trying to be antagonistic at all, but is it possible you could relieve yourself of the Harley habit and maybe some other material goods to free up the cash? I'm not a biker myself, but aren't Hondas, Suzukis, etc a lot cheaper and more efficient?

theSchmett

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Re: Vehicle Question
« Reply #4 on: January 15, 2014, 03:56:08 PM »
I'd ask the seller of the old one will take a deposit and sell yours first. Explain you want the deposit back if you don't sell, and the seller can sell to someone else bit needs to give you some fair warning

if you are towing bikes and toys etc... your finances are probably in fine shape, your business.

But why pull the bike? Is it somehow not ridable?

yyc-phil

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Re: Vehicle Question
« Reply #5 on: January 15, 2014, 04:06:47 PM »
I have 3 to 5 kids plus my wife. We camp a lot and ride a Harley. The suburban hauls us all plus a toy hauler and the Harley. I have a journal and the 4k difference would be nice. I have accepted the fact that I am in debt and I am working to pay these off and not selling them. Since the 2 suburbans are very similar I figured this might be a good route to take and cut some cost.

I had a giggle when I read "3 to 5 kids". I won't elaborate, but when someone asks me how many kids I have, my answer is "4 to 6 kids", which make people wonder if they heard correctly LOL...When the kids were young and we did a lot of camping and living in the Arctic, a full-size 7-passenger 4WD truck like the Ford Expedition or Suburban was not a luxury but a necessity to haul us all with our gear and bring us to port in safety and comfort on our small roads and trails in the summer, and the ice road in winter (check out Ice road truckers, that's where I live, and Alex Deborgski is my neighbour. No further comment about him).

b4u2

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Re: Vehicle Question
« Reply #6 on: January 15, 2014, 04:22:40 PM »
My wife's 3 kids live with us and my 2 kids are only with us part time. We camp as a family and the wife and I go to Sturgis. We used to tent camp but that got really old. Last year was the first year we had the toy hauler and drove to Sturgis. Hated driving instead of riding but the comfort once we got there was very nice. Especially since this ended up being a cold year with a few hail storms.
We tend to camp as a family so everything goes lol.

golfer44

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Re: Vehicle Question
« Reply #7 on: January 15, 2014, 04:35:02 PM »
I'd be pretty tempted to go for it, but make sure you have a trusted mechanic give it a very thorough once-(or twice)-over.


I know you didn't want to start a debate on this, but it's inevitable, so here goes... generally speaking you should buy a car that fits 90% of your needs. For example, I have a 4 door sedan that is great for everything except driving in the snow. It snows once in a while here (mid-atlantic region), and when it does, I'll either stay home or suffer through 15mph in the slow lane. I could use the excuse of oh, hey, I need an all wheel drive monster because it tends to snow in the winters... but then I'm over-buying, and I've got too much car.

It might be worth it for you to check out a gas efficient, cheap, minivan/wagon/big sedan that'll fit MOST (not all) of your needs... and then the once or twice per year you need to go camping, maybe rent the suburban from Enterprise for 80 bucks a day. Just food for thought!

_JT

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Re: Vehicle Question
« Reply #8 on: January 15, 2014, 05:03:54 PM »
Keep in mind the soft costs associated with buying/selling a vehicle. Title/registration can easily be four figures, depending on where you live (lots of places it's way less, of course), and you'll want a mechanic to look at it. So, if you buy for 6k, pay 500 for title/registration and 200 for a mechanic, your 4k profit is down to 3200. And that's if you're able to sell you car for exactly what you owe, which since you don't have a buyer is also somewhat iffy.

Not saying don't do it; a few grand is a few grand. But be smart. A better plan would be to keep your current car, sell the Harley to get a cheaper bike, and be out of debt immediately. Hauling a motorcycle across the country in a car that gets barely 15mpg so that you can park said bike on the sidewalk where other people can look at it is pretty comical from a mustachian perspective, especially for someone who's here because they're in debt.

Greg

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Re: Vehicle Question
« Reply #9 on: January 15, 2014, 05:13:37 PM »
... generally speaking you should buy a car that fits 90% of your needs. For example, I have a 4 door sedan that is great for everything except driving in the snow. It snows once in a while here (mid-atlantic region), and when it does, I'll either stay home or suffer through 15mph in the slow lane. I could use the excuse of oh, hey, I need an all wheel drive monster because it tends to snow in the winters... but then I'm over-buying, and I've got too much car.

This is a really great way of stating this.  I know too many people who drive a giant truck all year so they can tow their water toys a few time in the summer, etc.

b4u2

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Re: Vehicle Question
« Reply #10 on: January 16, 2014, 07:44:48 AM »
I knew the comments would come eventually lol. I actually ride my Harley. I really only drive the Suburban in the winter or trips with the family and I can't ride. I was explaining my need/want for the suburban and looking for advice to potentially save $4k.

Greg

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Re: Vehicle Question
« Reply #11 on: January 16, 2014, 08:46:39 AM »
How long could you go without a Suburban?  I ask because if you don't have the cash up front to buy the older one, you should sell yours first then shop for the new older one.  Hope that makes sense.

b4u2

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Re: Vehicle Question
« Reply #12 on: January 16, 2014, 08:56:42 AM »
Well right now would be a problem. To/from work plus picking kids up after school. I have the cash to buy older one.

NinetyFour

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Re: Vehicle Question
« Reply #13 on: January 16, 2014, 09:30:44 AM »
Sorry, but you lost me at "I need a Suburban."

prodarwin

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Re: Vehicle Question
« Reply #14 on: January 16, 2014, 10:00:58 AM »
Sorry, but you lost me at "I need a Suburban."

This.  I'm quite sure a minivan would haul your Harley without issue.

b4u2

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Re: Vehicle Question
« Reply #15 on: January 16, 2014, 10:20:08 AM »
Sorry, but you lost me at "I need a Suburban."

This.  I'm quite sure a minivan would haul your Harley without issue.

I expected comments like this. Yes a minivan would haul (with a trailer) my Harley. I'm done camping in tents and have no interest in hotels. Like I said I was asking if my plan made financial sense.

I am striving to be debt free with suggestions on this forum but at the same time I want to enjoy certain things in life as well. I do not see myself being a true mustachian but still achieving my goals with dedication and perseverance. I also do not intend to add to my current debt and have a good plan in place to eliminate debt. It may take me 5 years to reach my goal but it is possible and that is what I am working on.

Greg

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Re: Vehicle Question
« Reply #16 on: January 16, 2014, 10:26:37 AM »
Looking back at your original question.  You want to sell the one you owe 10k on for about 10k, then go out and spend up to 6k on another one.  Wouldn't it make more sense to put the 6k toward the newer one you owe on?

10k debt -10k at sale + 6k for other one = 0 debt.
10k debt -6k cash = 4k debt.

OK, maybe your idea is better.  Similar vehicle, no debt load. I say go for it.

Daleth

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Re: Vehicle Question
« Reply #17 on: January 16, 2014, 10:31:24 AM »
I'd be pretty tempted to go for it, but make sure you have a trusted mechanic give it a very thorough once-(or twice)-over.


I know you didn't want to start a debate on this, but it's inevitable, so here goes... generally speaking you should buy a car that fits 90% of your needs. For example, I have a 4 door sedan that is great for everything except driving in the snow. It snows once in a while here (mid-atlantic region), and when it does, I'll either stay home or suffer through 15mph in the slow lane. I could use the excuse of oh, hey, I need an all wheel drive monster because it tends to snow in the winters... but then I'm over-buying, and I've got too much car.

It might be worth it for you to check out a gas efficient, cheap, minivan/wagon/big sedan that'll fit MOST (not all) of your needs... and then the once or twice per year you need to go camping, maybe rent the suburban from Enterprise for 80 bucks a day. Just food for thought!

I second that. It would take a heck of a long time for the cost of renting a Suburban on those few occasions you need it to add up to the $10k (plus interest) that he owes. Specifically, the kids would be grown and long gone before it added up to that! And the other nice thing about renting on those rare occasions is that you get a brand new car with free roadside assistance, and a replacement brand-new car in the very unlikely event that it breaks down.

fodder69

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Re: Vehicle Question
« Reply #18 on: January 16, 2014, 10:41:16 AM »
Sorry, but you lost me at "I need a Suburban."

I'll pile on and add that you don't "need" a Suburban but you "want" one. Fair enough and that's a choice you are free to make so let's go with that.

The last posters comments are pretty good, though. Why not just pay the 6K towards the Suburban now? The interest rate is pretty low but it would still get you closer to done with that loan and monthly commitment.

Do you really think you can get 10K for the current Suburban? It seems like buying a new car without selling the old is asking for trouble, so you really need to sell that first. Sitting on both cars with insurance, etc would eat into any potential savings pretty quick. 2 months of payments=$500, tax and title for new car, etc. $500, then you sell it for $9000 and you are only up $2000 and had to do all the work, etc. And you are still in the same vehicle essentially.

So my advice would be that it's probably better to keep the current car. Acknowledging of course that I would advise you to really think about the other options listed above which would save you a heck of a lot more than $4000 and also yield ongoing savings longer term. Renting an SUV for $350 a week for the couple of weeks a year you "need" it makes a lot of sense.