Author Topic: Keep or sell car?  (Read 4708 times)

urover

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Keep or sell car?
« on: June 25, 2013, 10:30:35 AM »
3 years ago, I bought this car new (https://alserrablog.files.wordpress.com/2012/08/spark_32.jpg), and it costed me my entire year's salary (at that time). I wasn't very mustachian then, and especially after coming from a bad experience with a used car that left a sour taste I decided I needed to buy new. Bought it on payments but company reimbursed most interest. Also, I paid it off in 2.5 years although it was originally for 5 years.

However, today, 3 years later, the car has only run 15000km (9320miles) which is about 5000km (3106miles) per year. Basically, the car is highly underutilized. I tested the used-car market and asked around and found that at current market rates I'd get back 55-57%% of my car's initial purchase value, if sold now. 

I recently had to spend on a new battery and another full year's insurance so they're taken care of for a while, but I'm just wondering if I'm throwing away money by simply letting the car idle and depreciate in my parking lot. Not only is it not doing me any good sitting there, it is also licking away my money.

I live in a city with easy availability of rickshaws (alias three wheeled taxis) and cab-on-call (proper car) for all intra-city travel. Traffic in the city is horrific and parking is a nightmare. Plus, I don't travel out of the city much often, and when I do, I usually catch the train or flight because our highway systems are tragic.

What do you guys suggest I do with the car? I had originally bought it for my 40km roundtrip commute, but I soon realized how horrific and stressful it was to drive across the city. I have a 9 y.o commuter motorcycle that does its job well of taking me around at city speeds so I really feel that would be sufficient for now. FYI, I'm single and not in relationship so I don't have a family that needs to be driven around.

I know it was a bad idea to buy a car at all, forget buying new, but what do you think? The math seems to be easy and tells me I should get rid of the car, but my heart doesn't seem to understand. I probably need a few face punches.

P.S: Btw, even if I moved closer to work, I'd still not drive, I'd just take my bike out.

matchewed

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Re: Keep or sell car?
« Reply #1 on: June 25, 2013, 10:35:20 AM »
IMO if you can live your life without a vehicle then sell it. Spending forms emotional attachments to the items we buy. You need to be able to identify that and deal with it in some way. Then sell the car.

If you know you need a vehicle occasionally and taxis or rickshaws aren't an option for those moments you could still sell the car and downscale to a scooter perhaps.

daverobev

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Re: Keep or sell car?
« Reply #2 on: June 25, 2013, 02:15:54 PM »
I read somewhere... that for all the things you have an emotional attachment for but no real use, just take a photo and sell/give them away.

Seems pretty clear. You don't need the car. With such low mileage you could get a better price... if you hold out for it.

DanBrewMan

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Re: Keep or sell car?
« Reply #3 on: June 25, 2013, 03:21:15 PM »
Honestly, I'd keep it.  It's paid off.  When I opened your link I was expecting to see some flashy sports car, but you at least chose an economical vehicle.  Take good care of it, and it will last you a long, long time.

If your plan is to sell it only to turn around and buy a cheaper, older used car, I wouldn't.  Yeah, the numbers are there, but you are introducing some unneeded risk in purchasing a used car.

I bought (ahem... financed) a Subaru WRX and ended up selling it and turning around to buy a Hyundai Elantra Touring.  That made sense because everything about it was cheaper.  Gas mileage, premium gas, insurance, value of the car, depreciation.  Plus I was commuting 50 miles a day.

But, you aren't in that situation.  You don't have a loan lingering over you.  Buying new wasn't the best choice, but you could have done a whole hell of a lot worse.  Drive it till it dies and get a used one next time.

SnackDog

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Re: Keep or sell car?
« Reply #4 on: June 25, 2013, 04:22:10 PM »
The safety difference between the car and motorcycle is vast. I would not sell the car and commute on the motorcycle.

Lanny

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Re: Keep or sell car?
« Reply #5 on: June 25, 2013, 04:39:20 PM »
I'd sell it, you drive so little that it doesn't make sense to own a car and pay monthly insurance.

urover

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Re: Keep or sell car?
« Reply #6 on: June 25, 2013, 07:26:48 PM »
Well, you guys have given me something to chew on, but I'm slightly more confused than when I started this topic :D
@DanBrewMan, yes I was in the same mindset about keeping this car forever, but when I plan to sell it, I don't intend to replace it with a cheaper car. My plan is to go car-less. Also, a used cheap car would cost me as much as what I'd get selling this beauty away, and like you say, it would introduce a whole lot of uncertainty into the equation.

@Lanny, insurance in this country is annual and it costs very little compared to what it does in developed nations (although the service can be pathetic). It's already paid off until next year June.

@matchewed, I already have a motorcycle that fits the scooter category :)

My only worry of keeping it is that I'd continue to pour my money into parts that deteriorate over time with or without usage (oil, batteries, tires) and that I'd be in a better position taking my money out and investing it in better avenues. Not to forget are the weekly car washes and monthly waxing and worrying about scratches and dents in this nightmarish traffic. But I wonder if I'm taking it to the extremes. :S

Spudd

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Re: Keep or sell car?
« Reply #7 on: June 26, 2013, 08:13:40 AM »
I would sell it, because it sounds like you really don't like driving it, and you have lots of options if you go car-free. By keeping it, you're committing to depreciation, maintenance, insurance which will cost you money every year. 

DanBrewMan

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Re: Keep or sell car?
« Reply #8 on: June 26, 2013, 09:08:40 AM »
If you can live without the car and want to sell it to go car-less, then go for it!

CanuckExpat

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Re: Keep or sell car?
« Reply #9 on: June 26, 2013, 10:35:49 AM »
I say sell the car. Sounds like you don't need it. You will free up some capital and parking/storage space

urover

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Re: Keep or sell car?
« Reply #10 on: July 03, 2013, 05:20:34 AM »
I put the car up for sale some time back and today, I'm officially carless!! Yoohoo. I'm now free of a whole lot of stress due to car ownership. The feeling of not having a car is yet to sink in but I already feel lighter mentally and I'm pretty happy I was able to get past my serious indecisiveness.  (This blog sort of helped with indecisiveness: http://www.pickthebrain.com/blog/how-to-deal-with-indecision).

Thanks to all here for the comments and although I was sad to see the car go away, I know I won't be so for very long.