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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Spendy Stache on July 28, 2018, 12:28:10 PM

Title: Which car to ditch? Help me decide.
Post by: Spendy Stache on July 28, 2018, 12:28:10 PM
I have some great news! My DH and I are moving to a place with amazing mass transit and minimal parking. He will still need a car to get to work, but everywhere that I need to be will be easily bikable with a few train rides here and there. We need to cut our car fleet down by 1, but are dithering over which one makes the most sense to keep. Both have been paid off for a long time. Here are the numbers:

Car 1 - Chevy Silverado, 2005, 150,000 miles. Gas mileage ~ 17mpg. Originally took out a facepunch worthy loan for it and paid $34,000 total. This was obviously before I met all you internet friends. The cash value at Carmax is about $2,200.

Car 2 - Honda CRZ, 2011, 110,000 miles. Gas mileage ~ 34mpg. Paid $12,000 cash for it and intended to keep it until it no longer runs. The Carmax value is $4,300.

DH will be commuting about 30 miles each day, so the pros of the CRZ are better gas mileage and easier to find parking because it's small. Pros of keeping the Silverado are that my dogs fit in it, and we could bank more $ from the sale of the better car. Neither car has any issues that we know of and both have been well maintained.

Any ideas? Math I should be considering? What would you do in our situation?
Title: Re: Which car to ditch? Help me decide.
Post by: JCGreen on July 28, 2018, 01:15:29 PM
I wish I could get a vehicle for the prices you quoted. They seem a really low to me. In my area, the vehicles would probably be worth about the same due to people loving pickups .

Long term, driving the Honda CRZ would be less expensive, and I have never had a problem getting a dog in smaller cars.

The way I would think about the math would be this:

Is the difference in price of selling the more expensive vehicle x 10% interest rates < or > the difference in gas mileage x gas price x miles driven? Feel free to add maintenance costs on to either side of the equation:

so for a broad estimate: $2000 price difference x at 10% interest = $2200/ year (Index average is 7%)
 15000 miles/yr   /(divided by)   17 miles per gallon x $3/gallon = $2600/year  (This would be less if you could shorten the commute, 60 miles 5 days a week for 50 weeks is 15,000 miles, but if you use it for anything but work (shopping, vacation, etc.  it would be more)

After 10 years (if the car still runs and maintenance would be the same)
$2000 x 10% for 10 years is $5200
$2600/year gas savings x 10 years  = $26000

You can add any expected maintenance cost to either side of these equations, but I think you will find the Silverado will be more expensive

From a purely financial stand point, you should keep the CRZ, but picking a vehicle is often an emotional choice as well. If having a bigger vehicle is really that important to you, sell both vehicles and buy something that you both like that is fuel efficient and can fit the dog. 
Title: Re: Which car to ditch? Help me decide.
Post by: Raymond Reddington on July 28, 2018, 01:44:34 PM
Keep the CR-Z. Less mileage, better fuel efficiency, and probably big enough for your lifestyle.

The $2000 difference in sale price will pale in comparison to what you will save in gas and repairs on an older vehicle, especially with a 30 mile commute. Also remember that when calculating gas usage not to only include commuting miles, you have to add in all recreational mileage and errands.
Title: Re: Which car to ditch? Help me decide.
Post by: Spendy Stache on July 28, 2018, 08:22:47 PM

From a purely financial standpoint, you should keep the CRZ, but picking a vehicle is often an emotional choice as well. If having a bigger vehicle is really that important to you, sell both vehicles and buy something that you both like that is fuel efficient and can fit the dog. 


Thanks so much for this math. Honestly, I hate the bigger car. It's an emotional choice for DH because he's had his car forever, but I suck at parking it, and frankly at driving it in general, so having some hard numbers and things I didn't consider (like the 10-year cost) is helpful.

It does seem like a nice idea to have more cash up-front :-/
Title: Re: Which car to ditch? Help me decide.
Post by: JCGreen on July 29, 2018, 09:28:31 AM
The break even point for gas savings vs cash upfront is 10 months. After that keeping the better gas mileage vehicle keeps saving you even more money. You will still have money from the sale of one of the vehicles, and you will certainly get more for it if you sell it privately. What is so appealing to you about having the cash upfront?
Title: Re: Which car to ditch? Help me decide.
Post by: JLee on July 29, 2018, 09:32:09 AM
Carmax's offers are low. Check private party book values and what similar vehicles are listed for in your area.
Title: Re: Which car to ditch? Help me decide.
Post by: MDfive21 on July 30, 2018, 10:10:59 AM
so if you keep the crz you will never be able to transport your dog?  i'd keep the truck and the cash then.
Title: Re: Which car to ditch? Help me decide.
Post by: LightStache on July 30, 2018, 09:07:32 PM
Selling to Carmax is not mustachian since they will give you a super lowball price. Get the Silverado spruced up and list it on CL and Autotrader!
Title: Re: Which car to ditch? Help me decide.
Post by: Monkey Uncle on July 31, 2018, 06:00:57 AM
Selling to Carmax is not mustachian since they will give you a super lowball price. Get the Silverado spruced up and list it on CL and Autotrader!

Yes, the Silverado should be worth considerably more than $2,200.  Check CL for similar trucks to see what folks are asking for them in your area.
Title: Re: Which car to ditch? Help me decide.
Post by: hashbrowns on August 01, 2018, 06:47:44 PM
Sell the truck on craigslist for cash = more money than car max. Keep the CRZ. Eat the dogs. Sorry, I mean put both rufuses on your lap. The CRZ will be more reliable, cheaper, probably hold more value, easier to drive, etc.
Title: Re: Which car to ditch? Help me decide.
Post by: Simple Dad on August 09, 2018, 11:45:19 PM
Look to see if there is a vehicle for sale in your area that better fits your needs.  Make sure it is priced under the value of your truck and  car combined.  If you find something, sell truck and car.  That would get you a vehicle that solves the dog problem and should have lower miles.