Many people have always stated that cars are the worst investment known to man. There are some that don't even consider a car an investment, after all, the moment you drive that baby off of the dealership's sales lot, it immediately depreciates in value! I can't think of anything else that loses value the moment you purchase it?
I for one fall into the group of people that feel that automobiles are guaranteed to cause stress in your life. My current car is beginning to drive me to the psych ward, as I am starting to tell myself that I am hearing noises coming from underneath my ride.
A little background on my car:
- It is a 2003 Mazda6 with approximately 85,000 miles on it
- I bought it certified pre-owned in 2006 with 22,000 miles on it
- I have a monthly car payment of $342 with about $6,500 left on it, but I pay $400 every month and at this rate it will be paid off by December 2010
- I have spent $1,500 this year on maintenance to the car (Engine coil problems, gas tank valve replacement) and $400 on brakes (expected costs)
- I just bought new tires in March that totaled $475
- The car is yellow, fast, and the sound system is banging
The car itself has a Kelly Blue Book trade-in value of $6,300, so if I did decide to trade it in it would knock down the price of any new/used car I would want. However, there is still the issue of the loan that I have yet to completely pay off that is acting as the thorn in my side. I really did mess up big time by not paying the car of quicker when I had the chance (Like when I BOUGHT IT!), but that is a subject for another post.
What are my options? Look for something else? But then I will be taking on an additional loan to finance that car since I do not have the cash to pay for one fully. I could try and sell it privately to pay down my current car loan, but then I will be stuck with a new loan since I will need a method to commute to work.
Every time I sit in my car I have this little premonition that it is just going to fall apart in the middle of the street like this video. If that does happen, I will be stuck with paying down the old loan as well as financing a new ride. Any mechanics out there? I need to get the car diagnosed properly first and evaluate whether there really is a serious problem. Once that is done then I can make a move with my taxi cab and figure out the next step. It would be pretty ironic if I end up being one of those people that instantly lose value the moment I drive a new/used car off the lot, hopefully my next car won't put me in a straight jacket like this one.
Get At Me on TWITTER!
3 comments:
The older brother told me auto loans are the worst. It's practically the only loan where you are not building equity. school loans = equity is your brain resulting in a job. house loans = self expl. car loans = cars depreciate in value. I would look into consumer report find a good used car. If it's your last resort then get a car loan. or dig into your savings..borrow from family.. good luck! I know it's not much advice or help.. maybe ask a relative if they have a car they want to sell.
If you could sell it private party and get $6,000+, you could always turn around and buy a beater for $1-2,000.
You could then place the extra $4-5,000 in a "new car fund." Every month you can place $400 more (your current payment) into the "new car fund" along with any money you are saving on lower maintenance costs.
After a year you would have a pretty solid fund of about $10k, after two years you got yourself a nice $15k. That can buy some cars in cash, or at least make a pretty little dent!
touche
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