Car Question: Should I sell it, or keep making payments?

Question

Here's my dilemma.  About a year and a half ago, I foolishly bought a new car.  I financed it over four years.  Since then I have "seen the light" and realized how stupid it is to finance a depreciating asset.  I told myself, at least I shouldn't have any problems with this car for a couple of years.  So much for that.   I just went to the dealer and they told me my car needs new breaks.  The car has only 23,000 miles on it and they want $800 for new breaks, or pads or whatever it is they need to replace.  

So the choice I have is to fix the car (hopefully find someone who can do it cheaper than $800) and keep making car payments.  Or I can sell the car for more than I owe, and with the equity buy something that will get me from point A to point B.  I should have 4K - 5K leftover depending on what I can get for my car.  Another factor that plays is my girlfriend has a very reliable car, so it's not like I need a car right away.  

So, sell or stay?  Thanks in advance!

chris m · Accepted Answer

you need to fix the brakes regardless, so take it to a shop like midas or pep boys and they should do it for less than $500. 
If you can sell the car and buy something cash in the $5000 range, that's the best deal. I buy used all the time; cars with about 70k miles still have over 1/2 their life left, and you can get them for a few thousand bucks. Check consumer Reports auto issue (at the local public library) for used car recommendations at various price points, then search craigslist.com and autotrader.com for good deals. Avoid ebaymotors like the plague! good luck.

Be me · Answer

Well, you can most definately get it fixed for less than the dealer charges.  If you want to sell it and get the most for the car, you need to get the brakes fixed first.  I would then definately sell it (trying to do the same thing with my vehicle) but I doubt that you are going to get more for the vehicle than you owe - unless you've been making double payments on it for the last year.  Check out the value of your car at www.kellybluebook.com

carly sue · Answer

if you don't want to make payments on it and you are SURE you can sell it for more than you owe on it. why not? most people are upside down on a vehicle when they do that though and i can't see how it would be diff for you unless you had a big down payment and got a really great deal on the car. needing new brakes really isn't a "problem" it is a maintenance issue that all cars have. and $800 to fix them is ridiculus. get a second quote on that.

? · Answer

Nothing on the planet will precipitate a loved ones battle faster than cash. The banks positioned a lien at the auto and the targeted approach varies from state to state as each and every state has their possess rules on that. In Texas the financial institution will get the customary identify, made out to the customer and the customer will get a replica stamped "NON-NEGOTIABLE". Once the lien is paid off the financial institution sends the customary to the customer. I'd endorse you touch an legal professional to peer what the chances are to your case beneath your state's legislation.

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Car Question: Should I sell it, or keep making payments?

4 Answers