Should I sell my car and get a Beater?
QubertWong
Member Posts: 2
Greetings:
I am looking for some advice. About three years ago, I bought my first new car--a 2018 Nissan Sentra. When I bought it, I had a fairly less than ideal situation. My credit score was very low (in the high 500s), and I, admittedly, didn't have a lot of experience, or "game". with regards to buying a new car. Looking back, I feel like I got fleeced. The interest rate was nearly 20%, and there was very little wiggle room in negotiating. All in all, I was paying about $440 in payments on the car--while making around $45000 a year. This high payment had a profound impact on my life--as you can likely imagine. My situation has improved some what since then. I am making more money (around $52000/year), my credit has improved substantially (now in the mid 600s), and I was recently able to refinance the loan. The payments are now around $270/month. This is still pretty high for my situation, and my insurance payments are high as well. Recently, I've been contemplating selling the car (Still worth around $13-14k), paying off what I owe on the car (Roughly $14,500) and replacing the car with an older, reliable car or truck--a beater if you will. Would this be a wise decision? This will probably be my last new car--regardless. Any advice would be greatly appreciated. Thanks in advance!
I am looking for some advice. About three years ago, I bought my first new car--a 2018 Nissan Sentra. When I bought it, I had a fairly less than ideal situation. My credit score was very low (in the high 500s), and I, admittedly, didn't have a lot of experience, or "game". with regards to buying a new car. Looking back, I feel like I got fleeced. The interest rate was nearly 20%, and there was very little wiggle room in negotiating. All in all, I was paying about $440 in payments on the car--while making around $45000 a year. This high payment had a profound impact on my life--as you can likely imagine. My situation has improved some what since then. I am making more money (around $52000/year), my credit has improved substantially (now in the mid 600s), and I was recently able to refinance the loan. The payments are now around $270/month. This is still pretty high for my situation, and my insurance payments are high as well. Recently, I've been contemplating selling the car (Still worth around $13-14k), paying off what I owe on the car (Roughly $14,500) and replacing the car with an older, reliable car or truck--a beater if you will. Would this be a wise decision? This will probably be my last new car--regardless. Any advice would be greatly appreciated. Thanks in advance!
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What kind of beater would you buy? Unless you have some cash in reserve most older cars have some defects which could quickly eat up any money you save. If you have a trusted repair shop or mechanical skills buying a beater could work.
BTW, what kind of beater are you thinking of buying? more than 10 years old? high mileage? rusted or cosmetically impaired?
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible