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Need some advice regarding my current auto loan. I bought a new 2008 Honda Accord V6 Coupe, EX-L trim, in March '08, and have since been paying $620 a month in car payments over a 60 month term. I have about three years left, and owe $21,800. I love the car, but knowing that I allowed myself to get reamed in this deal, coupled with the fact that I am searching for a new home, means that I'd like to sever my ties to this vehicle. Before anyone asks, I have done a budget, and I CAN afford both the car and mortgage payments, I'd just like increased flexibility of either reducing, or eliminating, this car payment. I'm trying to decide the smartest/best course of action to take here. KBB values my car around $20k, though a quick search through cars.com shows listings as high as 24-25 for an '08. My car has 45,000 miles on it, and the exterior is about what you'd expect, with the exception of some smooth rust spots near the gas tank that I'll need to have the dealer fix, and a small chip in the windshield that was patched, but is still noticeable. My original plan was to wait until I have the refund check from the FTHB tax credit, and then attempt to sell my car, either privately, or through a place like Carmax (assuming they don't low ball the poo poo out of me, which I'd expect). Once I sold my car, I'd use the proceeds to pay off the loan, utilizing the money from my refund, if necessary, to bridge the gap. Once this is accomplished, I will attempt to buy / lease a used car around the $10k mark. I'm looking at an '06 or '07 Toyota Corolla because they are rock solid, and get incredible gas mileage (much better than the 21-23 I average now). I figure that with the increased flexibility netted me by reducing my auto payment, which would allow me to put a good portion of that extra cash toward my home loan, and the savings from increased fuel efficiency and auto insurance, I can mitigate the extra $10k that I'd be spending by purchasing another car, rather than sucking it up and paying the $620 for another three years. Am I crazy? Also, I'm wondering how much I can expect the car to depreciate over the course of a couple thousand miles driven, and a few months' time? I will need to wait for the refund check to come in, and I figure that if I can't sell it for the amount I owe, I can make a few more payments to bring the amount I owe that much closer to the amount that I'd receive.
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Feb 1, 2010 09:46
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| # ¿ Apr 27, 2024 21:35 |
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