What can I do to get out from under 2 upside down cars?
April 3, 2010 12:39 AM Subscribe
What can I do to get out from under 2 upside down cars?
I own a 2000 Mitzubishi Galant and a 1995 Honda Odyssey van. I owe about $2000 on each. The Galant blew the oil pump. So it sits on the side of the house while I make payments on it. The Odyssey is in ok shape right now, but it has 250,000 miles on it and isn't going to reliable at some point.
My latest solution to transportation is to buy cheaper cars with cash and then fix minor problems until a major one comes along and then junk it. Or try to sell them before that happens and get a different one... same philosophy. No loans!
But I'm stuck with these other two. One that doesn't even run.
Is there some miracle cure for the dead car that can help me get out from under it? What about the van?
Thanks
I own a 2000 Mitzubishi Galant and a 1995 Honda Odyssey van. I owe about $2000 on each. The Galant blew the oil pump. So it sits on the side of the house while I make payments on it. The Odyssey is in ok shape right now, but it has 250,000 miles on it and isn't going to reliable at some point.
My latest solution to transportation is to buy cheaper cars with cash and then fix minor problems until a major one comes along and then junk it. Or try to sell them before that happens and get a different one... same philosophy. No loans!
But I'm stuck with these other two. One that doesn't even run.
Is there some miracle cure for the dead car that can help me get out from under it? What about the van?
Thanks
Automatically junking a car just because it gets one major problem is not always the best solution. Letting a busted car sit and rust whilst you lose money is definitely not a good solution.
A better option would be to obtain a solid, reliable vehicle, and maintain it. Fix it when it breaks. Preferably don't have a loan on it. Something like.. a Honda. They never die. I've a Honda motorcycle which is 25 years old, now, and I really should get around to changing the oil. It's been three years... and it's never. missed. a beat.
tl;dr: ditto wierdo.
posted by coriolisdave at 4:55 AM on April 3, 2010
A better option would be to obtain a solid, reliable vehicle, and maintain it. Fix it when it breaks. Preferably don't have a loan on it. Something like.. a Honda. They never die. I've a Honda motorcycle which is 25 years old, now, and I really should get around to changing the oil. It's been three years... and it's never. missed. a beat.
tl;dr: ditto wierdo.
posted by coriolisdave at 4:55 AM on April 3, 2010
Repairpal.com says a replacement oil pump for the Galant is $724 to $896 (for my Zip Code; try your own). Paying for this repair is certainly going to be less money than buying yet another cheap car.
If I were in your shoes, I would:
1. Fix the Galant
2. Sell the Odyssey
3. Save money and buy a $5K-$8K used Honda, Nissan, Subaru or Toyota that is no more than 5 years old. These deals exist, but it takes some serious looking on cars.com, ebaymotors.com, and Craigslist.
posted by camworld at 5:36 AM on April 3, 2010
If I were in your shoes, I would:
1. Fix the Galant
2. Sell the Odyssey
3. Save money and buy a $5K-$8K used Honda, Nissan, Subaru or Toyota that is no more than 5 years old. These deals exist, but it takes some serious looking on cars.com, ebaymotors.com, and Craigslist.
posted by camworld at 5:36 AM on April 3, 2010
You need to look at a car as a necessity. You have to spend money to keep them running. That's just the truth of it. Ignore whether you're "underwater" on it or not. You didn't buy the things as an investment. Get them running and maintain them. If you only need one of them, sell the one you don't want.
posted by Thorzdad at 8:33 AM on April 3, 2010
posted by Thorzdad at 8:33 AM on April 3, 2010
First of all, being upside down on a car is common (or at least had been when credit was easy). They depreciate way faster than houses. It's not a sin, even if it isn't necessarily the best way to manage your money. Put more money down next time.
Second, you can expect to drive a car a while after you pay it off. So even if it costs you more than what you have left on the loan to fix it, you're probably going to be able to keep it going possibly for years.
Third, if you fix it, you can use it as a trade-in at some point, and get back some of what you put into it.
posted by dhartung at 1:59 PM on April 3, 2010
Second, you can expect to drive a car a while after you pay it off. So even if it costs you more than what you have left on the loan to fix it, you're probably going to be able to keep it going possibly for years.
Third, if you fix it, you can use it as a trade-in at some point, and get back some of what you put into it.
posted by dhartung at 1:59 PM on April 3, 2010
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Figure out what the Galant is worth if it's fixed and what you can sell it for as-is. If you'll profit by fixing it and then selling it, do so. Best case, you make enough to pay off the loan. Worst case, you've paid off part of your loan. Either leaves you better than where you are now.
Even selling the Galant as-is would leave you better off than you are now.
As far as the Odyssey, what's wrong with it? It shouldn't be too hard to keep running unless the transmission takes a dump. Honda engines will last something approximating forever if you keep at least a little oil and coolant in them. ;)
You have the right idea buying cheap cars, though. I can't imagine spending more than $5000 for a car. I guess if I came into some money I might buy a $10,000 car. Maybe.
posted by wierdo at 1:26 AM on April 3, 2010