Where to start with this one..
I had to declare bankruptcy 3 years ago and I had to surrender my vehicle. My mom was kind enough to lease a truck for me, under her name, but I make the payments. The lease is up in August, and I have to decide what to do. My boyfriend thinks I should keep my truck, and I'm not sure he understands my reasoning or maybe I'm not explaining it right to him, but he doesn't seem to want me to get rid of it, he says I'll be making more money at my new job, and work is now only 4 minutes from home, so it will cut down on gas a bit. My options are:
1. Keep the vehicle. ('02 Chevy Trailblazer)
While I love my truck, I sometimes feel it may be too hard for me to handle. I drive a lot for pet sitting and other things, and after a long time of driving, my back, neck and wrists are sore. After a week's worth of pet sittng, I can really feel my muscles are tensed up. Plus I think the seat is crooked, I seem to lean to the right. The cd player is broken, the back hatch window pops open at random times, the wipers seem to be slowly not wanting to work well, it sucks gas, and if I buy it, they said it has $10,000 left on it, and my payments will be $300 a month. So this means it's only good for a 3 year contract. This is my mom's bank, not mine. In this economy at the moment, I wouldn't be able to sell it. No one wants a gas guzzler when gas is so expensive. It may be a blessing in disguise that I leased it.
The pros are: in two words: Wisconsin winters. My truck handles wonderfully in the snow, plus it has an automatic start in it, great for cold nights when I have to go let a dog out at 10 pm.
2. Give back the vehicle and purchase something on my own. (My mom lost her job due to disability so she doubts she could get another loan for me, and my bankruptcy may factor in here...I only have a credit score of 584 at this time. What stinks is I just payed 3 years on a truck and all the credit went to my mom! But, with her not having a job, it is very likely she may not be able to even buy this truck off them unless she is grandfathered in (which I doubt) so I would HAVE to buy something else)
My original plan was to purchase a cheap car, to save money on gas and car payments. I called my credit union, and he said (let's see if I can explain this right) if I get a cheaper car, usually those cars are older, and they only let you take out a 3 year loan up to certain age of car. If it was newer, I could take out a longer loan. However, older=cheaper car, and newer=more expensive car.
But maybe not. More expensive in the long run, yes, but monthly, if my payments are spread over 72 months as opposed to 36, my payments will be the same. An example (and this is in no way the actual figure, just a round about example) a $5,000 older car, when they only allow 36 months to pay it off, will be $138 a month. But a $10,000 car, being newer, they'll allow 72 months, and the payment will be the same. Does that make sense?
3. Car or SUV?
I LOVE SUV's, always will. But with these gas prices, what am I to do? I asked you guys earlier about what kind of car would be good in snow, and I resigned myself to the sand bags in the trunk idea. I was cool with the car idea, even going so far as to say I wanted a cheap, efficient car, But today, I thought about future kids, dogs, etc...would an SUV be better suited for that? I'm NOT getting a mini van.
I guess my future plans come into play here, especially if the loan may extend into 72 months. I hope to have a child by then! Plus, I just feel safer in a truck. But, ohhhh....the gas prices!
So, I think I brought up all my concerns, what would you do in this particular situation?
I have only a little time to decide.
Keep my truck and pay $300 a month, and now little things are going wrong with it, or get a newer, nicer truck, possibly even with a warranty, for the same amount monthly?
Wouldn't it make more sense to get a newer, but more expensive vehicle, that has a loan of 72 months, thus making the payments equal to a cheaper, older car with a loan of 36 months? In my mind, getting a newer vehicle for the same monthly payment as what I'm paying now, is the way to go. But I have been known to be wrong.
Blast holes in my theory, if need be. Bring me back down to Earth!
I had to declare bankruptcy 3 years ago and I had to surrender my vehicle. My mom was kind enough to lease a truck for me, under her name, but I make the payments. The lease is up in August, and I have to decide what to do. My boyfriend thinks I should keep my truck, and I'm not sure he understands my reasoning or maybe I'm not explaining it right to him, but he doesn't seem to want me to get rid of it, he says I'll be making more money at my new job, and work is now only 4 minutes from home, so it will cut down on gas a bit. My options are:
1. Keep the vehicle. ('02 Chevy Trailblazer)
While I love my truck, I sometimes feel it may be too hard for me to handle. I drive a lot for pet sitting and other things, and after a long time of driving, my back, neck and wrists are sore. After a week's worth of pet sittng, I can really feel my muscles are tensed up. Plus I think the seat is crooked, I seem to lean to the right. The cd player is broken, the back hatch window pops open at random times, the wipers seem to be slowly not wanting to work well, it sucks gas, and if I buy it, they said it has $10,000 left on it, and my payments will be $300 a month. So this means it's only good for a 3 year contract. This is my mom's bank, not mine. In this economy at the moment, I wouldn't be able to sell it. No one wants a gas guzzler when gas is so expensive. It may be a blessing in disguise that I leased it.
The pros are: in two words: Wisconsin winters. My truck handles wonderfully in the snow, plus it has an automatic start in it, great for cold nights when I have to go let a dog out at 10 pm.
2. Give back the vehicle and purchase something on my own. (My mom lost her job due to disability so she doubts she could get another loan for me, and my bankruptcy may factor in here...I only have a credit score of 584 at this time. What stinks is I just payed 3 years on a truck and all the credit went to my mom! But, with her not having a job, it is very likely she may not be able to even buy this truck off them unless she is grandfathered in (which I doubt) so I would HAVE to buy something else)
My original plan was to purchase a cheap car, to save money on gas and car payments. I called my credit union, and he said (let's see if I can explain this right) if I get a cheaper car, usually those cars are older, and they only let you take out a 3 year loan up to certain age of car. If it was newer, I could take out a longer loan. However, older=cheaper car, and newer=more expensive car.
But maybe not. More expensive in the long run, yes, but monthly, if my payments are spread over 72 months as opposed to 36, my payments will be the same. An example (and this is in no way the actual figure, just a round about example) a $5,000 older car, when they only allow 36 months to pay it off, will be $138 a month. But a $10,000 car, being newer, they'll allow 72 months, and the payment will be the same. Does that make sense?
3. Car or SUV?
I LOVE SUV's, always will. But with these gas prices, what am I to do? I asked you guys earlier about what kind of car would be good in snow, and I resigned myself to the sand bags in the trunk idea. I was cool with the car idea, even going so far as to say I wanted a cheap, efficient car, But today, I thought about future kids, dogs, etc...would an SUV be better suited for that? I'm NOT getting a mini van.
So, I think I brought up all my concerns, what would you do in this particular situation?
I have only a little time to decide.
Keep my truck and pay $300 a month, and now little things are going wrong with it, or get a newer, nicer truck, possibly even with a warranty, for the same amount monthly?
Wouldn't it make more sense to get a newer, but more expensive vehicle, that has a loan of 72 months, thus making the payments equal to a cheaper, older car with a loan of 36 months? In my mind, getting a newer vehicle for the same monthly payment as what I'm paying now, is the way to go. But I have been known to be wrong.