Sell my car to become debt free?

[dollarbillz]

Hey Guys

So i drive a 2000 Acura Integra Paid Off Bought it for $14,900 and can easily sell it for $7000


Should i sell it to become debt free and get a car later i dont really need transportation cause my mom and my brother lend me there cars...

Or should i hold on to it since it paid off i dont drive it atm as i took insurance off of it...

What do u think! i will be debt free if i sell it and can start to save and invest

I am about 5600 in debt even if i sell my car say for 5000 instead of 7000 if it was some person lowballing me getting out of 600 in debt aint bad

Just i do plan on buying a car later on so im just wondering if i should keep this one cause

1. Its paid off
2. it works really well replaced and maitained most important stuff
timing belt.. etc..
or just sell it now and drive with parents car and bros car for a while and save up after to get a new car and not finance it?

Plus i am starting school doing night classes so train will be my #1 transportation lol

[LadyLuck]

you've just answered your own question.

1) youre not driving the car at the moment
2) you have access to your moms and brothers vehicle
3) youre starting school and will be using the train
4) you need to get out of debt and start investing

sell it, but dont let anyone lowball you, the more you can get for it the better for you, save the rest after you pay off your debt and invest!

good luck with whatever you choose to do.

[hampstor]

If you don't have another vehicle at all to be insured on, check with your insurance company regarding the consequences of not having insurance for a period of time.

A former co-worker sold his only vehicle and cancelled his auto insurance policy. 2 Years later, he decided he wanted a car again and found that his insurance company put him back to 'new driver' status and he paid significantly higher for insurance.

[dollarbillz]

Have any idea how much i can get for it?



2000 Integra
Painted Brand New With Red/Violet Pearl Nighthawk Black
Minor Scratches
Replaced: Timing Belt/Distributor Cap
After market Deck/Subs
Has a spoiler/euro lights/and a front kit and side fenders


Just a rough estimate

[ExtraSlow]

+1 for selling it. If you aren't driving it, it's just depreciating. Plus, if it isn't driven every few months at least, some of the seals in the engine and transmission can dry out in time and cause problems. Prepping a car for long term storage is a big job. Better to sell it now, pay off your debts and save what you can while you are at school.
Then when you are done school, you'll have good credit and you'll be in a good position to buy another car.

[anarchy]

:werd: to all the responses.

There's no benefit to keeping it imo. If you're not using it, it's just going to depreciate in value. Sell it, use transit/family cars, pay off your debt (which will increase with interest if you don't pay it off) and use the extra cash leftover to invest.

But don't get lowballed! It's not urgent that you get rid of it right away, but sell it for sures!

And like ExtraSlow said, when you're ready to buy a new car, you'll be debt free and in a much better position to own a car.

I wish I was in your position, I'd sell my lude in a heartbeat. But i have to use my car quite often so it's not an option.

[Euro838]

+1 with checking with your insurance company. You definitely do not want to have to rebuild your insurance record as it'll cost you a lot to rebuild insurance.

How many kms on the car? If you want to check out the value of your car, you can check it on blackbook or on www.vmrcanada.com. Sounds like there have been some additions to it so you can factor that into the price.

In terms of your debt, are they interest loans? If so, what is the rate? Depending on your borrowing rate, it may be better to invest the cash rather than paying off the debt.

[dollarbillz]

Originally posted by Euro838
+1 with checking with your insurance company. You definitely do not want to have to rebuild your insurance record as it'll cost you a lot to rebuild insurance.

How many kms on the car? If you want to check out the value of your car, you can check it on blackbook or on www.vmrcanada.com. Sounds like there have been some additions to it so you can factor that into the price.

In terms of your debt, are they interest loans? If so, what is the rate? Depending on your borrowing rate, it may be better to invest the cash rather than paying off the debt.

It is 125000km and it is mostly all CC's lesson learned imma pay cash from now on!

[LadyLuck]

Originally posted by dollarbillz


It is 125000km and it is mostly all CC's lesson learned imma pay cash from now on!

no need to pay cash, pay off your CC's and continue using them building a better credit for yourself.

just make sure that as soon as you use your credit car to pay it off right away. i usually just transfer money onto my credit card online as soon as i get home.

internet banking ftw!

[anarchy]

Originally posted by dollarbillz


It is 125000km and it is mostly all CC's lesson learned imma pay cash from now on!

That's not necessarily the best way to go about it. Learn to budget yourself and only put it on your card if you know you can afford it.

I charge anything and everything I can onto my Visa, but I pay it off in full when the bill comes. It's great for your credit, and there are other benefits to using your CC as well. You just have to learn how to manage it financially.

[dollarbillz]

Originally posted by anarchy


That's not necessarily the best way to go about it. Learn to budget yourself and only put it on your card if you know you can afford it.

I charge anything and everything I can onto my Visa, but I pay it off in full when the bill comes. It's great for your credit, and there are other benefits to using your CC as well. You just have to learn how to manage it financially.


Well yes i know ive budgeted myself now but in order to $0 out i need to sell the car

I make $1100/paycheck

I help my mom out i pay $200 in bills for her
$80 in my cell
I also got a computer which i bought for $896 ish financed bad idea!

so if i sell my car my paychequ will be all savings after the 200-80

and less stress

[ExtraSlow]

If your debt is on your credit cards, your intrest rate is probably something like 18% or higher. Pay that off right away. You arne't likely to beat that on any investments, and it's clearly stressing you out.
Pay it off, start saving, be happy.

[anarchy]

Originally posted by dollarbillz



Well yes i know ive budgeted myself now but in order to $0 out i need to sell the car

I make $1100/paycheck

I help my mom out i pay $200 in bills for her
$80 in my cell
I also got a computer which i bought for $896 ish financed bad idea!

so if i sell my car my paychequ will be all savings after the 200-80

and less stress

Yeah I was referring to your using cash only comment. I was basically just saying you should still use credit cards for purchases, so long as you can manage it responsibly.

And from the sounds of it, if you sell your car and all you have to pay out of your $1100 pay check is $280, you're laughing. Each month you have $1640 that can go to savings, which is pretty damn good.

Heck, even if you kept your your car, you've already paid it off so you're just paying insurance, so you'll still have a good chunk of money to pay off your credit card each month. But having since you said you're not using it and it's not even insured, sell it, then save up and you'll be grateful for it in the end.

[Grogador]

AFAIK, continuity of insurance, even as a secondary driver, is #1 for determining your insurance rate. Heck, in BC you get like 5% discount per year insured, up to a max of 9 or 10yrs.

So you're not gonna need a car when you finish school to get to your job? How much more is it really gonna depreciate in 2 or 4yrs when you're not putting clicks on it? Do you want to get into a different vehicle anyway? Personally I really like the independence of having my own vehicle, and not having to bum off other people.

Financially it sounds like you're doing pretty good. Consolidate the CC debt onto a decent LoC or mommy-loan, and be very stingy with CCs. I also use them for everything because of cashback (or airmiles or whatever) but if you can't pay in *full* every month, don't buy it! Why would you let the banks rape you for 18%? Budget, see where your money is going, and figure out how much it'll cost you to keep the car and pay interest on your consolidated debt.

[rc2002]

I'd say keep the car. It's worth it to be able to drive whenever you want without having to borrow from your mom or your brother.

You're taking a huge hit by selling the car and you likely won't be able to buy a similar car with the money you get from the sale.

Plus if you're planning to use that money to "invest", it might be tough to get any good returns in this kind of market.

[Kloubek]

+1 for selling the car. You don't need it, and the money you get for it can be put towards your bills and perhaps investments. The longer you keep the car idle, the more depreciation it will experience with no return on investment.

Besides that, there is no point in paying high interest credit card rates if you don't have to.

[blownz]

Originally posted by richardchan2002
I'd say keep the car. It's worth it to be able to drive whenever you want without having to borrow from your mom or your brother.

You're taking a huge hit by selling the car and you likely won't be able to buy a similar car with the money you get from the sale.

Plus if you're planning to use that money to "invest", it might be tough to get any good returns in this kind of market.

^ but he is going to be using the money to pay off credit card debt. The cost of not doing that is pretty big.


I personally think since you are going to be going to school and taking transit (plus have ocasional access to other vehicles) I would get rid of the car and try to get through school without debt. I think you will be better off for it when you are finished. And even without driving your car it is going to depreciate more. The same 5-7k will buy a better car in x amount of years. And if you are concerned about the continuous insurance, get insured as a part time driver on one of the other cars in the house.

[whodiman]

sell the car and pay off the debt. I echo most of the reasons already said but here's another:

When you graduate after 4 years of school your views begin to change. You may no longer care about having a 2 door car to supe out. You needs may change. You might not even care about having a car period at that time. Or you might make boat loads of money then and want an even nicer car. The cost of not paying that debt is higher than the cost of rebuying later.

[rc2002]

Originally posted by blownz


^ but he is going to be using the money to pay off credit card debt. The cost of not doing that is pretty big.


I didn't read the part about credit card debt. I just assumed it was an auto loan or line of credit. On $5000, credit card interest would be $1000/yr. If that was the case, I would ditch the car.