- April 9, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Looking to Adjust Finances After Purchasing a New Vehicle
I am a 31-year-old male who recently made the decision to finance a new vehicle, specifically a 2024 CRV Hybrid. My girlfriend and I are planning to start a family, and I believed that a larger vehicle would be necessary for our future plans. However, after factoring in taxes, I find myself in debt to the tune of $52,000. The car payments amount to $370 bi-weekly, with an interest rate of 6.99%. On the bright side, my gross income stands at $110,000.
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In light of my current situation, I am seeking advice on the best course of action. Should I consider selling the new vehicle and purchasing a used one to alleviate the financial burden, or should I take this as a learning experience and adjust my budget accordingly? Your insights and suggestions would be greatly appreciated.
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****** just grabbed a
I mean, for a new CRV Hybrid, 52k is about the right price.
What’s killing you is the payments + interest. It would be good to pay that off in like 2-3 years to significantly reduce the interest, but it sounds like you dont have much liquid cash or income. So I guess that option is off the table.
I’m seeing a bunch of CRV Hybrids on autotrader between $46k-50k. Honestly, there’s no harm in just putting it up for sale for $50-51k, being a bit firm-ish on the price. If your KM’s are low enough (like less than 1000), maybe someone who’s in the market for a new CRV will bite and save a couple grand at your expense. If you go this route, mathematically, the tradeoff of the money youll lose on the sale, you can weigh against the interest youll pay. As an extreme (unrealistic) example to make my point, if you can only sell it for $40k, then you lose $12k. That 12k can also just go to interest payments while you keep the car for a couple years then sell it later. However, this doesnt solve your “i need more money now” problem.
If your situation is truly dire, then perhaps just sell it, deal with whatever loss, and buy some older honda odyssey for like $18k. Your new burden will be $18k+loss on the sale (~5k?) = 23k.
>Car Loan Mistake
Yes. Yes it is.
>After taxes, I owe 52K.
JFC
>Best options?
Well if you need a car you need a car. You didn’t need this one. But. It’s a Honda. If you actually look after it they tend to last. So, pay it off as fast as you can, (Higher interest debt first), and stretch it out for the long term.
Just budget around the car. Selling it would be a bad decision.
Dang 52k for a crv. I mean there’s not much you can do, you can sell it and cough up the couple thousand to pay off the loan or just keep it and learn from your mistake. Choice is yours. The used car market is calming down a lot and there’s a lot of good cars out there for the 30k mark that would do just fine as a family car.
Bro babies take a while to conceive and cook and you don’t need a bigger vehicle until you have at least two kids. Also expensive vehicles are probably the biggest waste of money possible, especially if you’re paying 7% interest on it.
I’m too lazy to do the math but depending on the term length I’d guess you’ll be paying over $70k-$80k for this car which will be worth significantly less than 52k in 10 years.
My household income is $220k, we have one kid so far and we “get by” (i.e. it suits our needs perfectly) with a single 2017 Subaru Impreza. Hatchbacks fit a surprising amount of stuff.
How much can you sell it for?
Sadly, you fell into the “want a family therefore needs a bigger vehicle” trap, before even having a family.
That said, it is likely going to be a reliable vehicle you could keep for a very long time. If your interest rate wasn’t high for an auto loan, I’d say keep it, but the interest is brutal. Plus, it’s an SUV which is what everyone wants these days so you pay a premium for it. If you were in the market for a sedan, which is still a reasonable family vehicle, you could get a really nice second hand sedan for like under $10k that would likely last for years with maybe a bit more maintenance.
So, just throwing it out there but if you’re grossing 110k you should be able to cover this unless other parts of your budget are out of whack. I’ll agree that vehicle prices and interest rates are gross, but take a look at cutting other expenses (you mentioned vacations) before rolling negative equity into a used car loan
Do you need a vehicle?
How much can you get for this? Will you be under water? I’m seeing used CRVs from 23 for under 40k.
It might be best to cut your losses and run.
Honestly 52k plus for a CRV is a bit much. you can get an older Model 3 for under 35k with minimal maintenance and with home charging it’s even more convenient.
You will save the interest if you can pay it off ASAP. Get rid of it and take the lesson. You should be able to find someone who doesn’t want to wait 2 years for one.
you gross 110k, it’s not ideal but its a comfortable situation when people get b y with half that
Last I checked, used vehicles are still a crap value, i.e. you might save $10K getting a 1-2 year old car with 40K km (or much more) on it already, the real savings is not significant in the grand scheme of things considering what 40K km will mean in the end
Just wait until you see how expensive kids are.
The size is good enough. You will be fine..
Bro is your HHI 110k? If so, how can you even possibly think of starting a family?
Keep the car. You don’t need a bigger vehicle.