well, it's been slow at work, and i anticipate a significant cut in income. by next school year, our kids will all be learning at home on virtual school. so, to help our finances, we are considering cutting back to one car.
the problem is my wife cannot drive a standard tranny and her car seats only 4(we have 5 family members). we need a bigger car as it is, so her learning is not the issue(she won't anyway).
so we have a few avenues in which to take, and i'd like your thoughts perhaps covering any missed viewpoints.
Interesting question... My first thought is to park one, and trade one. however, the car will be depreciating while its parked, so now that I think of it some more its probably best to sell both (even if you don't need the money for the second car), and buy one vehicle that will suit the family's needs. Take the money that you get selling the second vehicle, and put it in an interest bearing account or CD, and when you're ready to have a second vehicle again you'll be better off.
I've always been told that trading is a bad deal. most of the time, they will give you a good deal on trade in value OR on the car you are purchasing, usually not both. this has held true in most of my purchases as well.
I am not a big fan of selling a car out right either because you have all the phone calls and people wanting to give you next to nothing for it.
there is a company called carmax (www.carmax.com) that buys and sells cars. they will buy your car even if you don't buy theirs. you usually won't get better than trade in value for it but then you have cash in hand to go and haggle with a dealership (be it new or used).
I know this doesn't answer your question about which way to go but it may put more cash in your pocket when the time comes. I also like the little bit about gov assistance and you probably make too much (you're employed right?) told you.
Be the change you wish to see in the world
Carmax is a great place to sell a car. I remember when mom bought her Escape she wanted to sell her 97 Buick Century wagon (Great car!). She took it to Carmax and they offered her $1,400 for it (because it had 140,000 miles on it). Dad saw that the blue book value was $1,800 so he thought he could do better selling it himself. Well, he spent 2-3 months trying to sell it, and finally sold it for $1,500 but after paying an extra few months registration and insurance on the car it would have been better to just sell it to Carmax and been done with it.
fantastic idea about the CD. reminds me of the idea that dictates continuing to pay on a car after it's paid off--pay yourself via savings account. then, when and if the need for a new one arises, a short note (if at all) will cover it. i'm allergic to payments however.
i'm not sure if i'd get any buyers(Florida's unemployment rate is higher than the nat'l avg).
i'd have to see if a Mazda3 is big enough. we can all fit in my prizm, it's simply cramped.
thanks for the reminder about carmax(knew about it, just slipped my mind). i wonder if they're changing policy due to the sour economy(not buying as much)?
the crack about gov't help was half serious. we do not qualify w/ my overtime and bonus, but w/out them we do qualify(they make up ~40% of my pay). my wife is unemployed.
there has been talk of cutting hours and POSSIBLE layoffs. i absolutely wish to stay independant of gov't assistance having said all of that.
Go on Autotrader.com, and look to see what other similar (Style and Quality) cars are going for, and undercut the price by about a hundred dollars. You should sell quickly. Either that or craigslist it.
But the Geo should sell quickly, due to the fact that even with the gas prices down low, people are still hurting economically. You could instead focus on very low insurance rates, as well as gas prices.
But, when you sell it, then you can use the cash as a bargaining for when you buy a new one, and you'll likely get far more than a trade in.