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ashtray · 01-24-2013, 07:18 PM

6yr loan - don't know the rate or your down payment, but lets make up some figures:

You're paying $500/mo for 72 months? That's $36,000 in payments. So if you paid $25k plus $1k tax/tags, you're at about a 13% interest rate? The payments you've made since June - 8 payments - were $4k, but at this point in the loan, lets be conservative and say half of that was interest. So you still owe $24k on a $25k (new) car.

Sell the aftermarket stuff - 50 cents on the dollar, should put $1k in your pocket.

Now you'll never sell your car with 10k miles on it for $1k less than a new one. Best case, all your local dealers are adding extras jacking the price up to $28-30k, making a used one more appealing. You could probably try to get $22k for it.

Now, you owe $24k - so you'd have to PAY $2k when you sell it. If you don't have $2k, then you're stuck with the car.

Lets say you can walk away clean - after selling your mods you can cover the gap and you're left with no car but no debt.

Student loans? Or do you have those already? If you can get student loans to cover tuition and cheap living costs, then a part time job at $10/hr - you can save up some money over time and then buy a $4k Miata in cash. Until then, you ride the bus, walk, get rides with friends, live close to campus, etc.

After you graduate you can get the "real job", make some money, but a new car, etc etc.

It's all about making smart financial decisions. Paying $36k for a $25k car is not so smart. Putting yourself in a position of living month to month with no safety net, not so smart. (But that happens to a lot of people!). Maintaining a lifestyle you can't support without a job that you admit you can't replace at the same salary - not wise. If you were making $30/hr, but really could only replace that job with one at $17/hr, then you should set up your finances around the $17/hr budget. Anything extra you took in goes into a savings account.

Looks like you jumped the shark buying the FRS. I drove $800 pieces of junk in college. When I graduated and got a real job, I bought a CPO BMW as a reward.

01-24-2013, 07:18 PM	#21
ashtray As Seen On The Internet Join Date: Apr 2011 Drives: 2003 WRX, 2013 BRZ, 442 Location: SoCal Posts: 852 Thanks: 23 Thanked 251 Times in 159 Posts Mentioned: 1 Post(s)	6yr loan - don't know the rate or your down payment, but lets make up some figures: You're paying $500/mo for 72 months? That's $36,000 in payments. So if you paid $25k plus $1k tax/tags, you're at about a 13% interest rate? The payments you've made since June - 8 payments - were $4k, but at this point in the loan, lets be conservative and say half of that was interest. So you still owe $24k on a $25k (new) car. Sell the aftermarket stuff - 50 cents on the dollar, should put $1k in your pocket. Now you'll never sell your car with 10k miles on it for $1k less than a new one. Best case, all your local dealers are adding extras jacking the price up to $28-30k, making a used one more appealing. You could probably try to get $22k for it. Now, you owe $24k - so you'd have to PAY $2k when you sell it. If you don't have $2k, then you're stuck with the car. Lets say you can walk away clean - after selling your mods you can cover the gap and you're left with no car but no debt. Student loans? Or do you have those already? If you can get student loans to cover tuition and cheap living costs, then a part time job at $10/hr - you can save up some money over time and then buy a $4k Miata in cash. Until then, you ride the bus, walk, get rides with friends, live close to campus, etc. After you graduate you can get the "real job", make some money, but a new car, etc etc. It's all about making smart financial decisions. Paying $36k for a $25k car is not so smart. Putting yourself in a position of living month to month with no safety net, not so smart. (But that happens to a lot of people!). Maintaining a lifestyle you can't support without a job that you admit you can't replace at the same salary - not wise. If you were making $30/hr, but really could only replace that job with one at $17/hr, then you should set up your finances around the $17/hr budget. Anything extra you took in goes into a savings account. Looks like you jumped the shark buying the FRS. I drove $800 pieces of junk in college. When I graduated and got a real job, I bought a CPO BMW as a reward.