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Car/Finance Advice Needed

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Car/Finance Advice Needed

Old 09-15-11, 09:28 AM
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Car/Finance Advice Needed

Hey everyone, I was hoping to get some advice on my car situation.
I currently have a 95 Corolla(187k), 97 Tahoe Z71(231k), 02 Grand Cherokee Overland(117k) and 78 Jeep CJ5(undergoing restoration). Until earlier this year I only had the Tahoe and CJ5, but my parents passed on the Corolla to me for good gas mileage(28mpg vs 10-14), then I bought the Grand Cherokee back in April when I originally intended to sell the Tahoe.
The question is, do I keep the Tahoe or Grand Cherokee?
The Tahoe has 231k miles but runs very strong and has no leaks or any other problems. The trans and rear end were rebuilt at 186k, I have done a lot of work and solid maintenance in the four years I have owned it, while the PO spent $10k in repairs in 06-07 before getting fed up and selling it to me.
The Grand Cherokee is in excellent condition with no issues and low mileage, and beats the Tahoe in every way, hands down. However, I'm paying $250/month for it.
Finances: Three years ago I had ~$16k in credit card debt. I have since cut it down to ~$7k, as I'm managing my finances much better these days. I work two jobs, I'm working towards my MBA and I have two roommates(each has lived with me for 15 months). I have $2k in savings, and after all monthly bills/food/gas are taken out, I have $400/month left over as play money/savings. I could probably sell the Tahoe for $2500-$3000 and build up a decent savings account, or use the money to pay off a large chunk of credit. If I get rid of the Grand Cherokee, I save myself $250/month, but don't have money to cut down on credit initially. The payment isn't killing me, but if one of my roommates leaves I lose a big chunk out of my "free" money each month.
I already cancelled cable, going to cancel gym membership(was given equipment for my house) and I will be going to a basic phone from a smartphone(cut bill in half).
What would your advice be? Whichever one I keep will be used for long-distance trips(only a few a year, the Corolla isn't reliable for this) and hauling parts, etc. around. Daily driving will still be in the Corolla until it croaks.
The CJ5 is not being sold, as the project should be completed by November.
Old 09-15-11, 09:42 AM
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Re: Car/Finance Advice Needed

If the interest rate on the Cherokee is higher than your CC debt, get rid of it.

If it's lower, sell the tahoe.
Old 09-15-11, 09:46 AM
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Re: Car/Finance Advice Needed

You have two roommates, no cable, and 4 cars of your own?

If you can't sell them, put them at the bottom of the lake and get cable TV. Not sure what to do about the cars.
Old 09-15-11, 10:26 AM
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Re: Car/Finance Advice Needed

Sell all vehicles and ride the bus = finance win

Keep all vehicles = fun win

What is more important to you? Having some extra money or having extra vehicles?

We also need to know the interest rates on your car loan and your credit cards, and how much total you owe on the car loan.

Is there a lot of worry about a room mate leaving?
Old 09-15-11, 12:01 PM
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Re: Car/Finance Advice Needed

In summary, you have negligible savings, $7k of debt, and 4 high mileage vehicles that you have to pay for insurance and registration on. Considering that best case scenario you only have $400 left over at the end of the month, I would sell all but one vehicle and get out of debt. In your precarious financial situation, it would take 17 months to pay off the debt assuming you sent every penny of your "free money" to credit cards. So in short, you probably shouldn't own 3 cars and be restoring a fourth one.
Old 09-15-11, 04:24 PM
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Re: Car/Finance Advice Needed

You have way too much money in cars, and the maintenance/upkeep + insurance + registration is killing you financially. I would sell at least 2, and keep one practical and one fun car, but you would be better off to sell 3 and keeping 1. Is restoring cars a hobby for you, it's unclear why you would need four? Most people take one of two options, they finance a new car so they aren't paying for repairs and maintenance, or they have no payments but potential repair costs for older vehicles. Right now you are balancing both. How much longer will you be paying on the Cherokee? I would probably get rid of it too, there is no reason to finance an 02 car when you already have others. Save up and pay cash.

$400 doesn't leave you a lot of room in your budget with four cars that could require repairs at any time, and housing where you are reliant on roommates. The $250 a month is killing you, you just don't realize it because the bleeding is so slow.
Old 09-15-11, 05:02 PM
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Re: Car/Finance Advice Needed

If a man is living right, he should have 6 or 7 cars minimum. You need to acquire more cars, and begin renting them out as sleeping space for homeless people. Oh, and if they try to pay you in wooden nickels, by all means accept them. They are valid currency.
Old 09-15-11, 05:03 PM
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Re: Car/Finance Advice Needed

Set the cars on fire and collect the insurance money.
Old 09-15-11, 06:46 PM
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Re: Car/Finance Advice Needed

The CJ will take of that on it's own.

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