I live, write, and garden in the PNW with my husband of 27 years, disabled daughter, college-aged son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!I don't know why I keep torturing myself by looking at used Toyota Sienna's online at the two local delearships near us. I've found two that would be perfect for what we want. Well, other than color, and when you're buying used, you don't get much of a choice in the matter. They are both around the same price, just under $28,000. They both have leather seats and FWD. One is a 2006 LTD with 54,000 miles on it. One is an XLE 2008 with 34,000 miles on it.
What we own right now is a 2009 Toyota Matrix with about 33,000 miles on it which we actually bought in April of 2008 (they had a very early model year. So in April we'll have had it for 3 years. It still has 2 years left in the car loan and we owe $16,236.70 on it. Because of the stupid brake recall thing, the Matrix hasn't held it's value like it would have done without it. So for a private sale it would be worth $15,500 or so, and for a trade in value it's worth $13,600. That's a difference of $2,636.70.
Everything I've ever read about finance says don't roll over an upside down car loan into a new car loan. I know we could come up with about $1500 of that money, but that would still leave us $1136.70 upside down. I could temporarily slow our debt payback to come up with that, too, but I really don't want to do that.
I wouldn't even be thinking about a new (to us) car right now if my children would stop growing! My daughter (who sits behind me when DH is home) and I are constantly jockeying for leg room in this little car. Because of my bad knee, I can't go too long without being able to stretch it out. It makes longer car trips unbearable. DD is taller than I am now, and she feels like she's always squashed into the space allowed her. And so do I.
So far my son isn't having too many problems, he sits behind his dad who has to have the seat even further back than I do. But he's about to turn eleven and he's going to grow. He's already past my chin. We're running out of space and there's also very little space in the back for shopping. One large case of toilet paper and you're lucky if you can fit anything else back there.
The plan was (and likely still is) to get through this year of debt repayment and then use the money that was going for that to finish paying off the car and then trade it in. And also to sell the Crown Victoria which KBB says is worth about $2000 in a private sale. It's a 1992 and in excellent running condition, just needs a lot of cleaning in the interior. If we could get $2000 that would go towards paying down the car loan and getting us close to having the value of what we owe left.
But my mind keeps saying that we ought to just go for it. Used Sienna's in such good shape are really hard to find. The fact that there are two at two different dealerships (so we might be able to use that against each salesman to lower the price) is even more rare. Our payments would be slightly less than what we're paying now and the loan would be for four years instead of the two we have left. We should qualify for the 2.9% loan since we've paid off $50,000 worth of debt since the last time we applied. But even if our interest rate stayed the same as it is now we'd still have payments around the same (about $10 difference) and a four year loan.
Why is this pulling at me so hard? This is the reason I won't go and look at houses yet. I'm afraid I'd fall in love with something before we were ready.
I guess it's just a question of comfort, really. Are we prepared to continue being squished every time we go somewhere? To take rental cars whenever we go on a road trip? To make smaller, more frequent grocery runs because of a lack of storage space? To never be able to haul the kids' friends around?
Am I being short-sighted in sticking to our plan? Or is this an investment worth making since it'll really cause no difference to our bottom line of how much money goes out to debt each month?
We Need It, but do We Need It Now?
February 27th, 2011 at 09:37 pm
February 27th, 2011 at 10:08 pm 1298844508
A $28k vehicle is not a need. IT's a want. Plain and simple.
What did I do when I outgrew my last car? I sold it for $3k and bought a $1k sedan. We had wanted a minivan all along. We waited until we felt comfortable buying a minivan - took 3 years? (We had the cash along, but wanted to make sure we didn't need the cash - with new babies and all that). The sedan had many years left in it when we sold it.
As such, I think you have a ton of other choices than the $28k Sienna. You don't have to be so extreme, but there are a ton of bigger vehicles that will do, in the below $10k range. Nice ones.
All that said, if it is something you really want, not saying not to do it. I think you can hold off, think outside the box, and come up with a much more sound financial plan to own this vehicle, is all.
February 28th, 2011 at 12:26 am 1298852814
Any Sienna we've looked at in the past that's been under $20,000 has been trashed or has far too much gas mileage. We want something we can drive for the next ten years, not something that's going to break down every other year for the next decade. We don't want an SUV, they're too difficult for me to handle with my wrist problems. We don't want another sedan as they are so low to the ground it makes it difficult for me to get in and out of without putting strain on my bad knee.
And I prefer the car to be certified. We've had good luck with used certified vehicles and bad luck with non-certified vehicles. You just aren't going to find certified in a minivan (of any kind) for under $10K. At least not where I live.
February 28th, 2011 at 02:35 am 1298860510
Adding $28K auto + taxes & fees to $25,300. CC + $2K underwater on Matrix adds up to approx $55,000. Have you verified eligibility for a 2% loan? How many years will you be paying for the Sienna? 2016? Are you comfortable with that much consumer debt? Will your son be in college before the car is paid off?
Would you consider PT employment to pour into servicing the car debt?
February 28th, 2011 at 03:22 am 1298863332
Yes, we are eligible for the 2.9% loan. After this year is over we will have $4000 a month to throw at any car payment.
Mostly I was posting about it because I am dreaming and knew that I needed to be talked out of it. We have a plan and that plan needs to be followed. And I need to stop looking at the pretty Siennas for now.