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car and credit card.

January 19th, 2016 at 03:30 pm

So, we have been paying off our only credit card and finally have it almost paid off, but now as we start making more improvements financially our car has decided to make a new noise...ka thunk a thunk... The reason why we ever used the card was because of the car! It will probably cost around $300. We have $550 in our emergency fund and all our bills have been paid this month. We also have at least $350 in our checking for misc. i already grocery shopped for this week and next so we are good there. This car is constant and never ending. if we sold it, it would have to be sold for parts or as is. As of now, we do not have enough to get a new car and still have a $3,500 hospital bill due. Our plan is to pay the last of the $1,700 credit card, then $3,500 hospital bill and then student loan of $54,000. It looks somewhat discouraging, but like the tortoise, we keep going. We will also find random things to sell etc, which we have done in the past too. The good news is that both of our credit scores went up again.

4 Responses to “car and credit card.”

  1. snafu Says:

    I know from experience how frustrating it feels to have done everything right and being 'rewarded' by things that go oh so wrong. You've come a really long way and the issue with the car will be a numbers game. Reviewing 2015 numbers, what was the total cost of car repairs? I suggest a bit of research, what is your FICO score, what is the best interest rate you see on line at BankRate , having decided in advance the 'bells and whistles' extra features you must have and willing to pay. Some vehicles year, make, model will have extras that add no value to you and need not be in the 'deciding' factors. You will need to decide whether to buy from a dealership or privately. Before a dime changes hands, you must verify the warranty can be transferred and it's process. At a dealership the process is straight forward and you can insist they not charge for the few minutes it takes to complete the form...in spite of the tale they tell.

    The really hard work is finding the 'best buy' vehicle. One favourite is to send an e-mail to sale lots and private sellers within reasonable commute, asking for 'bids' on make, model, year desired. They make their best profit on financing so asking for their rate is helpful even if you already have nailed a loan with another place.

    Finally, I hope you've an honest, trustworthy mechanic. Does he work from 'book rate,' or the time it took to do the work? The dealerships are the most expensive vendor. If there is a college or high school that teaches automotive nearby, it is worth the time and effort to see if they can diagnose and/or do the work. [sorry to be so wordy]

  2. snafu Says:

    Appologies, my computer is dropping sentences and I don't understand WHY

    I was trying to say...check for the best loan rate from your bank and a Credit Union, they can also tell you the KBB value of your current vehicle and the one that meets your family's needs [year, make, model] It's useful to check an objective source like Lemon Aid, likely available at your library. While I understand the temptation of a shiny, new car, from a dollar and sense perspective, the depreciation of the first two years is horrendous! Worse yet, basic rule of thumb suggest people plan payments so that the car is fully paid out in three years. The huge advantage is continued warranty and opportunity to save for next vehicle.

  3. turning a new leaf Says:

    @Snafu your advice is always so helpful and really puts things into perspective. I really appreciate your nuggets of wisdom. I spoke to my husband about your suggestion and he agreed. At this point we have spent around 10K with the initial purchase of the car and all the fix ups. We will take the car in one more time and fix it if it is under $300. This will also be our last visit and we will now put saving for a reliable car on our radar. (you know it's bad when the husband doesn't like driving it). lol. At this point we are also trying to figure out ways to make more money.

  4. snafu Says:

    Try to get to the library and look up your current car in Lemon Aid to see what they list as typical repairs. Are those a match for the repairs thus far?

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