Which car would you give up in bkcy?

[sofarindebt]

I know it is in our best interest to give up one of our vehicles, but we can't decide which one. Here they are:

2001 Nissan Maxima - owe $9800, worth about $6000, 155K miles ($298 car payment)
2004 Chevy Trailblazer - lease with 2 yrs remaining ($560 car payment)

We have 3 kids under age 3 that are all in 5-point harness carseats, so I want to keep the truck, but the car is cheaper and we want a minivan eventually.........

advice or comments?

[JollyGG]

I know it is in our best interest to give up one of our vehicles, but we can't decide which one. Here they are:

2001 Nissan Maxima - owe $9800, worth about $6000, 155K miles ($298 car payment)
2004 Chevy Trailblazer - lease with 2 yrs remaining ($560 car payment)

We have 3 kids under age 3 that are all in 5-point harness carseats, so I want to keep the truck, but the car is cheaper and we want a minivan eventually.........

advice or comments?

Personally, I would give up the trailblazer as long as you can fit the kids in the car. The car payment is cheaper and you will own the car outright at the end. The Trailblazer is a really high payment and you won't own it at the end.

I hear you about wanting a minivan. We are planning and waiting until at least a year post-BK to buy one. I really really want one but know that I need to do things the smart way.

Have you filed yet?

[BKOnce]

Gasoline

[HHM]

Give up the Nissan. You are upside down, it is old, with a lot of miles. However, the Nissan probably costs less to insure and it's cost of ownership is lower).

The trailblazer is a lease so you are already locked in (sure you can get rid of it in BK) but financially, you don't really lose money, you're paying for the depreciated value for only those years you lease the car (unlike being upside down in a car), whatever you do, do NOT purchase the trailblaze at the lease expiration. Also, if you maintain the lease after BK, odds are, when the lease expires, you will probably be able to lease again at the same terms or better). Also, since it is a lease, it has a warranty for the length of the lease contract.

Granted, this recommendation assumes you can AFFORD to keep the trailblazer. Really, the fist question is, which one can you afford to keep. If you can afford both, and the keyword, "easily" afford, I think it makes more sense to keep the trailblazer.

[Spartan]

Let's look at the numbers.

Chevy : 2 years of $560 a month. That adds up to $13,340. Money that is down the drain, in exchange for driving a nice truck for 2 years.

Maxima : Owe $9800, paying $298 a month. Total $9,800 in 33 months. Resale value at the end of 33 months, is probably $2k.

The $260 that you would be saving ( if you pick the Maxima over the Chevy), would add up to $8580. Plus we are not adding the gas. Maxima goes for 25-30mpg while the Chevy is 13 mpg.

So, if you go with the Maxima, on month 34, you would have enough money to buy a very good used car. Heck, you would have enough down payment to buy any new car with an easily affordble payment. Also, by then your credit rehabitation should have been long completed.


That is just one way of looking at it. Some people would rather not defer gratification into the future..... To each his own.

Whatever you decide, best of luck to you.