My wife and I will be filing for CH7 eventually-not sure when as she is employed now but won't be after June of next year (she is a teacher who won't be rehired for the 2012-2013 school year due to budget cuts). Before we file we need to get her a new car, first because the car she owns right now doesn't really work for our growing family, and second, it will help us qualify for CH7. Right now we own three vehicles:
2003 Ford F-350 - This is my daily driver. It has 200K miles (it's a diesel) and is a little banged up, there's rust, a few things don't work correctly, etc... Edmunds "True Market Value" on it is about $8000. I owe a little less than $1900 on it with my last payment coming in May 2012.
2001 Toyota Corolla - This is my wife's daily driver. It's in decent shape but it has 160K miles. Edmunds TMV is about $3000-we own it outright.
1991 Toyota Pickup - I inherited this truck when my uncle died-he wanted me to have it. It's beat up, rust holes in the floorboards, 150K miles, leaks, burns a little oil, and is bare bones (no power options, no AC, stick shift, etc...). Obviously its in rough shape, but it is a 4x4 and runs well. Edmunds TMV is $300.
The idea is to sell the Ford and use the cash (or some of the cash) generated from that to purchase something newer for my wife. We are looking at certified pre-owned Kias because we want to make sure that if it breaks down or something catastrophic happens (engine goes bad, etc...) post BK that we don't find ourselves having to resort to credit to pay for it. If we purchase a used 2009 Kia certified pre-owned from a Kia dealer we will get the balance of the 10 year/100K mile powertrain warranty. Once she has a new vehicle I will use the Corolla to commute to work and the Toyota Pickup will be kept for bad weather days, hauling firewood, etc... The question is, how much cash do we put into the car? Federal exemptions will cover the pickup and Corolla, but in order to get a reasonable monthly payment we'll probably have to put a lot of the money from the sale of the truck into the new car. Is this a good idea?
2003 Ford F-350 - This is my daily driver. It has 200K miles (it's a diesel) and is a little banged up, there's rust, a few things don't work correctly, etc... Edmunds "True Market Value" on it is about $8000. I owe a little less than $1900 on it with my last payment coming in May 2012.
2001 Toyota Corolla - This is my wife's daily driver. It's in decent shape but it has 160K miles. Edmunds TMV is about $3000-we own it outright.
1991 Toyota Pickup - I inherited this truck when my uncle died-he wanted me to have it. It's beat up, rust holes in the floorboards, 150K miles, leaks, burns a little oil, and is bare bones (no power options, no AC, stick shift, etc...). Obviously its in rough shape, but it is a 4x4 and runs well. Edmunds TMV is $300.
The idea is to sell the Ford and use the cash (or some of the cash) generated from that to purchase something newer for my wife. We are looking at certified pre-owned Kias because we want to make sure that if it breaks down or something catastrophic happens (engine goes bad, etc...) post BK that we don't find ourselves having to resort to credit to pay for it. If we purchase a used 2009 Kia certified pre-owned from a Kia dealer we will get the balance of the 10 year/100K mile powertrain warranty. Once she has a new vehicle I will use the Corolla to commute to work and the Toyota Pickup will be kept for bad weather days, hauling firewood, etc... The question is, how much cash do we put into the car? Federal exemptions will cover the pickup and Corolla, but in order to get a reasonable monthly payment we'll probably have to put a lot of the money from the sale of the truck into the new car. Is this a good idea?
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