I purchased a car in 2024. It’s a 2024 Mazda3 with 7k miles on it. I purchased the car for $24,000. I put down $5,000 but my interest rate is really high(11%).
I have 37 months remaining on my vehicle. Payment is $413 a month. At the time I was working around 60 hours a week in construction. Fast forward to 2026 my hours are getting cut and I’m only working 4 days a week. I make $29 an hour.
I have around $7,000 saved up. I owe $16000 on my vehicle and it’s worth 18k trade in.
My credit is bad due to a credit card in collections. My score is 608. I’m just really scared on keeping this car and being unemployed in August(when my project ends) or pay for a beater and the vehicle breaks down.
Is it smart to sell my vehicle and buy a beater?
byu/Expensive_Bike_8308 inpersonalfinance
Posted by Expensive_Bike_8308
11 Comments
yes. a car is one of the best debts to have as it’s easy to get out of when you’re in a sticky situation. if you’re in a situation where you have to ask if selling your car is the best situation it’s usually the right choice it’s just hard to pull the trigger
You’re slowly waking up to being a mature adult being fiscally responsible. Good for you man most people never do. Sell it take the loss and get an old Honda. That being said don’t trade it in sell it. You’re not working 5 days a week you can take the time to clean it fix it and list it for a higher price and sell it privately. In the meantime research and find a used reliable car that’s in your budget.
A beater can eat up thousands in repairs every year, personally I would say keep the car until you have a better idea of what your work situation will be in August. You aren’t under water, so you have options.
I was almost 60 before I bought a new car. Always bangers for me. Finance charges are a killer.
Generally it’s better to just keep the car you already have since the dealer takes a cut of every transaction. You want to engage in as few transactions as possible.
But is that correct you’ve only driven 7,000 miles in 1.5-2 years!?!
If that’s accurate then you have *much* less need for transportation than average. So you should certainly try to spend less on transportation per month if possible. (Assuming a new job doesn’t change that.) A cheap used car would also be cheaper to insure (and you can do liability only.)
Does it have to be a “beater”. I’m sure you can source a reasonably priced car that is reliable.
Have you tried getting it refinance at a credit union to lower your note? That Mazda would probably last you for very long time.
Try to redo first or second gif and pay off asap
Why don’t you just refinance??
Expensive cars keep poor people poor. Sell the POS and lose the payments. “The rich rule over the poor, and the borrower is slave to the lender”
Edited*
I have driven “beaters” my entire life. Despite making well over 100k a year. I drive a 2004 and a 2010.
I have friends driving 90k BMW’s. I’m definitely not impressed.
We work jobs we hate. To buy shit we don’t need. To impress people we don’t like.