How would I be able to afford either the replacement or new car?

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  • #80859 Reply
    Julie

      Hi so I have a dilemma and I am open to your input.

      My problem is that my paid off car’s transmission is going bad very soon and a replacement cost online is quoted at 3500-5000.

      The first half of my dilemma is whether I should just pay to get the transmission changed or should I just go into a newer car? Current mileage is around 127k and it’s a 2017 Ford Focus.

      Second half of my dilemma is how would I be able to afford either the replacement or new car? My savings is about 700 with another 3k in a vanguard VTSAX account. I also have around 11k in my 401k/IRA. another curveball is that I just set up a bill consolidation loan with my fiancé for another 8k for our combined credit card debt to lower the interest for our accounts.

      #80860 Reply
      Jule

        I’d not pay to fix it. Try to sell it asap and buy a used Toyota for $6k. If necessary, use your $3k in Vanguard to pay for it.

        #80861 Reply
        Gina

          Get a second job so that you can pay cash for a Corolla. You may benefit from Dave Ramsey program.

          #80862 Reply
          Scott

            Not for a Ford Focus.

            If it was a Toyota or Honda, probably.

            A Ford Focus…no.

            Buy a 15 year old Toyota Corolla, preferably a manual(stick shift)

            It won’t be pretty…..but it’s better than other options.

            #80863 Reply
            Theresa

              I would hesitate to spend money replacing that transmission. That’s decent mileage for some cars, but is a bit on the high side for a Ford. If you keep that car, you’ll be putting more money into it in the future beyond this repair and that is money you do not need to spend.

               

              That said, you are in a tricky spot for a replacement vehicle. Look into interest rates for a used vehicle loan and compare those to your returns in the Vanguard account. If an interest rate on a loan is lower than what your $$ is currently making, I’d take out a modest loan for the replacement car. The Ramsey fans might eat me alive for that one, but having a reliable vehicle is probably a must for getting ahead (gets you to work, allows for side hustles, etc), so as long as the interest rate and payments are low enough for it to make sense, that might be the best way to go to get into a functional Toyota or Honda that won’t cost and arm & a leg in future repairs.

               

              Alternately, if you are really trying to avoid a car payment, assess the possibility of being a 1 car household. Is it feasible for you and your fiance to share a car while you save up for a replacement? I’ve got 2 coworkers rocking that lifestyle right now. Both have said it was an adjustment, but what they may have lost in the convenience they have more than made up for in savings on registration fees and scheduled maintenance.

               

              Best of luck with this!!

              #80864 Reply
              Russ

                Yeah stay away from fixing it if you can. I worked for Ford for almost a decade, it’s not worth repairing that car. Those are known to have trans issues.

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