Hello! I'm in need of advice. We are stripping down to barebones in efforts to pay down debt, live with more financial freedom, and reduce our monthly cash outflow. We have identified our vehicles as an area in need of right sizing.
We have two vehicles, both with loans and a few years left on them. At the time of this post, we would break even or make a little money if we sold them private party. If we trade them in, I would expect to be negative about $1000 on each.
Vehicle 1 - $5,900 on the loan - 2006 Nissan Pathfinder LE 145K Miles - $169/month
Vehicle 2 - $10,500 on the loan - 2013 Kia Soul ! 40K Miles - $329/month
We only need one vehicle and have decided to get a larger SUV for family vacations, pulling a trailer, etc. I'm looking in the $15,000 range at used Yukon XL or Suburban.
Anyway, I'm curious if we should spend a few months trying to sell these privately, trade them in at a slight loss to save the monthly payments and reduce insurance, or do a mixture of both?
My credit is very good and my income is high. We own our home and have about $50-75k equity based on the latest appraisal. My hope is to keep our monthly payment at or below $300/month on the single vehicle. If needed, I could use home equity money to pay the negative vehicle equity, making the trade in of both a wash.
Please let me know what else may be needed to model the options or if I am over thinking it all. Thanks!
Submitted July 20, 2017 at 08:16PM by MRGLAUCON http://ift.tt/2uHloAX
