TL;DR: I'm considering selling my car because I Just moved to the downtown of a city in the southern USA and I could save a minimum of $484 per month by eliminating car payment, insurance, parking, and fuel.
Job
6-month W2 contract-to-hire (NOT 1099)
Monthly salary: $9,500 during the contract.
Not sure what salary would be offered after contract period is over.
Monthly Expenses - $2,669
Rent: $800 (utilities included)
Car payment: $200
Full coverage car insurance: $142
Fuel: $42
Parking: $100
Phone: $55
Gym: $22
Food: $300
Entertainment: $200
Health Insurance: $165
Credit Cards: $280
Student Loan Payment: $360
Credit Card Debt: $15,000
Car Payoff total: $4,900
Kelly Blue Book trade-in value: $5,200 to $6,500 (based on "Good" condition)
Kelly Blue Book private party: $7,400 to $9,300 (based on "Good" condition)
So, I'd assume I would come out ahead by $1,000 to $4,000 by selling my car now.
There are five primary reasons I want to sell the car:
- I just moved to downtown of a city and live 6 blocks from work
- Grocery store is half a mile away
- I want to focus on paying down debt
- I could eliminate $484 in monthly expenses (not including maintenance and repairs)
- I could more rapidly budget for a downpayment on a house
To elaborate, I just moved to the city this weekend. I've been thinking about getting rid of a car altogether for several years. Now seems like a good time.
However, the job is only a 6-month contract-to-hire (W2) position though. This 6-month contract-to-hire is just how the company does their hiring for software developers. Just to be clear, it is NOT a 1099 job. Prior to accepting, the company assured me that there is a high likelihood I will get converted to full-time within 6-months. This is just the way they do hiring here.
This job is located in the south. The average high in January is in the 50's. I'm coming from the midwest where the average January high temperature is in the teens.
I drive a 2013 Nissan Altima. No issues mechanically. Great fuel mileage. But I could easily buy another if I'm so inclined in a couple years.
I have 27 months of loan payments left on the car. It has 89,000 miles, and I'll need new tires in the next 10,000 miles.
Lastly, I read Mr. Money Mustache a lot, and he makes a lot of good points about how expensive cars are. A few years ago I lived close to work and downtown in a different state, and I just biked everywhere. I would only drive when the weather was bad.
I'm a single guy so stopping by the grocery store on the way home is simple and easy. I've done it before.
My primary concern with selling the car is if I don't get a full time offer in 6-months, then I might have to buy a car around that time. There are a lot of software jobs downtown though, so I imagine I'd be able to find a job close to where I currently work.
I'm planning on buying a house in the next 18 months as long as everything is going well with the job. So, eliminating credit card debt and saving $35,000 for a down payment are high on the list.
I would appreciate any recommendations you have, or things I need to consider or reconsider.
Submitted April 29, 2019 at 07:36PM by UIhomelessAPIGuy http://bit.ly/2GOuvUT
