Background: I own a 2023 Subaru Crosstrek that I bought new in 2023 worth (according to KBB) about $25.2k. My loan on it has a little under 3 years left, an $18.4k balance at 3.9%, and thus a raw equity of roughly $6,800. Payment is $589/month.
I make $70k, spend about $30k and have zero debt besides the car. I max all of my available retirement accounts, own my 1 BR condo outright, and shovel over two grand into my Vanguard brokerage every month. The plan is to buy a house in 2026. Affording the car is not an issue (although it's technically well over the mythical 10% net spend on a car payment).
The issue is, I hate owning a car. I hate driving it; I hate parking it; I hate maintaining and insuring it. If it disappeared from my driveway tomorrow, I would celebrate. This is the first and only car I've ever owned or driven (I'm 35) and I bought it for the completely wrong reason. Essentially, I believe that women will never want to be in a relationship with me if I don't own one, so out of desperation last year I went and bought one.
In 16 months of owning it I've driven it 5,500 miles, and over a thousand of that was to a family retreat in Tennessee. I drive barely 4,000 miles a year. I don't need a car. I bike to work; I bike to the grocery store; I can bike or walk comfortably anywhere and everywhere in my city. My car goes weeks without being driven from time to time. This car has zero emotional value to me, and essentially zero utility. I would sell it except that certain people will think I'm a bum with no transportation otherwise.
From a strictly personal finance point of view, what's the best option?
Option A: Keep it. I don't get much out of selling it outright, and by making payments I will build a ton of equity. In three years when I pay it off it will likely still be worth $20k+. Decide what to do with it in 2027.
Option B: Trade in/sell for something used. The used market sucks, and even something 5-8 years old is likely going to be $15k or higher. I would either take on a smaller loan with worse financing than I have now for an older car, or add cash to buy outright. I think this is objectively the worst option.
Option C: Sell it and do not replace, accept that I'm going to be severely limited in social and dating situations, and just suck it up.
Submitted June 16, 2024 at 12:50AM by HasCoffee_ https://ift.tt/6fhx1tk
