This is to break a debate I'm having with my friend. She's looking for a new used car and has a small loan left on her old vehicle. She has money to put down on a new car but isn't sure what to do with the old one.
Options are:
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spend about $1000 for new tires and brakes and sell privately, netting a bit over the loan. Downside is time/energy to sell privately.
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Pay off the loan and then trade it in. Downside she'll lose money on the trade in.
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Trade in the car and add the difference to the new loan (expect about $2k.) Downside risk of being flipped in the new car.
She's leaning towards option 2, but that just seems like throwing money away. #1 would be the best, but also the longest. #3 would also work, and she could pay off more than the new loan every month, keeping her from being flipped and not depleting her savings.
But as I said, we're disagreeing on this and while it's not my decision, I wanted to see if anyone smarter than us with money can shed light on the what's the best use of her money.
(granted we all know having no car payment is best, but that's not the question posed here. She's decided on getting a new used car, so help making a wise choice is appreciated.)
Submitted July 06, 2019 at 08:13PM by KaliMau https://ift.tt/2Xx7qS4
