- July 22, 2008 at 3:52 pm #260408
It certainly depends on how much your loan is for and how much the car is worth.
For example, my stepson’s car is worth about $5,000. He currently owes about $2,500 on it. If he sells the car for what it’s worth, he’d take that $5,000 and pay off the remaining balance of the loan. Then, he’d have $2,500 to pay towards a beater car.
— On Thu, 7/24/08, Herlean
Subject: Re: Budget101.com : Re: Dave Ramsey Total Money Makeover
Date: Thursday, July 24, 2008, 12:25 PM
I have a question about selling the car for a beater.
If you sell a car that has a loan on it, you are still responsible for paying that loan off. So, if you sell the car and get a beater, even paying cash for the beater, you still have the car payment for the car you no longer have. Or am I missing something? It is not like you get the money that you are currently paying for the car freed up to pay on your other debts.
Can someone clarify this for me if I am mistaken?
— On Thu, 7/24/08, Ria wrote:
Have you considered selling your car and getting a beater car until you’ve been able to pay down your debt?
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