I love the sometimes-weekly Ask the Readers feature, even if I’m not great about sticking to my intended schedule. And usually I’m able to work with folks to condense their questions to a small space, which leaves me plenty of room to share my thoughts. This week, Martina sent me a lengthy e-mail that does a better job of laying out the pros and cons of her situation than I could. Read on to hear her dilemma.
I’m wondering if I should sell my 2007 Honda Fit. Or will this be a quick fix that may not pay off in the long run?
For the last several years, I’ve been trying to make it as a part-time adjunct community college instructor living in San Francisco. As everyone is likely aware, the state of California is experiencing a major budget crisis and education is suffering. As a result, I decided in 2007 to take a relatively low-paying but secure office job during the day and to continue teaching in the evenings at one of the two colleges at which I had been working. This has been a wonderful way to have some financial peace of mind, do the job I love, steady my budget, and get on with paying down $30,000 in consumer debt.
Last week, I was told by my college that, due to budget cuts, I won’t be offered classes for the summer or fall semesters. Beginning in June, this leaves me with just my trusty day job which covers only my rent, utilities, and groceries. Period. No saving, no paying down debt. Nothing beyond survival. And I’ve only got a $500 safety net in savings. If anything unexpected should happen, I’m deeper in the red.
At this moment, I can only see three ways to improve my financial situation:
- Get a higher-paying job, or a new second job;
- Get a cheaper apartment; or
- Sell my car.
#1 is something that I’ll be working toward. Finding a better-paying job in this economy is a tough proposition at the moment, but not an impossibility. I would also like to go back to school one night a week in order to get an additional credential that will better position me for more solid, full-time teaching jobs (and, uh-oh, it’s going to cost me for that weekly class). This additional schooling will take 12 to 18 months.
#2 is non-negotiable. Although it costs 55% of the take-home salary from my day job, my apartment is my home, and I love it dearly. I’m in an super-walkable neighborhood that’s three blocks from my day job. Most everything a person could need is within a five-block radius, and I’m three blocks from a major streetcar line. It provides great quality of life. My place is right next to Golden Gate Park — lots of free fun and exercise!
#3 is very attractive to me at the moment. I bought this car in 2007 because the main college that I worked at is 30 miles from S.F. Now that I don’t see myself making this commute through the rest of 2010, I feel foolish paying for insurance (about $125/mo.), parking tickets (sometimes $0, sometimes $110/mo.), and for the car itself. (I should mention that a parent loaned me the money for the car, and I pay $200/mo. for that.) I could sell this car for about $10,000, which is almost exactly the total of my remaining credit card debt.
So, here’s my question: Is it better to keep a good, fairly new economy car in the long run as things could improve next year and I may want to be driving again and have this good car? Or should I sell it for what I see at the moment as having greater financial freedom? I live in a very pedestrian-friendly city, and I don’t plan on leaving San Francisco in the foreseeable future. Would selling this car be cutting off my nose to spite my face, or would it be a sound money move?
Thanks for your time and consideration. Any input is very, very appreciated.
To me, it almost sounds like Martina knows what she should do. Based on my own personal experience and preferences, and based on what she’s shared in her story, I’d sell the car, too. It sounds as if her apartment contributes greatly to her quality of life, so she’s probably best served my keeping it for now.
But I also think she should absolutely do what she can to boost her emergency savings as soon as possible. Maybe even take a weekend job working retail specifically to save for a rainy day.
If at some point in the future Martina decides she does need a car, it might make sense to pick up a beater as a stopgap. (Or join Zipcar.)
What do you folks think? Should Martina sell her car or keep it? What’s her best bet in this situation?
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I would definitely sell the car. It sounds as if a car is not a necessity for Martina. If her situation does change a year from now, she can always buy a used car at that time.
Another thing to think about is getting a roommate. I am not sure if her apartment has an extra room, but a roommate could definitely ease the crunch.
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A car is definitely a money pit–since she’s living in one of the few cities in the US where owning one is not a requirement for employment, she should take advantage of that and sell it. It’s not big enough to sleep in if things get really tough, anyway.
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Sell the car and put a couple thousand dollars from the sale into your emergency fund. Use the rest to pay down debt. The money saved on car expenses can be used to make monthly payments on the remaining debt.
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Martina is educated, responsible, and on the right track.
It sounds like she may need to slow down or backtrack on paying off her debt. Sometimes you need to do this to enjoy the present. (And it doesn’t sound like things are enjoyable right now.) You don’t want to make things worse. A downward spiral is a terrible thing. My recommendation would be to use the tools and credit available to maintain her current standard of living. It’s not Martina’s fault that the economy is a little poor right now. Things will pickup and there is nothing wrong with borrowing a little against future income.
The hassles of moving or changing lifestyle, and lost value in selling her car, are efforts better spent investing in herself and career. If she needs a car a few years from now, she will have to spend a premium to get one. (I always see this blog as pretty anti-car, am I correct in this assumption?)
I recommend negotiating with your college to meet somewhere in the middle. Explain that if you cannot teach the classes, you need a supplementary bonus or raise to help mitigate the lost income. Meet your employer somewhere in the middle here. You can also offer to pick up extra projects, assist with student retention, etc. Perhaps your current employer can assist in picking up the tab for your additional credentials. Surely there is mutual benefit to both the college and you.
Good luck.
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If she has a parking spot off the street I would consider just not driving the car. She could register it as not being driven and then cancel the car insurance. She would save on gas and car insurance and have the option of reinstating it when she needs it.
I would also consider getting another job to help build that emergency fund.
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#1- my thoughts excatly.. get a room mate even for few months, and also sell the car pay 75%of her debt and put 25% in savings/emmergency
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Sell the car. I have friends who live on the opposite side of the country in Boston and they do not own a car, relying on the T, buses, walking, etc., for getting around. If they do need to travel outside of the city, they get a Zipcar.
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Normally I’d agree with everyone. But if she sells that car now it makes the job search (a professional search, mind you) much more tedious. If she wants to find better pay, she may find she needs the car to get beyond that perfect 5 block radius, or the reach of the streetcar. I’d say consider a roommate, move home to the generous parents, and take that class to boost her credentials. You’ll only lose money in selling that car. It’s one of the cheapest cars in the market to maintain and gets great gas mileage (something she may need very soon). Besides, she got the loan from her parents interest-free. Once she gets that perfect teaching job she can move nearer campus and go car-free.
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Martina is not yet truly focused on her problem. Having *anything* that is “non-negotiable” such as a too-expensive apartment means she is ot yet truly ready to face reality–if there are other places to live that might be less burdensome. Of course, “$30,000 in consumer debt” doesn’t seem to have truly struck home either. If she can’t get a roommate, then becoming one somewhere to reduce her overhead would be very wise. Once the debt is paid and the financial situation less dire, there’ll be plenty of time for the “lifestyle” choices that would then be affordable. Obviously, the car should also go–it will only depreciate with time, and can easily be replaced should that become necessary. I would also consider another evening job to pay down debt faster, and embark on the additional class in another year when more of the debt is extinguished. There seems little assurance that teaching will be any more feasible even with the additional training, as the economy is not recovering all that quickly and California is going to take a very long time to recover. I do agree that some of the car money should go into an emergency fund, the rest to start a “debt snowball”. Finally, it is highly likely that if getting a roommate in the present apartment is not feasible that there is someone else in a similar situation in an equally advantageous location who is also considering taking on a roommate. That is definitely one thing I’d be checking out right away.
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If she sells the car, the first thing she should do is pay off the loan the parent made her to acquire it. Any leftover money should be split between the emergency fund and the debt.
This person needs to understand that even with two jobs she was relying on credit to get by. She needs to find employment that will support her, get the room mate if the net rent covers a lot of the deficiency, or realize she cannot afford to live in San Francisco.
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Good job on paying off $30K! Selling the car sounds a little short sighted though. It could limit the options of what other jobs or classes you can take; having had a job that needed it, I’d look for other jobs first before giving it up. I can imagine feeling trapped in the current job after it’s gone. Given how much it costs, I understand it looking like a good option though.
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I had the non-negotiable awesome apartment, too, only in Brooklyn instead of SF. I moved there from a horrible place with bedbugs and a leaky roof, and it was my security blanket. But when I realized that this amazing apartment was preventing me fe saving money on my big NYC salary, I decided to move. I found a cute place with a nice roommate for $1000 less per month.
It was hard leaving the beautiful old place. I had great memories there and, truth be told, I liked being the girl with the awesome apartment. But I was sacrificing real security for the semblance of security. And as it turns out, I lost my job a few months later and the extra cash I’d been able to stash came in really handy. I’ve been able to use this time to contemplate what’s next for me. If I’d stayed in the old place, I wouldve had to get a new job immediately.
Lower monthly expenses = more freedom. Sell the car and find a place with a roommate in the same neighborhood.
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In any other case, I’d say sell the car, but I absolutely LOVE the Honda Fit…. Okay, okay, I’m only half kidding. In her case, she should definitely sell the car considering her financial situation.
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Martina,
How much money do you owe on the car? Would $10,000 pay off your debt to your parents? Need to know how much net it would bring you. Would you have money left from the sale to apply to tuition for classes, or would the advantage be solely from not paying the additional costs of insurance, parking, tickets, maintenance, etc?
You might start by cutting out all that illegal parking
I would take a hard look at how useful the additional schooling is for earning potential and/or career advancement before putting yourself in more debt.
Housing is the biggest cost for you. Your location sounds ideal, so getting a roommate if applicable would save you a lot which you could put towards debt.
Good luck!
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Absolutely sell the car. It sounds like you’ve already made the choices that go along with it (live near where you work, live in a community not a subdivision, etc). My wife and I got rid of our car ten teen years ago and I’ve never looked back. Every time we have had a major life change people have told us ” oh, you won’t be able to get by without a car.” This includes both of us switching jobs, moving, and having a baby. Car is a money sink. we use transit when we need, take cab guilt free, and use a local auto sharing service whenever we want. This gives us a net savings of about $2000 per year. If we need to save more, we drop the cabs. as a bonus not having a car is also about no maintenance, no parking, no regular fueling, and really living in your neighborhood and knowing your local vendors.
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Martina
Don’t sell the car…yet. Selling the car is a short term, last resort solution. Like other commenters have said, it’s a really good car and you would loose money on it. It was rated a most reliable on consumer reports for goodness sake. You do have other options like…
Work for Kaplan. Teach SAT, ACT prep courses. If you are a good test taker you can even study and take one of their LSAT tests. Or MCAT or OAT or DAT if you are feeling adventurous. If you score high enough you can teach thier classes. And they pay decent money. You can even work your way up to be a teacher trainer. They are always looking for good teachers. Hours are normally at night and on weekends. AND you are still teaching!!!
I did this in college and it was great! Ask JD for my email and I can tell you more about the process if you have more questions.
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I agree with Megan (#10). However, I wouldn’t get rid of the car just yet. Try cutting costs…first of all, IMO, you are paying WAY too much for auto insurance ($125/mo.) and WAY too much for parking tickets.
I know younger people have higher rates, but unless you’ve had some violation or an accident, I think that’s too high. I pay $97 for three (newer) cars!
Increase your deductible to at least $500 (better to make it $1000 since you don’t need to drive very often, and keep the insurance savings to ‘self-insure’) and make sure you are listed as driving for pleasure, with low mileage (under 5000 miles/year) on your policy. Get all the discounts you can (and there are many); get a professional or student discount; take a defensive driving class for a discount; join a credit union for a discount; sign-up for auto-pay for another discount, etc., etc.
Why so many parking tix? Maybe you could use public transportation as much as possible to save on gas and parking tickets; I wouldn’t sell the car just yet since you are at a bit of a crossroads.
I understand that it may be hard to give up a beautiful home, but 55% of take-home pay is crazy expensive. Get a roomie or start looking elsewhere. Also, cut costs everywhere you can…and make sure to learn about and take advantage of any benefits offered by your employer (tuition reimbursements, Health Flex Spending Accounts, cafeteria accounts, saving incentives, whatever)…
Best of luck to you!
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I’m of a mind to get a beater. Sell the Fit, and get something cheap. I drive a 2001 Metro. I paid $4200 cash for it in 2004. It’s cost me about $2000 in repairs over its life (valves, timing chain, alternator). It gets 40 mpg. Every part is cheap, and it’s easy to work on too.
I understand that a car is a statement for a lot of people. I want a hotter car some day too. Right now, though, a car is transportation. It’s paid for, it runs great, it’s cheap. Those things help me swallow my pride (and even contribute to a perverse “look how frugal I am” kind of pride) and just enjoy having a car that’s not a big monetary sinkhole.
Besides, if you move to Texas, you’ll need a car. (I’m just saying; Texas has money for public education. Cali doesn’t).
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If you sell the car, would getting a bike (second-hand) extend your working range for new jobs? Or do you already have one even? You can commute a decent distance on a bike, and it’s often as fast as driving in urban areas as you can cycle at the same speed as the snarled up traffic.
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Keep in mind that car costs will be replaced by public transit costs, and that your family who loaned you the money is probably going to get kinda upset. I mean, they loaned you the money for the car, not for you to pay off debt, so if you sell the car, and still owe them money on it, you might need to pay them back first.
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I agree about biking. Also, this conversation should have more emphasis on public transportation (and zipcars are also a great option). There is no reason she shouldn’t be able to sell her car and get around fine — even to a new job/job interviews. I personally have been carless (to save $) for 9 months now in a not-very-carless-friendly city (Rochester NY) and have been fine.
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The deciding factor is the $125/mo in insurance and parking tickets (I face the exact same scenario, plus $100/mo for parking).
$125/mo + average $55/mo is $2100/year. How much will you be losing by selling the car? (What would you pay for a new one compared to what you’d sell it for?) My guess is you could buy a 3-year old Honda Fit couple years for the same $10k you’d sell yours for now, and have saved $4200 in insurance and tickets in the meantime.
I’d sell the car, pay back the parent, put $2k in emergency savings, pay off as much debt as possible, and then find a way to still make SOME payments to debt and not live in the red. That might mean taking on even a one-night-a-week type gig, tutoring, working retail, waiting tables, whatever.
Having a car in a big city like NYC or SF is a luxury. Get rid of it! Besides, there’s no guarantee you’d even need it for your next job.
Good luck!
PS. I have sold a car twice to finance a move and both times I was left wondering where the money went (security deposits, Uhauls, CC debt). Be intentional about what you do with the money and remember to prepare for the possibility of having to buy a car again.
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I agree with getting another part-time job, finding a room-mate and selling the car. ALL of them. And I’m not sure how much I would attack that debt just yet, although it’s part of the debt snowball plan of attack. I’m reading everywhere that six months’ of monthly expenditures is the norm in case you lose your job, and I’m putting off a little debt payment until later in 2010 in order to save more. The economy is so sluggish. I think the car must go, if she does nothing else. Good luck!
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@Holly
Where do you live? $125/mo is the best rate I can get and I have a clean record. And parking tickets are a fact of life here in Chicago, no matter how careful you are. At least for my job they are. NYC was the same way when I lived there and I’m guessing SF is not much different.
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My son lives in SF and has kept me up to date on the crazy costs of living there. I believe it has even surpassed NYC for the most expensive city in the country. Having just visited him I can appreciate how hard it is to find legal parking. Wow!!
All that said, if you truly intend to live within your means and lower your debt I would strongly recommend four immediate courses of action:
1. Sell the car – NOW! My son has lived in SF for 4 years without a car and has absolutely no problems with public transportation. If he really needs a car he just does zipcar. This is a guy that loves cars too. But he was smart, he did his research before moving there and sold his car before moving. He couldn’t imagine dealing with the parking costs, outrageous insurance (yes $125/mo is very realistic for SF) and all the other hassles of having a car in SF.
If you really need a car in the future you can easily replace it – by the way – next time DO NOT BUY NEW. Let someone else eat that depreciation.
For those who don’t live in SF and are counseling to keep the car – you cannot begin to imagine how much it costs to own, maintain and park a car in SF. I was shocked when my son went over the numbers with me. I was actually against the idea until I saw his research. Dump the car NOW!!!
2. Your non-negotiable apartment – yep – it’s got to go. That is just not realistic in that city. Housing is far too expensive for someone in your financial situation to be living alone. My son used Craigslist and has found two wonderful apartments with great roommates both times.
In his old apartment and his current one he has lived in a really cool places at 1/2 the cost! Be smart and take your time, interview your potential roommate carefully. In my son’s most recent move he did a very smart thing, he narrowed down the choices and then took his number one roommate choice out for lunch. They got to chat over a meal in an informal setting and he could tell they would definitely click in the day to day world of sharing an apartment. Can you tell Dad is proud of his smart son – lol!
3. Get the second job – pay off that debt! Take ALL of your take home pay from the second job and put it entirely against your debt.
4. I’m assuming you’ve completely stopped adding to your debt. If not you MUST do this immediately!!
I bet you knew the first three already have to happen (you’re just denying #2 for now) but the first key is really #4. You can keep trying to dig out of the debt but if you don’t stop adding to it you’ll never truly succeed.
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Key information missing: How much is owed on the car? Will it be sold at a loss? A “loan” is mentioned almost as an afterthought. Is she treating the loan as more of a gift/subsidy that she might get around to paying sometime?
Typically when you sell a car you have to pay off the (conventional) loan, and the payoff amount is a huge consideration. In some ways it is very good to have the option of selling and not being required to pay a secured loan right then. However, I’d be concerned about the idea that this implies continuing to carry a loan on a non-existent car.
I don’t know how anyone can assume she will be able to pay off the car AND have several thousand dollars for savings and credit card debt. I doubt it- unless the parent forgives part of the loan. It MIGHT make sense to pay off the credit cards, and basically convert the purpose of the parent loan, depending on the terms. But my first inclination is to pay off the loan for the item when it’s disposed of and reduce the monthly expenses by the $200.
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Sell the car! My last debt was a 2007 Honda Fit as well. We sold it last summer and I haven’t regretted it one moment. I now drive a paid for CRV and it gets way better gas mileage than the Fit, which was dragging a car payment book behind it
I had been in the car payment cycle since I was 19 (I’m 37) I’m glad to be free now. Just be sure to put a little aside each month to cover repairs.
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I agree totally with #13 med student. I would also add that In 2004 when the economy was pretty good, I had a car in great condition that I couldn’t even get one offer on. Sometimes selling a car is not as easy as it seems and you will have to make due with your bills in the mean time.
I was also a bit confused as to how much you owe your parents and how selling the car could pay off your credit card debt if you are paying $200./month for the car loan. I have a feeling it isn’t going to work out in the end to sell the car just yet. If it comes down to it, the FIT is pretty roomy, so you could live in it!
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Sell your car. Use the money to 1) pay the car loan money back to your parents, 2) establish some emergency savings 3) invest in your future by signing up for that course, and if there’s anything left 4) pay down some of that credit card debt.
You’ll now have an extra $325 a month to put towards your debt, which should diminish it pretty quickly.
I would think about using the extra time you’ve gained (through your job-loss) to pick up something else part-time to help pay down more debt.
I would not get a cheaper apartment. It only happens to cost you 55% of your take-home because your take-home just happens to be very, very low right at the moment. Once you get another part-time job, or get more money for this job, or get your teaching job back, that ratio will improve quite a lot without you having to give up a place that makes you happy, is convenient for your job, enables you to walk everywhere, and is convenient for your extracurricular activities.
It is not always about cold calculations. This apartment obviously positively impacts your life, increasing your mental and physical well-being. I wouldn’t put a price on that.
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I’m curious about the funds received on the car.
If you’re currently paying your parents back for the loan, wouldn’t they want it paid in full (or mostly paid in full) when you sell the car? How much would that leave you then?
I’m still erring on the side of “sell it,” but cautioning that you might not be able to put ALL the money towards debt/savings.
I also recommend building an emergency fund before paying down debt further. It is helpful to not find yourself deeper in the hole if something should occur.
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I’d also sell the car: In SF you’ve got the ZipCar option should you need a car for a period of time on a particular day. You’re walkable as well. I’m in San Jose and have been sharing one car with my husband for nearly two years now. (Had a car stolen and just never replaced it.) SF is easier than San Jose to get around without a car.
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most everyone else has already said it, but I’ll reiterate.
I have 5 friends who live in the SF bay area, all young professionals in mid twenties. None of them own cars. it doesn’t seem to be necessary there at all. I think the folks who are nervous about selling it have never lived in a place like that. Unfortunately, there are too few such places in the USA.
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J.D., you’re a professed fan of Elizabeth Warren’s balanced money formula, so I’m surprised by your answer! Ms. Warren would point out that having 100% of Martina’s income going to needs is WAY out of balance. Needs should ideally be under 50% to make it easier to weather a job loss and to leave room for savings and even wants. Just selling the car isn’t going to accomplish that.
Here’s the thing: Martina says she loves her *apartment*, but then she lists three or four things that she loves about her *neighborhood*. Leaving her apartment doesn’t necessarily mean leaving her neighborhood. There must be a cheaper studio apartment or a roommate situation nearby that she could move to.
I think the answer here is that she should try to get a better-paying job, move to cheaper housing in the neighborhood, *and* sell the car. If it turns out all that was overkill and she has more money than she knows what to do with, I doubt she’ll have regrets.
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It wouldn’t hurt to look around for a cheaper apartment with similar advantages. It’s even possible there are options in her current neighborhood. If the apartment, or its advantages are that important, then certainly make keeping it the highest priority. You can get another car, you can’t always find another great apartment.
I think I would be inclined to sell it, put some of what you get into an emergency fund, and the remainder towards your interest bearing debt. Though it may be polite to ask your generous parents if they mind you putting that money towards other debts, or would rather you pay them back since their reason for lending may have been just to get you into a vehicle.
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You’re in SF? One of the best places for public transit and the pedestrian lifestyle and the most unfriendly for cars in the country? Temperate weather 90% of the time? Sell the car.
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You know she’s not really asking for advice on how to live and what to spend the money on. She’s asking should she sell a car. It’s her choice whether to move or not. Yes, a roommate is a good idea, if it’s possible, but to say that she shouldn’t keep the apartment or that she must find a roommate is looking at her situation under the lense of pure fiscal number crunching. Life is not about money.
Martina, you should sell the car. Paying off your (I’m assumeing here) credit card debt is a good use of what is leftover from the sale. I would also consider using some as an emergency fund. No debt is great unless you make the last payment and break your leg the next day. I’d explore several options for increasing your income and reducing your expenses.
I have to add this disclaimer: I’m not in your situation or in a part of the country with good public transportation. Also, I really enjoy having a car as I feel I have more freedom. I would have a very hard time trying to sell my car if I was in your situation. Still as painfull as it might be, sell the car. It’s easy to get another one later. Good luck!
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I’m not sure what subject you teach, but I have a lot of friends that teach classes online from collegees outside of their state. It might be something to consider for some extra money (and keep up on your teaching skills).
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In my opinion:
1. sell the car. its not about how much you will be getting for it, but about how much the additional cost of keeping it will affect you in your current situation. plus once things go back to normal, if you choose, buy another one.
2. look for a new apartment, and if you can not find one that you like for a lower price, then keep your existing place.
3. look for a new job. like mentioned earlier, anything that will bring you extra income its ok.
4. dont add any more debt, and dont worry to much about trying to pay it off faster. At least not right now. you can get back to this task once you feel more financially secure.
whatever you decide, good luck
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#36 That is one option i have also thought of exploring. Online classes.. and you can do it from home.
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Selling the car would probably get rid of car payments and car insurance and eventually paying for new tags. I think this is a great way to go. She may want to consider applying to teach courses for colleges online in other states.
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I’m so sorry to hear about Martina’s situation. I think I’d try to get a distance learning gig like everyone else is saying too. I would look in a state with a smaller government. You may find a job in a Texas or South Dakota school where politicians aren’t doing as much to ruin your prospects. Especially promising now, I would think, would be schools that cater to vets due to a new GI Bill that is a bigger better deal.
I would keep the car if mass transit wasn’t going to work, and dump it if possible. I don’t want any self-inflicted crisis, and want to whoop up on the other crisis as soon as possible.
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Yeah, sell the car. From what it sounds like, you’ll save somewhere around $300-400 a month. That’s a pretty hefty chunk of money. Especially if your current job is so close and the transit is so close. It would be slightly silly to try and move as there is a good chance that she might end up moving farther from her job and actually need a car then.
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1.Find a roomate if you can or look for another cheaper apartment in the same neighborhood. Even if you are a couple blocks further away, lessening the financial burden would be worth it (even $50 helps). 55% of your money is way too much to pay when you can find other options.
2.STOP getting parking tickets.
3.If you are hesitant about selling the car #5′s suggesting sounds like a good way to buy you some time.
4. Look for second job closer to home. Work for another college (30miles away doesn’t seem worth it anymore when your classes are getting cut-but your call), become a private tutor, substitute at a high school.
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Sell the car! I live in Chicago and share 1.5 cars with my husband (our 20-year-old Miata counts for only half a car – it’s garaged all winter long). I have never driven a car to work in 20 years of adult life in the Snow Belt, and I’ve done just fine and saved loads of money. Public transit is way cheaper than car ownership.
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In San Francisco, she may not be able to find another apartment that costs much lower within a very large radius. She may get lucky; if so, she’s just as likely to get lucky downtown as anywhere else. Start looking for a new apartment at a lower rate in your neighborhood, even if it means dwelling in a slightly less nice building.
Why is everyone losing their minds at the idea of not having a car? Has anyone ever been to SF? It is perfectly possibly to live car-free in many areas of the country.
#4, no, this blog isn’t anti-car, in fact it’s pretty pro-car. It’s all about how to get more value out of your car. There’s virtually no discussion of not having one. In many ways this blog is for suburbanites.
#8, Zipcar…? Why would Zipcar not work for this?
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I would sell the car. I just sold my own car last month, after owning it only one year. I knew I needed to do it, too, a couple of months before I could bring myself to do it. But now it’s done and it’s totally worth it. I told myself that if it didn’t work out, I was free to buy another one–but things are working out. It’s hard to take that first step to sell it, but it gets easier.
I also second the suggestions of finding a roommate and taking on another part time job.
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Definantly sell the car. The best part about a depricating asset is that you sell it and later can buy it back for less money, so if she does need a car latter she could purchase the same car again and have made some cash off the transaction (purchase price difference, interest on emergency fund increase from car sale) and saved additional cash (from insurance and interest on loans).
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DO NOT SELL the car. I was just in a position looking for a better paying job. I needed that car SO badly to go to interview — to network — etc. etc. I doubled my salary. But I can tell you that wouldn’t have happened without the car — I had to drive on a moments notice out of state (over the boarder – not as far as it sounds) for a final interview. KEEP THE CAR — get a roomate or move somewhere you can. GOOD LUCK!!!!!!!!!!!!
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Sell the car and buy a used one (beater) when the need arises. New cars are just a huge waste. Good luck getting $10k for a Fit.
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I vote for selling the car. If you truly need a car, later on, use Consumer Reports to find a good used car, cheaper. Or a scooter.
And I agree that you might at least try to see if there is cheaper housing in your neighborhood, or a possible roommate you can live with. Tell yourself that you’ll just look, that you absolutely won’t move or accept a roommate unless you find a solution that you can love. It’s amazing how allowing yourself to “just look” can get you over the hump.
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