Hi everyone, I just joined the site in hopes of increasing my financial IQ. Haven't been much of a saver but would really like to start growing my money.

So, mistake number 1, I bought a BMW last year, and now I lost my job so I can't afford to make payments on it. Right now it's $350 per month. I still have $14,000 left to pay on it.

According to KBB my car is worth about $20,000 if I sell it to a dealer, and about $22,000 if I sell it privately.

I would like to know what would be more cost effective?...Trade my car in now, for a crappy car or continue making monthly payments? Now, I would only get a $6,000 trade in value from the dealership, and selling it privately would not be possible unless the buyer can supply the funds to pay off the lein holder so I can get the title (it can get messy).

I might be starting a low paying job soon, and honestly just want to start saving as much as I can. I don't want to have to keep making payments on this car every month but also, I don't want to drive around in a car that might break down (which would end up costing me more to repair). But if I keep the BMW for another year, then I might be able to get a better / more reliable car for the trade...

I don't know what to do!! Advice? Oh yeah, I also forgot to mention that I have $10,000 in savings, but that's ALL the money I have

What do you need a car for? Errands, job interviews, your potential new job? If you lived someplace with good public transportation I'd say just get rid of the car and get something new when you know what your job situation is going to be.

What is the 10k savings in relation to your minimum monthly expenses? As in 10K should last you how long?

Do you have any job leads?

What industry do you work in?

You are not the first person to ever sell a car private party when you owe money on it. It can be done, you just need to figure out how (in your state). Private party sale always gets you the most money for your car, it just takes more effort. Right now you have a lot more time than money.

You are not going to get a good price from a dealer. Even if you think you are getting a good trade in price, the dealer just makes it up on the price of the replacement car. And forget about selling to a dealer without buying; they are in the business of selling cars, not buying them.

Your car is worth between $20 and $22k.
You owe $14K.
Therefore you have between $6 and $8k in equity.
For $8,000, where I live you can buy a 2002 or 2004 Honda Civic. I bet you won't pay more than $3000 in maintenance over the course of the next 4 years.

If you sell your car, buy a civic (or similar) and save $65 a month, you will have the money for the unlikely repairs and no car payment.

The BMW is expensive because it is fancy. You don't need a BMW to be reliable. Even a 2-3 year old, Honda Civic for $10,000 would put you in a better place.

[I don't care about the Civic. Whatever reliable, fuel efficient, non fancy car you want could fill in.]