I need some advice. My wife and I are in the process of paying off our credit card debt. We make $60,000 take home and have $37,000 in credit card debt all together that we have brought with us from college. We have just begun putting a total of $1,500 a month into paying all this off, which should be done in a little over 26 months with no hiccups. This leads into my question about cars.
My wife's lease will be up next summer and will need to get her something new. I, on the other hand, am making payments on my 2003 Infiniti G35. It has 29,000 miles on it and I still owe $24,200. My payment is $511 a month. Here is where you come in. I would like to trade it in for a cheaper car, say a used mazda 3 for like $11,000. I will have like $6,000 in negative equity rolled in since I could trade it for around $18,000, but the payments would be significantly cheaper around $340 a month. It would also get 27-30 mpg while I am averaging 19mpg. I could use all the extra money and apply that to the credit card debt. We need two vehicles so my question is, what would you guys do?
I would seriously ask you why when you are making $30,000 a year, you felt the need for a $30,000 car which you can't afford? I would sell the car and buy a used car in cash, so you can stop buying things on credit. If you are $37,000 in debt and only make $60,000 a year combined, the first thing you need to do is get out from under your debt/car payments which are costing you and your wife a whopping $2500+ a month!
If you can't afford a nice car in cash now, then you can't afford a nice car. Buy a cheap car and save up. Stop leasing.
That's my 2 cents.