Week 2, Question 1
Thanks guys for helping us sort out Matt’s credit card. It's great to get rid of a chunk of debt, although a bit scary to have our emergency fund down to just $700.
Now I know we shouldn't be thinking about spending any more money right now, but we really need to do something about our car.
It's not flash (most of the car costs in our budget are for petrol) just a hatchback, but it’s getting too small for us now. With just two doors it's a real pain (in my back!) to get Caleb and his car seat in and out. And once the buggy and change bag etc. are in the hatch there's not much room for anything else.
Matt reckons we could get about 4 grand for our car (maybe more thru TM Motors!), so that would leave us needing around $5,000 to trade up to something bigger but not over the top - like a 1998 station wagon.
We could find a way to save up the extra money we need, but seeing as we're going to review our mortgage soon anyway, why not just put it on the house? We've got plenty of equity, so another five grand wouldn't hurt, surely?
Your thoughts?
posted by sortme @ 5:06 PM
3 comments
3 Comments:
Steph, remember you are trying to get out of debt, not add more to it, i would either put up with what you have for now, and save up enough cash to buy a car outright, or sell what you have and use that money and that money only to get something bigger, for $4000-$5000 you can get something decent, you just have to do a lot of looking around. bargains are out there.
If you think you will get $4K for the old hatchback you are a bit misguided. Did you know that car yards that advertise minimun $4K trade-in only add that $4K to the cost of the car you are buying? Instead of putting yourself in more debt, just keep the car & handle the inconvenience. I still have a 2 door hatch with a kid & it's not that bad. Buy yourself a $20 Stroller from the Warehouse & don't take so much stuff with you. No point getting yourself further in the debt over a little bother like that. If the car was dead I could understand it but it isn't so why spend more money?
You can buy a 1994 subaru station wagon for under $5000. You should have no need for anything for more expensive. Ever. You do not need to spend more than $5k on a vehicle in NZ. Anything more is just for prestige.
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