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Wednesday, June 18, 2008

Should We Sell My Car?

I am about half way done with The Total Money Makeover by Dave Ramsey and the first step my husband and I need to take is to create a budget together, one that we both agree on. The second step we are supposed to take is saving a mini emergency fund of $1,000, and then after that we will start our debt payoff snowball. Dave suggests doing anything and everything we can (legally anyway) to get a jump start on our mini emergency fund and debt snowball such as sell things, work extra hours or odd jobs, etc. The first thing that came to mind was my car.

My car is paid off and I don't really need it since my husband works from home four days a week and I could just take his car if need be. With gas prices the way they are I have been trying not to drive anywhere more than once a week anyway, so it wouldn't really affect us to go down to the one car. My car is a gas guzzling SUV with 180K miles on it, and I'm not sure we would be able to sell it very quickly since most people are currently in to being green, but I think it is worth a try. We could probably get around $3,000 for it and that would completely fund our mini emergency fund as well as get our debt snowball rolling along nicely. My husband was a bit surprised when I mentioned it to him this morning, I guess I kind of threw it at him from out of nowhere. So, what would you do if you were me? Would you sell the car?

3 comments:

ALNV said...

There are both pros and cons to selling your car. It's paid off and good for an emergency when your husband's car isn't available. But at the same time it is sitting there unused most of the time while you pay insurance on it, which would be extra monthly savings. I'd say write out the pros and cons and then go over them one by one together to get your decision.

Dannalie said...

Probably. My husband sells cars and they can hardly give away SUV's right now. Their used car side of the dealership is loaded with them.

Good luck with the debt snowball...check out my post today. My snowball has officially STOPPED! :)

Tracy said...

Thanks for the input!

dannalie: Wow, that is too bad.