I just got a new job. It’s technically a 20% salary decrease, but with the fringe benefits and benefits to my mental health, it feels like a promotion. I decided I can afford the cut and it’s worth it.
One of the benefits is a car, which I am free to use for personal driving as well as for work. Maintenance, gas and insurance are all covered.
Here’s the dilemma: I already have two cars. One is a commuter car, newer with lots of amenities and a reasonable monthly payment. I currently owe about $5,000 more than it’s worth because I paid for an extended warranty and had planned on putting a lot of miles on it and keeping it for years. I’ve only had it for one year.
My other vehicle is an older Jeep. It’s still functional but not suitable for commuting. It’s paid for and probably worth about $12,000 to $15,000. It is not practical, but I have a strong attachment to it. It’s a Jeep thing.
I don’t need or have room for all three vehicles. What do I sell? Just the grocery-getter or both? Do I trade both in for a newer fun Jeep? I’m hesitant to do that because the markup on those is Exorbitant!
-A. in the Midwest
Sell the Jeep. Surely you weren’t planning to bronze it and keep it in your garage for eternity, right?
There’s no easy time to part with something you’re emotionally attached to. But when that thing is a car and you have two other cars and dealerships are paying top dollar for trade-insit’s as close to a perfect time as you’re going to get. Focus on all the happy memories you can make with an extra $15,000 in your pocket.
That’s the easy part. Now for the trickier question, which is what to do with those other two vehicles you’ll have left in the driveway.
What I wouldn’t do is trade in your newish vehicle and the old Jeep for a fancy new Jeep. As you point out, you’d be paying top dollar. I’d much rather see you take the money you’ll get at trade-in and put…