A single guy in a pickle and looking for suggestions here…
I’ve got an '04 Blazer and an '08 Rio, both of which are financed. I had the truck for a couple years, then gas prices spiked and I was driving ALOT (5k mi/mo.) for work, so I picked up the Kia for a commuter car.
Now, i’m driving ALOT LESS for work and driving very little in general, but here I am with two vehicles and two loans.
I’ve got like a year left to pay off the Blazer, and its definitely worth more than I owe, but on the other hand, with the Rio I am definitely upside down on it, and a few years to go.
I really don’t have the cash to pay off either vehicle out-right, but I really don’t wanna hang on to two vehicles (for both logistic and financial reasons it doesn’t make sense.)
Any thoughts/suggestions/feedback on what to do?
My impression is your are reacting too quickly to your driving amount and fuel costs. I would have stuck it out a LONG time in that Blazer before I took another loan simply to save on gas. since your rational for a second vehicle was so flawed I am not suprised you have trouble now.
It is the same old formula, garbage in, garbage out
Besides keeping both of them, the only solution that makes money sense is to sell the Blazer and pay off its loan.
I’d say sell whichever one is worth more, so probably sell the Blazer.
EDIT: Also, if you really don’t drive that much and you’d really like to get out of this quick, another option is to sell both and just pick up a really cheap used car.
I would sell the Blazer while gas prices are still relatively low. Then I would refinance both loans into a single lower interest loan. Stick a “for sale” sign in the window of the Blazer and contact your local banks and credit unions to inquire about a debt consolidation line of credit. You will probably still be under water, but you will be able to afford the payments and you will see light at the end of the tunnel.
I would sell the Blazer if it is worth more than the remaining loan balance. Any proceeds left after paying off the Blazer loan, put toward the Kia loan.
If you keep the Kia long enough, it doesn’t matter if you are upside down on it.
I doubt the OP is looking for a sermon on past decisions.
You will loose money, but at this point, I feel like the others, you should sell Blazer and get out of the debt cycle. You’ll have the newest car with the greatest debt, but the cheapest to run. I agree it was not a good idea to buy a new car while still owing on another. Many as you have found out, do the math a little better ahead of time. If you start to get ahead, fight the urge to change cars again.
If you’re seeking an answer that does not include “sell the Blazer”, then you’re not looking at the problem realistically.
Sell the Blazer.