How deep are you in debts? Are you willing to sell your beloved car to get debt free at the earliest? You don’t have to live without one; you can always go for something cheaper or a used car. Nevertheless, here are a few questions you will have to ask yourself before deciding to sell your car:
What is the kind of amount that you spend on your car every month?
It’s not just the fuel cost; you will also have to take into account the car insurance, auto maintenance (scheduled and unscheduled), parking fees that you have to pay, and so on. This might add up to a small fortune, depending on the place where you live and the distance that you drive each day.
Is this amount in any way making it difficult for you to pay back your debts? If yes, it would be a good decision to sell or trade in your car. Would selling your car fix your debt problem? This will depend on your locale, your habits, and your car.
Do you owe money on your car?
It is a different situation if you have paid back the loan that you may have taken to buy your car. But if you have a lot to pay still, you may owe more than what you can get for your car. Do some research to find out the current worth of your car? Find out how much you can get if you sell your car. Would it be sufficient to pay back your loan? Or would you have to borrow more money to cover the remaining balance? If it is not going to help it is better to keep your car and continue making your payments. However, you can still keep tabs and consider selling your car, when you can come close to breaking even.
Is this the only car in your family?
If this is not the only car that is in your family, you can consider car-pooling with your spouse. In case this is an option, you can think of selling your car for cash. However, do weigh the risks of selling your car with the rewards of paying back your debts. In case your car is your only mode of transportation to work, it may not be a good idea to sell it off.
Do you badly need a car?
If the area that you live in has great public transportation system, you can probably live without a car. In case there are times when you badly miss having a car, you can always rent one for a while. There are many rental services that provide cars by the hour or day for very reasonable prices. These prices generally include gas, insurance, and maintenance, making it totally worth hiring a car.
Would you be fine with a cheaper or a smaller car?
If you will be left with some money after paying down your debts, you can always think of getting a smaller, less-expensive car. However, this may not be such a good idea if you will have to borrow money to buy one.
Selling your car is always better than driving it if you can’t really afford it. Not only you will get a good price for your car, you will also get the cash instantly.