Car Buyer's Remorse

[Paige]

So we bought a mid sized SUV and got a loan through the dealer (something we haven't done in 20 years). Afterward, reality hit us that we still haven't sold one of our old cars (3000.00 worth) and we didn't put anything down. Add to that the taxes and then the interest and we are paying much more than we planned for. We can handle the loan, but we want to retire in a few years so buying a car was a bad idea (hindsight is 20-20). We could have bought a less expensive car and the money could go to a Roth IRA, an emergency fund, a vacations, or savings for a cheaper car. (and we are "upside down")

I am trying to figure out our next step. Should I just drive it from dealer to dealer and see if someone wants to buy it? Should we bring both cars--the new one and the old one and then bargain? Should I try to sell it on Craigslist? Should I keep it for a few months and pay several payments and whatever else I can drum up and then try to sell it after we are not "upside down" anymore? I would love your advice. Turns out my husband hates, hates, hates, dealing with cars and so it will fall on me to take care of this issue. After misunderstandings, regret, and beating ourselves up, we are ready to fix our mistake. I would love some advice. Thanks.

[Williamsmith]

IMO, what's done is done. No looking back permitted. So depending how upside down or under water you are, you could find a dealer willing to sell you a cheaper car and would fudge some of the numbers on the trade in to make it easier to find a lender. Lenders have limits of say 110% of the Kelly book value of the used purchased car, so the numbers have to jive. And the under water amount is going to be put on top of the price of the car. You may have to have a downpayment to facilitate the loan. Trouble is your interest rate is likely to go up over the new car you purchased.

if you can afford the monthly payments and an extra payment here or there....drive it until your book value reaches trade in value and then get rid of it. Or alternately, keep it and drive it for as long as you can and stay out of dealers lots. There is a reason they put all those cars out for you to see.

i understand exactly where you are coming from. I have purchased and owned 18 cars in my lifetime. Yeah, I drank all the cool aid but there is hope. I have a newer truck that is completely paid for and a relatively new car that i could pay off if I so chose right now. I have no plans on buying any more until they have to be euthanized.

Work equals money. You could get a part time job and pay down the loan. It isn't the car you need to get rid of....it's the loan that bothers you.

[Tammy]

Sell the 3000 car and put all the money toward the loan. Think of the 3000 as your down payment. Then keep paying more than your payment. Double it if you can. It will be paid in no time and you will have a reliable car that will last many years.

Selling it now would be your big mistake. Paying it off fast is how you make this a win.

[Gardnr]

Sell the 3000 car and put all the money toward the loan. Think of the 3000 as your down payment. Then keep paying more than your payment. Double it if you can. It will be paid in no time and you will have a reliable car that will last many years.

Selling it now would be your big mistake. Paying it off fast is how you make this a win.

I completely agree. pay that sucker off and drive it till it dies all the while taking very good care of it through good maintanance. Go back to the reason you bought it and celebrate your ability to have this new car for the purpose you intended.

[Paige]

O.K. so I am thinking of putting both pieces of advice to work. WS, thank you for reminding me "what's done is done." The good news is that I have two credit unions and a good credit score. I did talk to one CU and she said we can refinance the car for free at the same value (1.99 if it is 4 years or less or 2.49). I did finance at the car dealership the first time. I do hate the loan, Tammy, good point, but the car feels too big for my short frame, too. I wouldn't mind getting a smaller crossover SUV instead of this medium sized one. Also, we stupidly financed for six years so the total of the car is huge after that many years. I just keep thinking we don't need so much car and the money would be better spent to get ready for retirement.

So here could be a plan: Option 1:Sell the old car for $3000.00 dollars now. Save that money. Make payments until March or April when people want to go on trips and then try to sell it myself. It is a hybrid and now gas prices are going down so people may not want it right now, anyway. So in the spring I try to sell it myself???? or I could trade it in. I hear that with trade-ins don't make as much as selling cars on my own, but since it is an expensive car, maybe I wouldn't be able to sell it easy on my own.
Option #2: Sell the other car, dig up a couple thousand more and have 5000 to put down and trade it in for a smaller, cheaper car. End up with a car I like, a smaller loan, and the guilt would be gone earlier.

[Paige]

Gardner, I like your thinking. Just saw this post after I posted again. I do think we need a cheaper car because we can't justify how much we are spending each month and total. Also, it is too big for me. Thanks for your help.

[Teacher Terry]

If you have the $ to make up the difference you could sell it to CArmax & just pay the amount you are underwater by. I have heard that they pay fair prices.

[Williamsmith]

If you do make a plan to ditch your car....you might open up a new thread and discuss what make and model makes sense for you. Or do it right here.

[SteveinMN]

For what it's worth, I'm in with Tammy and Gardnr. You are going to take a financial bath returning the new SUV because it is, in the dealer's eyes, no longer new. There are some dealerships (maybe even some brands) that give you a period of time during which you could return a vehicle, but you'd have to check with the dealership that sold you the car to get the particulars. It's a long shot.

So may I ask why this SUV is "too big"? Is it a spatial thing (you're just not sure where the corners of the vehicle are)? That problem can go away with more experience. Is it difficult to get into the truck or to reach the pedals? There are adaptive devices (steps, pedal extensions, etc.) which might address those issues.

[Paige]

It's too big for me because I am short. I was being vague about the kind of car and the price, btw, because I am embarrassed. I am on a a "Simple Living" sight. Ugh. Anyway, it is a great car, but not good for parking, zipping to the store, etc. and yes, if I drop something on the passenger floor when I am driving, I can't simply reach over when at a stop light, I literally have to park the car. On the other hand, my husband fits well in the car and he likes it, but regrets it...sort of ......lots of psychological car issues in the house at the moment.
One thing that you guys seem to agree on is that I should keep it for a while, sell the other car and make payments. I guess the other thing is that it seems like such a waste of money. We brought it over a thousand miles on a huge trip this summer, but reality hit us with the first payment. Oh...and it's a 2010, not new. I read a lot, like Mr. Money Moustache, Dave Ramsey, Clark Howard, and this is not helping us get closer to retirement. I could halve my payments with a smaller SUV and not a hybrid.

[razz]

It is a good car but a bad fit for you. Try it for a year and then reevaluate your feelings. Use the $3000 for the old car to reduce the payments when given the opportunity at your CU's refinancing. The late spring or summer generates a lot of interest in bigger SUV's for camping etc. so will be easier to sell then. Are you in snow country because a bigger SUV is better there?

[Float On]

Do sell the older car. Cars in the $3,000 range sell pretty quickly on Craigslist. I sold a 2000 Dodge Durango (12 mpg) for $2000 cash the first day I had it listed. I probably should of asked for $3,000 but the AC was shot along with the stereo and a few other issues. We've been looking for a good mpg used car in the $3000-$4000 range for one of the boys in college. The good ones go quick. Take lots of photos, be upfront and honest with any problems.

Pay down as quickly as you can the newer car. You make like it more the less you owe on it.

[Teacher Terry]

If you post this on Mr MM everyone will tell you to sell & take the bath but actually I would not. I would keep it & drive it for the next 15 years.

[iris lilies]

Op I think you have to keep the car long enough to get out of your car funk and to be absolutely certain that the next one you buy suits you'll or else you could be out of the frying pan and into the fire.

use this time to test drive models so that you will choose wisely next time.

the reality is that you dont like the car and it does fit your husband. You both will need to sign off on the next purchase, wholeheartedly.

[freshstart]

If you post this on Mr MM everyone will tell you to sell & take the bath but actually I would not. I would keep it & drive it for the next 15 years.

I would, too. I'm confused the new SUV is a 2010 and you have payments on that for 6 yrs?

Are you a two car family? Could DH take the SUV to work and you take whatever other car you have? Then you wouldn't have to drive it as much.

I am very short. I had a Forester, for me that was a HUGE car, I'd always had small cars. I was driving all day and I would walk blocks and blocks rather then try to parallel park. After a while I realized because the seat rose up, the steering wheel came down, I actually could see better than in any car I'd ever had. My mother has a Civic, should be up my alley, but the seat is on the floor, it can't be raised and I cannot see over the back seat head rests, I hate that car. I would give it some time before giving up on it for that reason.

[Williamsmith]

Upon further thought...iris lilies has good perspective. Whatever you do make sure the next car is reasonable and exactly what you want. Stay away from impulses.

And if you want specific advise, I'm afraid you should include more specific information. Make, model, mileage now and at purchase, warranty, gap insurance coverage, price, interest rate how much under water, monthly payment....the whole ball of wax. It would definitely elicit more specific responses. For example, if your 2010 SUV that you are paying six years on has over 70,000 miles and no extended warranty or gap insurance......then get rid of the thing.

I recently read advice that stated you should never buy a car that represents more than one tenth of ones gross annual income. Now that is restrictive.

[Paige]

Thanks, everyone. I will take your advice to heart!