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Hello all. So recently life threw a curve ball at myself and my fiance. She just lost her job and has possibly been denied unemployment insurance by her ex-employer. Back in August of last year we purchase a new civic. Payed $5000 down and today we owe about $14500. This is the second car we have. The other is a 2001 prism. I'm worried that selling the new car may cripple myself on getting back and forth to my work if the prism ever breaks down. We have a tiny bit of cash saved up, roughly $2000 for rainy days. But I know this will not last long. I can afford rent and some of the bills on my own, however, the car loan payment will possibly be too much to handle. My fiance has picked up housecleaning on the side for cash, but it only adds around $300 a month. So, do I just continue on my path of oblivion in hopes she will land a job soon, and I mean SOON, or cut my losses and sell the civic? Looking at it from a bills perspective, its wise to cut out as much luxery as possible, but I don't know if I will be setting myself up for future problems I.e. old car breaking down. So thoughts? Please.
Its impossible to say really...you've left out a ton of info..
We don't know your spending habits or how much income you make for starters...(or your total monthly expenses)
If your fiance and you were both working (w/o kids), seems very low to only have 2K in the bank...where are your guys savings???
just on the SURFACE it sounds like you shouldn't have spent 20 grand on a new car...seems like you went in way over your head, but provide some more info and we should be able to give you a better answer.
If your fiance quit (or was discharged under self-inflicted circumstances), she would not be entitled to Unemployment benefits ... and the company might deny her a severance package. Otherwise, the determination of UE benefits is made by the state, not the ex-employer. In either case, make a realistic assessment of her probability of coming up with a replacement job in the near future.
Selling the Civic may be a worthwhile option, but, check-out your 'payoff $number' -- You may not net enough to make what you will likely get out of a 'distress sale' worthwhile. Perhaps the dealer would give you a good allowance on an older vehicle(?) That would still give you transportation, and a very nominal car payment.
As stressful as your situation seems at the moment, stop and take a breath ... 'Panic mode' decisions are rarely good choices. You will neither starve or have your car foreclosed upon in the next 2-weeks; and will need at least that much time to calm down and think-out a solid plan for the near future. Make a list of all the options you can think of for stretching-out & supplementing your limited resources -- work through the pro's/con's and risk analysis of each. At the same time develop a sensible networking plan for finding a new job ... or at least offsetting a significant part of your expenses. You are probably not in the mood for cliches, but, the truth is: 'This too will pass - and you will recover.'
I say sell. Problem is, you likely to lose a lot. Prism is a re-badged Suzuki and has very good reputation for reliability. Year is not that bad too.
Otherwise, like others mentioned - there is so much variables. But one can stick his pride up where it belongs and go real low on life expenses. I know, we've been there.
To me it would depend on how likely she is to find a job in the next month or so. Can you guys realistically evaluate her chances? I wouldn't sell if she can get a new job within 2 months, simply because it will be a big loss of money. Also, does she need a car to get to interviews while you are at work? Can you live with one car?
We have a 2001 Prizm - love that car! 160K and it runs great (knock on wood). We haven't spent that much on it over the years, although we are pretty good with regular maintenance etc. I think the most expensive fix on it was AC about 5 years back for $400 or so.
And I know it's irrelevant, but Prizm is not Suzuki, it was manufactured through GM partnership with Toyota. The engine is Toyota's as well as some other parts.
Hey thanks everyone for your input. I make around $27k a year. I know, its pretty pathetic, but trying to move up in a city municipality is become...problematic. The civic was a first new car or rather, a first new anything we've had. We had a lot more in savings but due to paying the down payment of $5000 on my civic, $ 2000 is what we had left. Before my fiances termination, her hours were reduced and had to take a pay cut. And living with one car is possible, we did it before the civic, but it wasn't easy. Taking public transportation was a bummer, but its what I had. And yes, the prism is a great car.
If your fiance quit (or was discharged under self-inflicted circumstances), she would not be entitled to Unemployment benefits ... and the company might deny her a severance package. Otherwise, the determination of UE benefits is made by the state, not the ex-employer. In either case, make a realistic assessment of her probability of coming up with a replacement job in the near future.
Selling the Civic may be a worthwhile option, but, check-out your 'payoff $number' -- You may not net enough to make what you will likely get out of a 'distress sale' worthwhile. Perhaps the dealer would give you a good allowance on an older vehicle(?) That would still give you transportation, and a very nominal car payment.
As stressful as your situation seems at the moment, stop and take a breath ... 'Panic mode' decisions are rarely good choices. You will neither starve or have your car foreclosed upon in the next 2-weeks; and will need at least that much time to calm down and think-out a solid plan for the near future. Make a list of all the options you can think of for stretching-out & supplementing your limited resources -- work through the pro's/con's and risk analysis of each. At the same time develop a sensible networking plan for finding a new job ... or at least offsetting a significant part of your expenses. You are probably not in the mood for cliches, but, the truth is: 'This too will pass - and you will recover.'
Fortunately I'm not in the panic stage any longer. I graduated into the depressed state. I do know though, that my car is worth more than what I owe due to my large down payment.
Jared,
Have your girl friend fight a denial of unemployment. They cut her pay and hours
before they laid her off? Sounds like they had that planned.
If she is denied, tell her to go to the Unemployment place where she applied and tell
them she wants to appeal this. They will handle it from there.
Don't sell the car.
What happens when she gets a job offer and needs a car?
Have her look and tell everyone you know she is looking for a job.
She will get one, mabey something just to hold her over til she gets a better one.
Good Luck to you, hope things work out.
Do you live in a city with reliable public transportation or decent streets to cycle to and from work? I ask because if you decide to sell the Civic, and she finds a job, that might be a bit of a problem. However, you could just buy a cheaper car soon after she finds a job if using public transportation is not possible.
What other expenses do you have? Can you turn off cable, change to a prepaid cell phone plan, or sell possessions that are a luxury? While you don't make much, with the right changes, you both could easily live with your wages until she finds a full time job.
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