Sell my 2002 Lincoln LS to reduce debt?
I'm about to sell my 2002 Lincoln LS SE for $12,515 although I owe $17,017.71 on it to eliminate monthly payments of $339.32. I'll have to pay the $5000 difference out of our home equity account at 8.25%, or $34.38 per month, unamortized. My wife and I can share, with some difficulty, a 2002 Chevy Malibu and an unreliable 1983 Cadillac Seville, both paid for. I was emotionally tied to keeping a lovely car, but now I have to take hard look at whether paying that $5000 up front is worth the elimination of $339.31 monthly for 46 more months or $16,988.43. Should a sell my Lincoln LS that depreciated so rapidly?
yes i would sell that or if you have enough in your HELOC account to roll that loan into that for about 100 a month. in 1 year that car maybe selling at 9k and you owe 15500 there goes another 1500 bucks. cars are a pain for that, i was dumb 7 years ago and had to buy a new mustang GT the value dropped and drooped, spent 27k and now worth 10k. still have it but pd off and have a 95 wind-star for the winter. but no car payment and love it.
best of luck on whatever the direction you go with.
February 16th, 2009 at 4:18 am
That would be the sensible thing to do to reduce your debt. You should read the book "Automatic Millionaire". The author speaks of situations such as yours.
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February 16th, 2009 at 5:03 am
Yes.. if you can't afford it, you'll be better off the sell it and either pay it off from the home equity line or take out a personal loan.
Dave Ramsey, a financial counselour, has a lot to say about how much car you should have in relation to your income. He also talks about being debt free, so he never supports having a large car payment.
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February 16th, 2009 at 5:27 am
In as much as a lincoln is a ford I am surprise you are still driving it. Most fords are on the sid eof the road opr in the dealers machanics shop.
I am also supprised you owe that much. They saw you coming. I am very surprise you can even sell it much less 12,515.00 I would dump the dinosaur and bite the bullet. It's sad but my daughter or one of them is in the same fix. She refinanced and got taken to the cleaners so now she may have ot sell it.
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February 16th, 2009 at 5:41 am
yes i would sell that or if you have enough in your HELOC account to roll that loan into that for about 100 a month. in 1 year that car maybe selling at 9k and you owe 15500 there goes another 1500 bucks. cars are a pain for that, i was dumb 7 years ago and had to buy a new mustang GT the value dropped and drooped, spent 27k and now worth 10k. still have it but pd off and have a 95 wind-star for the winter. but no car payment and love it.
best of luck on whatever the direction you go with.
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February 16th, 2009 at 6:27 am
The LS is a lovely car, I too own a 2002. If you can't afford it, then yes you should take the necessary steps to elimniate your debt.
To the person downing the fact the LS is a Ford Product is very ignorant. Every Make has problems. I have problems with Toyota and Honda. My sister owns an Acura and those have transmission problems.
But anyway, you should sell the LS if you can afford it and having to have it repossed later and damaging your credit rating.
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