Past Due: Radio 158 – Selling a Car at a Loss to Dump Debt
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Does it make sense to sell a car at a loss if you’re trying to get out of debt?
Sue, a financial coach in Raleigh, sought out my perspective on a family she’s currently working with. They’re working on a substantial debt-elimination plan, but keep running into a roadblock: the family’s gas-hog SUV with big-time monthly payments (to the tune of $800).
On today’s show, we addressed three pressure points facing this family:
1) How can they sell their car for less than what is owed? (And, should gas economy be a deciding factor?)
2) What are the financial implications? I run the numbers on their situation to paint a clear, objective picture.
3) Should they use a company like CarMax to speed up the process of dumping the vehicle? We must understand how dealerships value vehicles first.
Kids & Money Contest: I’m looking for stories of parents teaching their kids about managing money and understanding how money works. If you have a great story (humorous, big life lesson, etc) of what to do – even what not to do – please send it to firstname.lastname@example.org by Sunday, June 19th with “Kids Money Content” in the subject line. Entries will be gathered for the next few weeks and the winner will receive Junior’s Adventures, the boxed set of money lessons for children by Dave Ramsey, and a copy of my book, Get Naked: Stripping Down to Money & Marriage.
If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!
Episode 135 – Do Overs: Buying A Car – I dove into the details of my last car purchase and how I made a mistake that cost me nearly $30,000.
Kelley Blue Book – This is one of the most well-known vehicle valuation services out there; pay attention to the differences between Private Party and Retail/Trade-In values for your used vehicles.