WWMMD: Vehicle edition

[hamster]

I'm a little torn on this, so I'm looking for some words of wisdom and confirmation on what the right decision is.

A few months ago we bought a Jeep Liberty. It's a third vehicle for us. We also own a truck and a 2007 Ford Focus (which is my daily vehicle). This is obviously a little excessive, so we've been talking about selling the car but I'm having trouble justifying selling something with the best gas mileage.

We did the math, and the amount we save in gas is about equal to the cost of insurance. Maintenance is pretty minimal on both the jeep and the car, although both are due for tires this year. We can easily afford all three vehicles. Both the car and the truck are paid off, and the jeep loan is only about $150/month.

If we sell it, we can pay off a personal loan which would give us an extra $700 a month. However, this loan will be gone in October at the latest.

So, WWMMD?

And selling the jeep or truck isn't an option, so don't even bother suggesting it.

[aurora]

Is there a reason you wanted 3 cars in the first place? Or did you just want the jeep (since you say selling it isn't an option)? Since you say you can easily afford all 3, my answer depends on why you have the 3 vehicles in the first place.

[Deleted]

This is an odd question considering you aren't willing to get rid of the jeep, which would be the logical thing to do if you want to eliminate a vehicle.

[hamster]

Jan 2, 2013 13:04:16 GMT -5 aurora said:

Is there a reason you wanted 3 cars in the first place? Or did you just want the jeep (since you say selling it isn't an option)? Since you say you can easily afford all 3, my answer depends on why you have the 3 vehicles in the first place.

We were looking for a vehicle that was better for me to drive over the pass, go on gravel roads, etc. Because of our work schedules, I often have to meet H camping a couple hours away and neither of us were comfortable with my car's capabilities in that situation. It's all around a better fit for our lifestyle.

[winnied]

Jan 2, 2013 13:06:49 GMT -5 papiercherri said:

This is an odd question considering you aren't willing to get rid of the jeep, which would be the logical thing to do if you want to eliminate a vehicle.

Agreed.

[aurora]

Jan 2, 2013 13:08:36 GMT -5 hamster said:

Jan 2, 2013 13:04:16 GMT -5 aurora said:

Is there a reason you wanted 3 cars in the first place? Or did you just want the jeep (since you say selling it isn't an option)? Since you say you can easily afford all 3, my answer depends on why you have the 3 vehicles in the first place.

We were looking for a vehicle that was better for me to drive over the pass, go on gravel roads, etc. Because of our work schedules, I often have to meet H camping a couple hours away and neither of us were comfortable with my car's capabilities in that situation. It's all around a better fit for our lifestyle.

Thanks for the update. It sounds like you're not really interested in having 3 cars, then. I had unfortunately missed in your OP that the Focus was paid off and the Jeep still has a loan, so that means there isn't as easy a financial argument either way. I don't know how old the jeep is, but is it safe to assume the loan is more than you could get for selling the car? I guess either way if you're unwilling to sell the jeep then selling the car (either to pay off the personal loan or to pay off part of the jeep loan) is the most financially sound decision. Not environmentally sound, of course, but this is a MM board.

[Deleted]

I would sell the Focus. Since the amount you save in gas is about equal to the cost of insurance, there is no point in keeping it even though it is fuel efficient. I like that you plan to pay off a personal loan to free up money.

[hamster]

Jan 2, 2013 18:19:38 GMT -5 aurora said:

Jan 2, 2013 13:08:36 GMT -5 hamster said:

We were looking for a vehicle that was better for me to drive over the pass, go on gravel roads, etc. Because of our work schedules, I often have to meet H camping a couple hours away and neither of us were comfortable with my car's capabilities in that situation. It's all around a better fit for our lifestyle.

Thanks for the update. It sounds like you're not really interested in having 3 cars, then. I had unfortunately missed in your OP that the Focus was paid off and the Jeep still has a loan, so that means there isn't as easy a financial argument either way. I don't know how old the jeep is, but is it safe to assume the loan is more than you could get for selling the car? I guess either way if you're unwilling to sell the jeep then selling the car (either to pay off the personal loan or to pay off part of the jeep loan) is the most financially sound decision. Not environmentally sound, of course, but this is a MM board.

Year wise, the jeep is 5 years older but only has about 10,000 more miles than my car. We put money down on the jeep, so we only financed about 2/3 of the value.

I'm ok with owning three cars if it doesn't make sense to sell the Focus, but more and more it seems like that's the smarter option since we're not looking to get rid of the other two vehicles.

[spunkarella]

Jan 2, 2013 18:24:33 GMT -5 @missy1 said:

I would sell the Focus. Since the amount you save in gas is about equal to the cost of insurance, there is no point in keeping it even though it is fuel efficient. I like that you plan to pay off a personal loan to free up money.

+1

[SJ]

Given your restrictions, I would sell the Focus.

[Deleted]

I thought camping was supposed to be a cheaper hobby.

I agree to sell the focus.

[rubytue]

As another 3-vehicle household (two daily drivers and a truck)...

Have you lowered coverage on the Focus? If its paid off and you wouldn't replace it, then you might want to go down to just collision. That might make enough difference in the insurance to sway you one way or another.

I'd probably keep the Focus b/c I'd prefer to see smaller gas bills weekly, even if I had done the math and "knew" it wasn't helping. Its not hurting either.

FWIW, we just bought a "new" truck, which MM would probably not approve of lol

[hamster]

Jan 2, 2013 20:24:22 GMT -5 rubytue said:

As another 3-vehicle household (two daily drivers and a truck)...

Have you lowered coverage on the Focus? If its paid off and you wouldn't replace it, then you might want to go down to just collision. That might make enough difference in the insurance to sway you one way or another.

I'd probably keep the Focus b/c I'd prefer to see smaller gas bills weekly, even if I had done the math and "knew" it wasn't helping. Its not hurting either.

FWIW, we just bought a "new" truck, which MM would probably not approve of lol

I actually hadn't considered lowering the insurance, but we're only paying $1200 a year for all three vehicles. Would it even make that much of a difference?

As long as H and I can continue to carpool, the gas bill is pretty manageable. It's the uncertain future of where I'll be working that will sting. Of course, maybe I'll actually be making a decent salary at that point....

But I'm not going to lie, it's the idea of getting that loan paid off that's really swaying me over anything else! I want that monthly payment amount back in my life! lol.