/biz/ - Business & Finance

[Anonymous No.10018118]

So I'm kind of bad at this and I need some help

I'm running some numbers on my car loan. It's a 2014 VW Jetta GLI, and right now it has 48,000 miles on it. I drive (just for the sake of making the math easier) about 1,000 miles a month.
>I have $6,470 left on my loan
>my payment is $353 a month (about 18 payments left)
>as it sits, it's worth $11,112 (KBB value)
>when I pay it off, it will be worth $10,022, assuming that a 2014 car is worth in 2020 what it's worth now (which it won't), otherwise I'd guess $7,000

So if I sell it now, I can walk away with $4,642.
And adding one month of payments and 1,000 miles for each new value:
>$4,932 ($290 higher)
>$5,223 ($291 higher)
>$5,512 ($289 higher)

So, because cars are depreciating assets, I'm pretty much setting $63 on fire every month. Not counting insurance and all the other random expenses involved in owning a car.

In my mind, I'm getting fucked. I'm thinking about selling this car as soon as I can come out with more than $5,000, borrowing $15,000, and buying something nice and used. This way I can get my monthly payment down closer to $250. Plus older cars are cheaper to insure, so I can either pay less or get better insurance.

Which is the wiser thing to do:
>sell car in 2 months, gibe $5,000, take $15,000 loan, buy older used car for $20,000.
>have much lower monthly payment, cheaper insurance, probably something a little more fun than a Jetta.
>buy something like a used Porsche (Caymans are cheap) that will hold value a lot better, not get fugged on depreciation

or

>sit on it until 2020, pay off the loan
>either sell it or keep it then

[Anonymous No.10018149]

Long story short: you will never make it

[Anonymous No.10018164]

I should say also, I'm also very nervous that something on the Jetta is going to break as soon as the warranty ends and it'll cost $gorillion. This is a work car and I've beat on it kind of hard. The thing I'm the most worried about is the transmission. It's already had some major (major) mechanical problems that were covered under warranty. It's been reliable for the most part, but I don't think I trust it on the very long term.

[Anonymous No.10018174]

>>10018149
If I have to get fucked I at least want to enjoy it though.

[Anonymous No.10018239]

If it's truly unreliable then sell it now and get a cheap Jap car then you retard.

[Anonymous No.10018281]

>>10018118
Just save up money until you can buy a car for cash. Car loans are seriously stupid. You can get a good working/looking car for 5K used