No. of Recommendations: 0

I wrote about this as part of another thread (FYI, buying a house is now on the back burner...and also my partner got a different job making about twice what she was making before which is YAY!) but I am struggling with this part now.

A little over a year ago, (like, a month before I got my membership here), I borrowed $9500 from my boss at 5% to buy a 1999 nissan sedan for $8600. I pay $200/month normally, and owe about $7000 on it now.

I am trying to reduce my expenses and I don't really think I want a car that costs that much right now, plus I will be leaving my job in the next 2 - 6 months and it's not clear if the loan will need to be paid back immediately.

I will not replace the car (my partner is now buying the truck on her own since she's rich ;). She will buy the truck when I sell the car (we only need one vehicle in the household. As far as expenses, insurance will go down (we are looking at $3000-$4000 trucks) and gas might go up (though my car gets a dismal 16 mpg in the city!).

The problem is I am upside-down and I can't really tell, but I believe my car is depreciating faster that I am paying it off, so I may be going further into debt each month. I look on CL and the 2001 version of my car (I don't see many 1999s or 2000s) seems to be selling for about $6000!! I checked Kelly Blue Book, which says my car should be worth about $6500.

How do I tell if I am getting further into debt each month or closer to breaking even?


Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.