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No. of Recommendations: 3
Thanks ThyPeace! Thoughtful as usual!

Let me see if I should look at this car sale differently. There are a few who are gently telling me I am an idiot and that's fair. I AM the guy with the debt.

We have a $7200 car that has no loan. We want to sell the car and use the cash to pay down credit card debt. We want to do this as quickly as possible.

Clutch went out one night. Car was towed to the repair shop 16 hours later. It is a $1000 job for the shop to do it. If anyone is following the math and thinking that the $7200 car needing a $1000 repair is therefore worth $6200 as-is, that is patently incorrect. That is not how it works. The car is worth around $1500 "as-is" with no clutch. Instead of $7200, I'll use a fast sale price of $6500 for comparison. Here goes:

Option 1: Current loan ($0) + $6500 sale price - $1000 repair expense = $5500 in the black.

Option 2: Current loan ($0) + "as-is" sale price $1500 - $0 repair = $1500 in the black.

Also note, the car will sell faster at $6500 than it would for $1500.

$1500 cleared vs $5500 cleared.

Does anyone really think the extra $4000 is not worth it? Please explain. I'll keep an open mind.

The car was towed to the repair shop the very next day. I am farming out the job to get it done more quickly. I couldn't do the job in this weather if I wanted to. I am sure that work didn't start over the weekend, but that is the only "letting it sit around" that is happening. The car is IN the shop bay. To the extent that it is in my control I am in hurry-up mode.

Very realistically, the $5500 I end up with will pay off CC#2 AND lower my overall interest rate. I don't see a fast win in settling for $1500 and leaving $4000 on the table. I only bring home $2200 every 2 weeks from my regular full-time job. An extra $4000 isn't chump change to me.

If a guy who is $50 thousand in debt should blow off a fast $4000.00, then I have a LOT to learn! I am all ears though and I'll try to digest the reasoning.

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