Purchase or pay off debt?

[Anonymous]

I'm looking for help making a decision regarding purchasing an automobile. I hope some of you out there will be willing to give me your opinion as to what you think I should do. "In a multitude of council........." Anyway, here goes.  I recently inherited a nice size chunk of money.  I have used about 2/3's of it for some home repair/improvement and to pay off most of my debt. I own my home/land and the only debt i have right now is for an adjacent 1/2 acre I bought last September & school loans from way back when (kept filing for forebeareance on them ) I work for a good company & have a good job w/great pay. I also have a company car (2004 Kia Amanti) but no personal car of my own.  The company is selling some of their excess trucks.  There is one, a 2005 with 170,000 hwy miles selling for 5500.00.  I am considering buying it & must let them know today.  I don't need it particularly now but would need something if I did not have the company car. Never know what could happen: it could break and the company not want to replace it, I could get lost in a downsize and then have no way to get to and from another job, etc. etc.  BUT (being as i don't think the last scenario will happen any time soon) I could take that money I would spend on the truck and insurance each month and pay down more debt (school loan and land mortgage).  I'm just afraid of letting a good deal pass by. What do you think?

[haulingthescoreup]

I don't know that a 2005 truck with 170K miles is that good a deal. How well have they been taken care of?

An alternative that I didn't see mentioned is savings/ emergency fund. Honestly, I think that's what I'd do with the rest of the lump sum. If you lose access to the company car, you could then decide to get a car for yourself. If they don't pull the car, you aren't stuck with an extra vehicle to insure and maintain.

One thing that we've all learned over the last year is how crucial an emergency fund is. A year ago, I was still reading advice to have 3 months' worth of expenses saved. Today, I read an article that advised to have a year's worth of expenses saved.

[Anonymous]

Thx.  I've talked to a few people and get mixed answers. But actually for the most part, the ones i trust in regards to financial matters the most, tend to agree with you.  unfortunately not many people nowadays give that kind of advice.  Most of what i heard was to buy it cause i could get it cheap and have the money to do so right now and who knows something might happen and i won't have the money or opportunity later. (I work for a relatively small company so i know the vehicles have been taken care of). i have never had any money before and have always robbed peter to pay paul.  i am trying to be make wise decisions now and think about the future more.  the people i know are either ones that have lots of money and all they think and talk about is investing which i dont' have that kind of money, or those who only think of money as something to spend on the next "toy."  my goal is to have no debt and my home and a vehicle free and clear so that if anything ever happened to this job, i could work for minimum wage if necessary and still have plenty.  i'm pretty close to that goal now and don't want to mess up my progress.  i really appreciate your input and think you've definately given me some sound advice.  thanks again for the help. 

[Uborrow-Upay]

Hauling's advice is right on target.

Don't buy the vehicle.  Put the money in a credit union, then forget you have it.

And if and when the time comes that you need a vehicle, you'll be in a good position for a low cost loan from the credit union to purchase a vehicle then, while still having your cash reserves.

An auto can be an albatross, what with insurance, taxes, maintenance and repairs.  You don't need that right now.

Keep on track, get debt-free and have a great life!  Sounds like you're there already.

Carry on... 

[Imhotrodcrazy]

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cklync wrote:
I'm looking for help making a decision regarding purchasing an automobile. I hope some of you out there will be willing to give me your opinion as to what you think I should do. "In a multitude of council........." Anyway, here goes.  I recently inherited a nice size chunk of money.  I have used about 2/3's of it for some home repair/improvement and to pay off most of my debt. I own my home/land and the only debt i have right now is for an adjacent 1/2 acre I bought last September & school loans from way back when (kept filing for forebeareance on them ) I work for a good company & have a good job w/great pay. I also have a company car (2004 Kia Amanti) but no personal car of my own.  The company is selling some of their excess trucks.  There is one, a 2005 with 170,000 hwy miles selling for 5500.00.  I am considering buying it & must let them know today.  I don't need it particularly now but would need something if I did not have the company car. Never know what could happen: it could break and the company not want to replace it, I could get lost in a downsize and then have no way to get to and from another job, etc. etc.  BUT (being as i don't think the last scenario will happen any time soon) I could take that money I would spend on

 the truck and insurance each month and pay down more debt (school loan and land mortgage).  I'm just afraid of letting a good deal pass by. What do you think?

IMHO, if you dont need it, dont buy it.  I am with everyone else.  Save the money.  I drive a 25 yr old pickup with 186,000 miles on it, but I bought mine new knowing I was going to  have it til I died. It still looks new because I keep it that way. 

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