so I recently got back into my account here and forgot how wonderful all the info is on these forums and decided I need some advice/help with car loan. I currently own a BMW (I have the title in hand), I paid for it a few years ago using a personal loan from a local bank (I owe roughly 3k on personal loan still). The car value on kelly blue book is $6000 which I figured I have two options either sell now and pay off loan and use other half as down payment on new car OR (this is kind of a side story) I recieved a paid internship in California starting this weekend and the company is paying for my apartment, all utilities, and travel. Basically all money I make working this summer ($45 an hour $65 an hour over 40-hours) is pocket money. My monthly bills total is a little over $700 for (cellphone, insurance, loan payment, student loan interest payment, etc) So with all this said my option 2 would be to save the $3000 and pay off the car and keep it until it dies (it's getting ready to kick the bucket very soon) and just keep saving for down payment on another car but my other dilema is I live in Pennsylvania and attend Penn State University and I graduate in a year plus one extra semester (picked up a minor) but it seems that with my degree I'll probably end up accross country and I'm struggling getting a 4 or 5 year auto loan if I'm just going to move my entire life in a about a year. What do y'all think? Sell now and pocket $3000 or drive til its dead(could potentially last me until gradutation) and save my summer money for new car after graduating?
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My instinct in your situation would be to wait and buy or lease a new car in a year or two when you're done with school and settled somewhere with a new job.
Generally I'm not a big fan of leasing, for several reasons. Leasing usually only works well in certain situations. Most of the time you're better off financing a car. Of course, YMMV but it sounds like you tend to keep your cars (which is financially smart) so buying is a better option for you.