May have to sell the car....need suggestions - 986 Forum - The Community for Porsche Boxster & Cayman Owners

Jake D · 09-28-2010, 04:39 AM

So here's the break down. I bought an 00 S with 30k last year after driving one and loved it. I am a 25 yr old school teacher and have been renting to own a house my mom owns for the past 7 years. I haven't had to pay rent in years as I have worked at my mom & stepdad's business on nights and weekends with no pay to cover rent. That's pretty much why I have been able to afford the car on a minimal salary.

Well my mom is now getting a divorce and is taking back my house so she has a place to go. I am not being kicked out but all my **************** has to go and I really don't want to have to live with my mom.

So here's where I am at right now.....

1.Sell the car to get rid of a $300 payment (3 more years till payoff) and consolidate my financial loans in order to get a place

2.Try to find a low budget foreclosure house that I can afford and fix up and see if I can roll the rest of my loan (roughly 10g's) of my car into the mortgage

3.???? Suggestions?

I don't want to get rid of the car but unless I win the lotto, I pretty much have no real options to get out on my own anytime real soon. Since the split and being back to school now, I have not been working at the business as an extra means of income.
I don't want to lose the car but I am also in fear now with my budget that if anything serious would go wrong with it I also would not be able to afford to buy the parts (I was a mechanic for 6 years all through college)

Thanks for the suggestions..

Highlow · 09-28-2010, 04:45 AM

I cannot help you with your questions, but I was considering powdercoating my wheels black (black boxster) and you just convinced me to do it.

Could you tell me how much you paid to get that done?

Jake D · 09-28-2010, 04:51 AM

Actually I scored those off of Craigslist already black for $400 with tires. I think generally its around $100 a wheel to have them powdercoated though plus the cost to have them stripped and treated.

husker boxster · 09-28-2010, 05:03 AM

Sorry to hear about your situation.

I suppose you only had a verbal agreement with your mom? If you've been upholding your part of the agreement, technically she shouldn't be able to break the deal.

However, if that's not possible, then I would look for a modest foreclosure that you can afford. Your $300 car payment isn't that bad, so unless you downgrade to a Hyundai I would keep it.

But, I wouldn't throw it onto the mortgage. That would mean you're paying for your ten yr old car for the next 15 or 30 yrs. Not a good idea. Here are some numbers to consider:

Don't know your current loan %, so I'll assume 7%. At that rate, the interest on $10K for 36 mo is $1115.

5% for 180 mo is $4234.
5% for 360 mo is $9326

You may need to get a real part time job to help get you through this rough patch, but it sounds like you're already doing that.

Good luck.

eightsandaces · 09-28-2010, 05:38 AM

How bout asking mom to buyout the boxster loan, it's not like 10k is doing that great invested anywhere else at the moment, you pay her simple interest and you both make out instead of the bank.. Can you still get the side gig with your mom's ex or is that too touchy? As sickening as it must be in the pit of your stomach, the best move if you are going to get a foreclosure is to strap in at her house and stockpile cash to pay down debt or to enlarge the down payment, good luck..

PS Don't ever let the kids at school find out, god this reads like the old mike meyer's middle aged man, skit....I'm old...

vipola · 09-28-2010, 05:53 AM

Just keep in mind that if you are currently tight, what will you do when something will break or need maintenance?.. Do you currently have another car or you'll just sell this one to pay another one and get back in the same situation?

schoir · 10-04-2010, 04:42 PM

Jake:

PM Sent.

Regards, Maurice.

HDManny · 10-04-2010, 07:16 PM

I'm sorry to hear about your job and possibly having to sell your Boxster, believe me when I say that I know how you feel. I lost my job over 2 moths ago and I will finally start working again next week, but my pay will be more than 35% less. After thinking about it for the past 2 months I traded my Boxster today on something more affordable based on what my salary will be. I will have to work my way back up and save money so that I can buy another one again in the future because I really enjoyed the car. Good luck.

fatmike · 10-06-2010, 09:41 AM

Bummer.

Forget the Lawyer. Move on.

/

SeanZ4 · 09-28-2010, 05:53 AM

You're very young and still at the beginning of this journey of life. You have lots of time to bounce back. Things have a way of working themselves out. When I was 28 (early 90s) I went through a nasty divorce and property dispute. I thought it was the end of the world and my life would never be the same. Now I look back on those years and wonder what it was exactly that I was so upset about. Can't remember now! Sounds like you had a sweet deal at your Mom's house. This may be a good thing as it will give you incentive to get your own place. Otherwise you wouldn't have bothered, just by human nature. It's very rare that you gain anything by trading down or selling your car with a loan on it to get something cheaper. I've been there when I was younger and it never really turned out to be a good idea. I'd try to hold on to the Boxster, within reason, as long as I could. Hang in there!

sean

Bruce Wayne · 09-28-2010, 12:21 PM

as a thought.... your mom is also going through bit of a tough time, maybe you could stay on till some dust settles, she'll probably need a bit of support from her number 1 son.

Gilles · 09-28-2010, 04:34 PM

Quote:

Originally Posted by Bruce Wayne

as a thought.... your mom is also going through bit of a tough time, maybe you could stay on till some dust settles, she'll probably need a bit of support from her number 1 son.

+ 1 timing is everything in life, later you'll know that you did the right thing..

Perfectlap · 09-28-2010, 05:07 PM

dude...

RENT a place. If you can't afford your $300 car you definitely can't afford a much bigger liability like a house (insurance, maintenance, utilities, taxes, etc.)

I like the idea of a foreclosure I'm actually doing the same in Florida. I started out helping out a relative who got in over their head on investment properties but only because the house will rent for the mortgage payment and they put down a pretty big down pament so the balance is manageable. Still an equity loser for the next 10 years (at least) but for now there's no mileage in screwing the bank if the renter can pay the montly nut. All that got me looking at listings and I've been to central and south florida and it is not unheard to see cash buyers walking away with homes at 10% of their 2006-2007 selling prices. BUT you have to be a cash buyer and I really don't recommend buying into a falling real estate market with borrowed money. Warren Buffet made a similar statement about taking risks with other peoples money, the surest way to go broke. This real estate market still has 12 to 18 months of down side and it could be the steepest yet. Banks are sitting on homes that are even listed yet for fear of flooding the market with more inventory. And that doesn't include the millions of homes that are inevitable foreclosures where the buyer can pay but the underwater math will never work for them. The house would have to double in value just to break even over the next 20-30 years. Jingle mail. People will just take out another loan for a bigger cheaper house with a different bank and screw over bank #1.

To be quite honest with you unless you are buying homes to rent them out (income property) I don't see the advantages of owning your own place right now. You have your whole life to buy property but your cash has this thing called "time value".
it's a special advantage that most 25 year olds piss away and has a limited time frame. The global economy is taking off with raw material production in Brazil, Chile and China surging. Think oil, steel, copper, iron ore you name it. Small (that's all it takes) EARLY investments now could pay huge rewards down the line.
Like buying Microsoft in the 80's.

1-Pay off your car while putting some away to invest.
2-take a second job bartending
3-pay your mom rent (find a girlfriend who has her own place, it's called a recession).
4-make a goal to stash away 8K a year while making payments on your car (good for your credit).
5-rethink your situation in 18 months. The govt is out of the mortgage backed securities racket for now and the home buyer's tax credit is history. There are more layoffs and bank closings coming in 2010 and 2011. Housing is only going to get cheaper while your bank account swells. Houses can't go up in value or even hold their current prices if people's incomes are not rising. Nobody and I mean nobody is betting on people earning more any time soon.

davemon · 09-28-2010, 12:35 PM

$300/mo for a car payment seems to be rather conservative. You'll have a hard time beating that by much... at best you'll have a $190/month car payment for a used something rather. Depends on your priorities but maybe taking an odd shift or 2 on the weekend for the $110 might be worth it. For me, the real question here is can you afford the odds and ends that Porsche ownership requires as opposed to the maintenance free experience Toyota or Honda offers? IMS/RMS/AOS, more expensive tires/brakes, canvas repairs, top cables, 9qts of syntec +$18filter all come to mind.

My Toyota has required 1) gas and 2) oil in order to run down the road. Yes brakes and tires to keep it on the road safely, but that is all. All of which are cheaper than the Boxster. (89octane for 32mpg, $5 oil filter, tires cheaper and last longer) Honestly it may be worth considering getting a cheap Toyota, running it for 5 years while you sock away money for a Porsche and don't have to worry about the ownership costs so much. OR decide you only are young once and definitely want the experience of Porsche ownership, at the cost of logging pt job hours. I drove the Toyota as long as I could before deciding I need my convertible before I'm too old to really have fun with it. (Admittedly I feel like I stole my uncle's car sometimes)

GL!

fatmike · 09-28-2010, 01:09 PM

I fail to see how selling the car will help you. What are you realistically going to get for an '00 S with 30K+ miles on it??? $15K? I highly doubt you'd actually get much more.

So then what? Pay off your $10K loan and end up with $5K? What kind of car areyou going to get that is more reliable than the car you have now (the devil you know). I just don't see how that helps.

I suspect you already realize that this is a car you shouldn't have bought in the first place.

I'd suggest you wait until you find a COMPELLING deal on a property. They are out there if your patient. In the meantime -- live with mom for a while.

Have you considered wrenching part-time? Folks will pay for a mechanic.

/

urban_legend · 09-28-2010, 03:23 PM

a) Picking up a girl in your Boxster and then going home with mom in the house?
Or b) trying to pick up a girl in a beater beige camry?

Seriously, I would try to make it till spring with mom, save all you can and then pick up a foreclosure. Good time to buy esp if you are handy.

There are a ton of foreclosure in the pipeline - so be choosy.

schoir · 10-02-2010, 08:12 AM

My girlfriend says find a rich girlfriend and your money problems will be over.

I say if you find one, let me know if she has a sister!

Seriously, there is a lots of good advice in this thread. I'm sure you will make the right decision.

Regards, Maurice.

BlitzSRM · 10-02-2010, 09:06 AM

Awh man sorry to hear this... especially now i've been looking forward to your Subaru Conversion.

Jake D · 10-04-2010, 02:34 PM

Well things just got worse..... Got fired from my teaching job over some hearsay **************** that I didn't do. I was working at a shady charter school with an at will contract. Probably cant do anything about it, but I'm going to have to try and lawyer up and see what happens.

When it rains, it pours

Perfectlap · 10-04-2010, 02:50 PM

my advice to you. Do not sit home waiting. Take whatever job you find now, whether it bartending (good recession job, people always budget for beer), waiting tables or working retail. Time is money. A career is great but ultimatley its about your piggy bank. If you have no growth in the piggy bank you'll be forced into worse and worse decisions. Once you've got some cash under your belt this might also be a good time to think about a career change. A friend was laid off and is studying to be a physician's assistant, a position that offers killer money with job offers in every bordering state. Another switched to physical therapy, another into pharmaceutical sales. I guess healthcare has job security.