We’ve had a few days to mull it all over, and we’ve come up with three options regarding the needed truck repairs. I’d love honest input here. DH will do whatever, and I tend to overanalyze and stress out making all the decisions.
I know several people mentioned that we need to get multiple quotes. We did. $4500 was the average for three places. The dealership and 2 local shops. I know most people avoid dealerships, but I worked directly with them for a decade, and know everyone there, so I trusted their input on what really needed to be done. Parts alone – for all three quotes – were exactly $3850. It’s the labor that varied.
Purchase newer truck, trade in current truck. Trade in value will not cover remaining loan balance ($8600), so we’d have to roll the remainder into the new loan. The loan details would be around $28k at 3% for 72 months, with a $457/mo car payment – that’s best case scenario. 😦 A huge jump from our current $257 payment.
Borrow money from our mothers (they’ve both offered, repeatedly), and have the truck repaired for the $4500. We’d pay them back either in installments, or in full once the rental house is sold (spring 2018 goal.)
Take out a loan with our bank. I’m not sure if we’d take out a personal loan or equity loan, it would depend on the interest rates available. This option has a part A and B…
- A. Minimal loan to repair truck, pay off credit cards, and repair the rental house to get it market ready.
- B. Larger loan to replace truck, pay off credit cards, and repair the rental house to get it market ready. This would be a lower monthly payment than option 1.
We already know we’ll have to take our a loan to repair the rental house, but we were waiting until closer to renters move-out date. Estimated repairs are about $15k at this point. Hopefully I can trim this with some sweat equity. Paying off credit cards would eliminate $450 a month in just minimum payments.
And that’s what we’ve come up with. If there’s another option, throw it at me. We need to get something done asap, this is our primary vehicle, and the one I have to drive hours away for specialists appts with my youngest.