I asked this the other day, but will ask again and provide some more detail.
My hubby made a really bad decision & bought new a 06 Subaru Baja Turbo that has about 40k on it (he bought it 12/06). On top of his full time job, he delivers pizzas about 25 hrs a week (he works this much to pay for the Baja). He owes about 18k- we can't afford to pay extra principal. He will still deliver pizzas after it's paid off because he likes to have extra $. He gets about 20 mpg which sucks for his p/t job and our budget, also considering that he uses 93 octane gas for the turbo.
Our 2nd child is due in December, and after that I'm not going to be working full time outside the home anymore. (This was all in the 'plan' when he bought the stupid car). I've been telling him that it was unpractical all along, and now with the unstable economy and gas prices all over the place, he's starting to see that and is talking about trading his car in on something smaller, more fuel effiecient and with cheaper payments- like a Kia Rio or Hyundai Accent.
The base price is around 10k, and he'll have about 5k neg. equity in the Baja, so he'll be financing almost as much as he owes now. I've done some research and according to all the online calculators on financial & car websites, he'll break even in about 3 yrs.
I talked to my most financially intelligent person I know, and he said he wouldn't do it, but that IF we did, the only way it COULD make financial-sense would be to continue to pay the amount we've been paying on the Baja to pay it off quicker and pay less interest over time.
But all the financially advise in the news is saying 'keep ur gas guzzler because they have no re-sale value' and 'don't take out any new loans that you don't HAVE to', etc.
Now all that being said- What would you do????? I don't want him to make another bad decision, because there is so much more at immediate stake than there was almost 2 yrs ago.
Orignal From: Trade in upside down vehicle?
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