[Make sure to check out Part 2: “Wow, Yeah, Unfortunately We Need to Go Car Shopping — What Now?“]
So we just spent $1150 on car repairs… oh, and the trade-in value for our car is roughly $500 (from a dealer; we could surely get quite a lot more selling it ourselves, but probably still less than $1150). When does spending more money on repairs than the value of the car make sense financially? Let’s explore [cue evil laugh].
Recently I’ve had the pleasure of corresponding with an absolutely lovely young couple that wanted some advice. For anonymity’s sake, let’s call them…Amelia and George. Amelia and George are wonderful savers, partially due to necessity right now, as George is a full time student and Amelia is the current breadwinner with a small salary at a nonprofit. They both have sizeable side-hustles that are bulking up their income, but money is tight.
And they really want a house, possibly even a tiny house. Oh, and they have no credit score to speak of. Oh, and they may have to move in two years after George has graduated. Oh, plus, since we first started communicating months ago, a decision has already been made – the suspense!