oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 10:28:40 GMT -5
I went to tutor this morning and mom said 'you're good with finance stuff... what would you do..." I told her i'd put it out to the board. Its a tough one.
2011 van with 135K miles on it. They have done some work on it already, husband does most himself and a mechanic friend helps. Now it needs a new transmission. Husband unsure he can handle that; friend doesn't do transmissions. They can get a used one with 80K miles for around 1K but what if husband can't make it work? Taking it to a place that does transmissions the estimate is 3500.
The trade in value right now for vehicle is 'a few hundred' to 1K. The place that said they would give 1K said working condition it would be 3-4K. In full working order mom thinks the van might sell privately for 4500.
They still owe over 6K on the van. They didn't roll any old loan into this one, so either paid too much or took too long of a payment schedule for the current van.
They could get a new one (i'm not sure what is the make) with 35K miles for 18K but then rolling in the old loan makes it over 25K. This means a 7 YEAR loan would still add 120-140 a month to their current budget. She said she can find it, but it makes it tight.
They currently have about 4K in their savings for things like this (i didn't ask if that was all of their total savings...) but this is also what they dip into when husband doesn't have overtime, so more a cushion, and she said they'd probably get a loan to cover the 3500 if they fixed the van 'till tax return time' (can't fix everything at once...)
What would you advise? What would you do? I tried to give as many details as possible. They have 3 kids plus a private foster (no income) so need a vehicle that can hold 4 kids.
|
|
obelisk
Familiar Member
Joined: Nov 12, 2014 14:49:16 GMT -5
Posts: 554
|
Post by obelisk on Jul 3, 2019 11:06:26 GMT -5
In this situation I would replace the transmission with the used unit. Your husband and his friend can watch utube videos on this exact topic. It is not a difficult job to replace an automatic transmission.
|
|
geenamercile
Senior Member
Joined: Dec 17, 2010 16:40:28 GMT -5
Posts: 2,477
|
Post by geenamercile on Jul 3, 2019 11:12:18 GMT -5
If they can sell privately I think I would do that. But I doubt they will be able to do that, unless it runs well enough and they don't disclose the transmission problem to fool the new buyer. I wouldn't feel comfortable with that. We were in that situation with the KIA. But anyways, I would sell privately, use that to pay the loan with some from savings. Then look into getting the new with 35K on it. Try and see where I could cut to cover the new loan, and take it for less years. Maybe take another 1000 from savings for a down payment? But I tend to be in the buy old cars with cash and run them till they die and save for the next old car. Scrap place normally will give me 300-400 for the old car to start the next saving. I also tend not to be picky about cars. Although we did not use that plan with the aspen that DH currently has because we were being picky on what we wanted. I really want to get that loan paid off.
|
|
geenamercile
Senior Member
Joined: Dec 17, 2010 16:40:28 GMT -5
Posts: 2,477
|
Post by geenamercile on Jul 3, 2019 11:16:43 GMT -5
I think they will end up going with fixing the transmission.
|
|
Deleted
Joined: Mar 29, 2024 3:40:32 GMT -5
Posts: 0
|
Post by Deleted on Jul 3, 2019 11:20:11 GMT -5
Well, I was going to say to just ditch it until I saw the 6K loan part. I think it would depend on the make/model of the van to me and if I thought it was already end of life, but I'd really lean towards replacing the transmission. If I didn't do that, I would use the savings and whatever I could get from the van to buy a cash car in the 5-6K range. I would not tack 18K more onto the debt they already have.
|
|
geenamercile
Senior Member
Joined: Dec 17, 2010 16:40:28 GMT -5
Posts: 2,477
|
Post by geenamercile on Jul 3, 2019 11:23:47 GMT -5
Some how I don't think these are the people who are going to be happy with a 5K-6K van.
|
|
|
Post by The Walk of the Penguin Mich on Jul 3, 2019 11:25:31 GMT -5
Is the van a model where problems crop up? 135k is not a lot of mileage to have on a vehicle these days, and if the transmission goes.... what happens if the engine goes next? What sort of shape is it in? Has maintenance been done on it?
All of these would factor into my decision. I’d probably be doing a lot of digging into the life time of this particular model.
|
|
Deleted
Joined: Mar 29, 2024 3:40:32 GMT -5
Posts: 0
|
Post by Deleted on Jul 3, 2019 11:41:29 GMT -5
Some how I don't think these are the people who are going to be happy with a 5K-6K van. They're driving a 3-4K van now.
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,357
|
Post by Tiny on Jul 3, 2019 11:46:31 GMT -5
They still owe over 6K on the van. Whoa. It sounds like they have 36 or more payments on this van? How many miles per year on they putting on the van? I'm hoping they are putting 10K or fewer per year... I'm assuming the van at 200K is at the end of it's life.... Will the van last until the payments are gone - even if they fix the transmission and nothing else big goes wrong? Vehicles wear out. OK, They are in a tough place. I think they are gonna need to figure out some way to keep the van running - via "elbow grease" versus money. Can they network or trade favors and have someone fix the vehicle? Or help with fixing the vehicle. Once it's fixed (or limping along) Do they have access to another vehicle - via a relative or friend that they can "borrow" - maybe not for every day but for necessary trips (like a weekly grocery run?) They need to nurse the van along until they can get it paid off and get a new vehicle. This isn't a one and done thing... or a "do X and it will be ok right away". This is something that requires a 12 month (or longer plan)... they're ship is leaking and will sink with them in it if they aren't careful. They need a long term plan. Can they increase their income (with all extra going towards getting them off their sinking ship?) (the "nurse it along" and rely on friends/relatives for a vehicle (or a ride) combined with make more money and suck it up and suffer and then make a better choice when money is avialable and suck it up and continue to suffer and earn more $$ until things start getting better... and then loosen the belt alittle... but keep striving/saving is a common theme in my family.... The failure point is when the "goal" has been achieved it's a free for all spending spree - which usually results in being back where they started (no money, debt, some actual emergency ) rinse and repeat until they figure out that the famine/feast cycle doesn't work.  
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 11:56:23 GMT -5
Yes. They were told this transmission thing happens to this model. The old one is Chrysler town and country the new one would be dodge caravan.
The problem is even selling it with savings as is won’t pay off the loan...
Im logging answers. Keep them coming.
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 12:03:59 GMT -5
Safe is all that matters to them. And being able to haul 4 kids without breaking down.
|
|
grumpyhermit
Well-Known Member
Joined: Jul 12, 2012 12:04:00 GMT -5
Posts: 1,432
|
Post by grumpyhermit on Jul 3, 2019 12:09:54 GMT -5
While not what I would WANT to do, I think they need to go the cheapest route; buy the used transmission, and try to install it themselves. Would the "new" transmission come with any type of warranty, or would they be SOL if the replacement transmission goes in 6 months? I have gone the "replace the transmission" route before, and that transmission failed within a year (it was professionally installed).
Going 10k into the hole on a 2011 van with known transmissions issues would be madness to me. So would rolling that loan into basically the same type of van, but newer. They will never dig themselves out of their car hole if they do that.
I think their main priority, in addition to a running vehicle, needs to be to try to get away from it as soon as possible, and minimize the financial impact (as much as possible). I know they won't do it, but if they could scrounge up an extra $120 a month for an increased payment, they need to be banking that towards their next car down payment now, so when they are in a position to replace it, they can hopefully get out of the shitty American mini van market and get something a bit more reliable.
|
|
|
Post by The Walk of the Penguin Mich on Jul 3, 2019 12:18:38 GMT -5
Yes. They were told this transmission thing happens to this model. The old one is Chrysler town and country the new one would be dodge caravan. The problem is even selling it with savings as is won’t pay off the loan... Im logging answers. Keep them coming. So why would they want to buy a new to them van with the same known issues? According to CR, other trouble issues with this model are brakes, leaks, electrical system and power issues. Older models of the Dodge Caravan have the exact same problems.....so it seems to me that if they buy this new car, in 3 years they will be in the exact same place.
|
|
Pants
Junior Associate
Joined: Dec 27, 2010 19:26:44 GMT -5
Posts: 7,579
|
Post by Pants on Jul 3, 2019 12:36:14 GMT -5
It sounds like maybe they took a 10-year loan on the car. Which is... well, it happened. So now here we are.
They need to buy the used transmission and install it themselves. It's the only reasonable financial option with the facts laid out.
|
|
Deleted
Joined: Mar 29, 2024 3:40:32 GMT -5
Posts: 0
|
Post by Deleted on Jul 3, 2019 12:41:54 GMT -5
A Chrysler and a Dodge. The hole keeps getting deeper.
Is the $3500 estimate for installing the transmission for putting in a new one? Could they find a mechanic that would put in a used one they buy? Maybe some guy that does work on the side from home? We have some backyard shop mechanics around here that just enjoy fixing cars as a hobby.
|
|
souldoubt
Senior Member
Joined: Jan 4, 2011 11:57:14 GMT -5
Posts: 2,745
|
Post by souldoubt on Jul 3, 2019 12:43:50 GMT -5
Given the facts I agree the $1K option of having the husband and his friend try to install the transmission is the best route. It's the cheapest possible option and if it works they save on paying someone else to install the transmission.
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 12:46:45 GMT -5
Yes. They were told this transmission thing happens to this model. The old one is Chrysler town and country the new one would be dodge caravan. The problem is even selling it with savings as is won’t pay off the loan... Im logging answers. Keep them coming. So why would they want to buy a new to them van with the same known issues? According to CR, other trouble issues with this model are brakes, leaks, electrical system and power issues. Older models of the Dodge Caravan have the exact same problems.....so it seems to me that if they buy this new car, in 3 years they will be in the exact same place. You mean the new van also has these known issues? I don’t know anyth8ng about vans. What is a good one?
|
|
|
Post by The Walk of the Penguin Mich on Jul 3, 2019 12:57:34 GMT -5
So why would they want to buy a new to them van with the same known issues? According to CR, other trouble issues with this model are brakes, leaks, electrical system and power issues. Older models of the Dodge Caravan have the exact same problems.....so it seems to me that if they buy this new car, in 3 years they will be in the exact same place. You mean the new van also has these known issues? I don’t know anyth8ng about vans. What is a good one? CR has avoid model years 2005-2012. However, if you look at the problem section for this specific model, the problems crop up into 2013. I only have a 2016 buying guide, so can’t tell if 2014-2016 also has them. You didn’t mention what year Caravan they are looking at, and I don’t know how more recent models do......but I do know Caravan has had transmission problems forever. I know my inter put 3 transmissions in their’s (I think the first couple were under warranty) and this was in a 1990s model.
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 13:04:40 GMT -5
New one is 2018 sorry. Also they do put on a lot of miles. I think someone asked that question.
I don't charge this person to tutor. Their long term foster is a prison ministry. He was born with teen mom in prison. She has had him since birth, he’s 2 now and will have him at least 2 more years. Takes him to prison to see his mom every week in addition to other driving which is a hike. Pays her cable, extras, etc. she was saying those are some if the things she’d probably have to cut which she feels guilty about but it is what it is. She had another foster the last year too, traditional, but that is ending. She is just one of the best people I know, the only person who calls herself a Christian I see living her faith and accepting of anyone.
But she stays home, homeschools, they make do on one salary but probably aren’t amazing with money..
|
|
giramomma
Distinguished Associate
Joined: Feb 3, 2011 11:25:27 GMT -5
Posts: 21,148
|
Post by giramomma on Jul 3, 2019 13:05:52 GMT -5
How old are the kids? Do they go places together a lot as a family of 6? Is their only vehicle? What are the options for second jobs or working opposite shifts? Is there opportunity?
I can count on one hand how many times the six of us have driven together on two hands since January. We've done just fine with the Subaru Outback for , but when I have 3 or more kids, DS sits up front. DH has the mini van.
My Subaru needs 3K worth of work. It is 12 years old and has 82K on it. I can spend about 8K, on a new to us car. Which will get us my 12 year old Subaru with double the miles.
Of course, it's different because my fixes are more watch and then do it when we need it.. I'm hoping then that if we spend the 3K, that will nudge my car along for another few years so that we can put off buying a car until I'm done with school. If we have to get a replacement before I'm done with school, I'm seriously looking at a lease. There's no bandwidth to do car research right now. Anyway, in their situation, I would be hard pressed to spend down the savings...particularly if it's all they have. I'd take the risk and do the 1K transmission, cut back everywhere and get more income.
If they can't do that, then probably my next choice would be to get a newer car, with the bigger loan, and then find as much extra work as possible so they stop the cycle of being upside down on cars. If they are a two car family...I might look into some other options, depending on the worth of the other car.
|
|
dannylion
Junior Associate
Gravity is a harsh mistress
Joined: Dec 18, 2010 12:17:52 GMT -5
Posts: 5,194
Location: Miles over the madness horizon and accelerating
|
Post by dannylion on Jul 3, 2019 13:14:38 GMT -5
New one is 2018 sorry. Also they do put on a lot of miles. I think someone asked that question. I don't charge this person to tutor. Their long term foster is a prison ministry. He was born with teen mom in prison. She has had him since birth, he’s 2 now and will have him at least 2 more years. Takes him to prison to see his mom every week in addition to other driving which is a hike. Pays her cable, extras, etc. she was saying those are some if the things she’d probably have to cut which she feels guilty about but it is what it is. She had another foster the last year too, traditional, but that is ending. She is just one of the best people I know, the only person who calls herself a Christian I see living her faith and accepting of anyone. But she stays home, homeschools, they make due on one salary but probably aren’t amazing with money.. Why isn't their church stepping in to help them?
|
|
giramomma
Distinguished Associate
Joined: Feb 3, 2011 11:25:27 GMT -5
Posts: 21,148
|
Post by giramomma on Jul 3, 2019 13:15:32 GMT -5
Why are they stuck on mini vans? Is that the only car buying option? So I did a quick google search of the 10 best vehicles for a family of 6. Hyndai and Kia came up on the list.
I just looked at craigslist and found a Kia Sorento 2013, with 100K miles, for under 8K. I think these two brands are supposed to be decent enough quality. Suburbans also made it on that list.
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 13:19:32 GMT -5
New one is 2018 sorry. Also they do put on a lot of miles. I think someone asked that question. I don't charge this person to tutor. Their long term foster is a prison ministry. He was born with teen mom in prison. She has had him since birth, he’s 2 now and will have him at least 2 more years. Takes him to prison to see his mom every week in addition to other driving which is a hike. Pays her cable, extras, etc. she was saying those are some if the things she’d probably have to cut which she feels guilty about but it is what it is. She had another foster the last year too, traditional, but that is ending. She is just one of the best people I know, the only person who calls herself a Christian I see living her faith and accepting of anyone. But she stays home, homeschools, they make due on one salary but probably aren’t amazing with money.. Why isn't their church stepping in to help them? This is a good question to pose.
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 13:23:38 GMT -5
Why are they stuck on mini vans? Is that the only car buying option? So I did a quick google search of the 10 best vehicles for a family of 6. Hyndai and Kia came up on the list.
I just looked at craigslist and found a Kia Sorento 2013, with 100K miles, for under 8K. I think these two brands are supposed to be decent enough quality. Suburbans also made it on that list.
I’ll ask. It might be that they have been 7? The second foster leaves Monday. I don’t know that they plan to take placements right away but maybe that is a consideration? Husband has a vehicle he takes to work but I don’t think it holds everyone...
|
|
|
Post by The Walk of the Penguin Mich on Jul 3, 2019 13:41:27 GMT -5
Why are they stuck on mini vans? Is that the only car buying option? So I did a quick google search of the 10 best vehicles for a family of 6. Hyndai and Kia came up on the list.
I just looked at craigslist and found a Kia Sorento 2013, with 100K miles, for under 8K. I think these two brands are supposed to be decent enough quality. Suburbans also made it on that list.
I’ll ask. It might be that they have been 7? The second foster leaves Monday. I don’t know that they plan to take placements right away but maybe that is a consideration? Husband has a vehicle he takes to work but I don’t think it holds everyone... So if they have a second car, a van is not a necessity. I agree that they need to look at models without known problems....even if they are older. Perhaps with them dealing with transportation issues, it might be smart not to replace their foster immediately.
|
|
giramomma
Distinguished Associate
Joined: Feb 3, 2011 11:25:27 GMT -5
Posts: 21,148
|
Post by giramomma on Jul 3, 2019 13:52:47 GMT -5
Sort of along the lines of Mich, Are they willing/open to treat the problem or do they just want to treat the symptom? The problem is they likely aren't making enough money and perhaps aren't being good stewards of it, as you mentioned.
It might be a good time, to ask the mom to chat with her husband and come back to you with the family's top 3 financial goals... And then run through every line of their budget (both expenses and income) and ask "Does this support the three goals you agreed upon" Anyway, this exercise might provide a pathway to a longer term solution that will help them better than just the car issue. Today it's the car. In the future, it will be something else. Get enough of those, bunched together, and they could be in big hole. It's admirable that they want to help others. Perhaps this particular way isn't the best for them.
|
|
Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,708
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Jul 3, 2019 14:47:08 GMT -5
I was also curious as to whether or not they have to have a van. There might be other options. I'm not one to replace a transmission. That's happened to me twice. I just don't see the value in paying that much to replace a transmission and still have that old of and/or that high mileage of a car.
So, based on my past decisions, I'd roll the loan into another loan. I do understand why some people don't agree with that plan.
|
|
geenamercile
Senior Member
Joined: Dec 17, 2010 16:40:28 GMT -5
Posts: 2,477
|
Post by geenamercile on Jul 3, 2019 14:56:27 GMT -5
There are vehicles out there with the two back seats that are not mini vans. We were looking a Nissan Pathfinder and a Nissan Armada when we looking in the fall. Toyota Sequian. We had the insurance give us a Toyota Rav 4 and it had a 3rd row seat as well.
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,698
|
Post by jerseygirl on Jul 3, 2019 16:49:24 GMT -5
Think replacing a transmission is NOT easy Don’t want to spend money and time on used and amateur and end up still not working
|
|
oped
Senior Member
Joined: Aug 20, 2018 20:49:12 GMT -5
Posts: 4,676
|
Post by oped on Jul 3, 2019 16:51:24 GMT -5
Think replacing a transmission is NOT easy Don’t want to spend money and time on used and amateur and end up still not working I think this is a concern.
|
|