Financial opinions required

VikashLurker

VikashLurker

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Hey guys

I might be emigrating by the end of this year, so I a trying to put a plan together and weigh out my options. The biggest assets to get rid of will be the house and cars.

Currently I drive a 2013 VOLVO XC60. I still owe about 250k on the vehicle. WeBuyCars have offered me R220k. Which leaves me with about a 30k shortfall.

I was hoping to get rid of the volvo, and get a cheapy Honda for about 30k to keep me going until december. In the hope of getting rid of that quickly when the time comes. It shouldn't loose too much of value so I should get my cash back.

Installments on the Volvo is around 5.5k. plus around 1k in insurance. Which gives me a saving of 6.5k per month (* 8 months = 52k)

Pros of doing this:
  1. Keep me liquid for an easy exit.
  2. Volvo services are steep, so I will be spending around 6-10k on the next service.
  3. Volvo will continue to depreciate till December. By then I will be desperate to settle the HP, which may mean a lower offer on trade in.

Cons -
  1. Driving a ****ty car for the next 8 months. (Trips include work and back, dropping the kids off in the morning.) We still have a decent SUV that is paid up that we can use for weekends etc.
  2. Unknown costs of service and breakdown of said ****ty car.
  3. I will still need to sell it come close to December. Might not sell as quick as I would like?


So what would you do, keep the Volvo till its time to go, and then just take the bath then, or get rid of it and stay liquid till December?
 
Look Honda's are reliable cars that been said selling the honda wouldn't be a problem.
 
hondaboysa said:
Look Honda's are reliable cars that been said selling the honda wouldn't be a problem.
Click to expand...

^
Hence me opting for honda/toy. However, at 30k ... it will be struggle for find something decent. Sure going more into the 40-50k mark would be safer, but then it would defeat the purpose IMO.
 
How far are you from work?
Can you survive on one car at all? Perhaps use uber for the odd occasions where 2 cars are needed.
List it privately now, should get more for it. What area are you in? Start asking friends, family etc etc (heck I wouldn't mind an XC60 depending on a few things for instance). I sold a bike once but needed it for another 2 months. Simply wrote that into the sales agreement between ourselves with reasonable mileage that would be added etc and everyone was happy (he only needed it in 3 months time for a long trip).

I'd personally avoid a sub 40k car if it was to do all the duties you mentioned above. Unless it was my car from the start and I know with 99% certainty that it will be fine
 
Archer said:
How far are you from work?
Can you survive on one car at all? Perhaps use uber for the odd occasions where 2 cars are needed.
List it privately now, should get more for it. What area are you in? Start asking friends, family etc etc (heck I wouldn't mind an XC60 depending on a few things for instance). I sold a bike once but needed it for another 2 months. Simply wrote that into the sales agreement between ourselves with reasonable mileage that would be added etc and everyone was happy (he only needed it in 3 months time for a long trip).

I'd personally avoid a sub 40k car if it was to do all the duties you mentioned above. Unless it was my car from the start and I know with 99% certainty that it will be fine
Click to expand...

About 35kms, so uber costs would be astronomical. SO is in a totally direction and works odds times, so car pooling with her would not be an option.

I could get more on a private sale however, I really don't want the hassles that go with it. But you do raise a valid point. I am not in any hurry to sell right now so someone could pick up a good deal.
 
So you want to sell your car to make a R30k loss, so you can spend R30k on a ****ty car to bring your total loss to R60k so you can save on repayments and insurance of R52k. Let me know if I'm missing anything there about how you are going through the major effort to spend R8k.
 
A 30k car is not by definition ****ty.

I get the impression you don't know much about cars so it may be difficult for you to navigate the second hand market but I never had problems with second hand cars and each one I had I sold at a profit.
 
Archer is right on the money there.

Line up friends or family or acquaintances who would be interested in the car at a latter date.

Don't try to profit off it and make the sales price that of the Settlement value and that way everyone wins.

I much prefer to buy vehicles knowing fully where they come from and always tell my friends if they are going to trade it anyway why not sell it to a buddy for the same money.
 
Sorry, not related to any advice, but you have a 2013 Volvo and still owe 250k on it? When did you buy it?

*edit*
If all else fails and you have a 30k shortfall, you can borrow that money and pay it off in 6 months that will cost you the same as your car installment, then try and join a lift club in the interim.

Or, sell the car right before you emigrate, then use the money you'll get from your house to cover the shortfall (again, if you forced to sell for lower)
 
Last edited:
You would be lucky if a R30k car had wheels.

Seriously, when you get to that end of the market, you don't know what problems you are buying. The risk increases dramatically. If you were an expert mechanic and knowledgeable about the particular make and model, you could buy with an informed opinion. But as it is, you would be taking a shot in the dark and dramatically increase your risk.

My advice - stick with the car you have now because it is the lowest risk for your time horizon. I doubt you actual savings would be anywhere what you think. Then trade it in right at the end.
 
Ancalagon said:
You would be lucky if a R30k car had wheels.

Seriously, when you get to that end of the market, you don't know what problems you are buying. The risk increases dramatically. If you were an expert mechanic and knowledgeable about the particular make and model, you could buy with an informed opinion. But as it is, you would be taking a shot in the dark and dramatically increase your risk.

My advice - stick with the car you have now because it is the lowest risk for your time horizon. I doubt you actual savings would be anywhere what you think. Then trade it in right at the end.
Click to expand...

They do exist indeed. I currently drive a 2005 Peugeot 206 1.4 which is paid off and mine. Car is pretty amazing in terms of reliability and low maintenance costs. Low insurance etc. If I had to sell that today the book value would be R35 000. Not planning on letting go of that car just yet and would definitely buy it again.
 
^^vampire^^ said:
So you want to sell your car to make a R30k loss, so you can spend R30k on a ****ty car to bring your total loss to R60k so you can save on repayments and insurance of R52k. Let me know if I'm missing anything there about how you are going through the major effort to spend R8k.
Click to expand...

This...^
 
Start advertising the volvo now for a private sale on Gumtree or whatever. Start with a high price seeing you still have time left.(Webuycars gave you a lower price because they still need to add profit and sell it. ) Drop your price as you get closer to the time and get more desperate.

I recently helped to shop for a car for my younger brother on a R30k budget and if you are used to the volvo and a SUV? You certainly won't like what you could get for that. I would say atleast R40k-R50k for a cheapy.
 
MrG said:
They do exist indeed. I currently drive a 2005 Peugeot 206 1.4 which is paid off and mine. Car is pretty amazing in terms of reliability and low maintenance costs. Low insurance etc. If I had to sell that today the book value would be R35 000. Not planning on letting go of that car just yet and would definitely buy it again.
Click to expand...

How long have you owned it for?

My guess is that you've owned it for at least 5 years and that is why you can trust it.
 
Ancalagon said:
You would be lucky if a R30k car had wheels.
Click to expand...

Just bought two this month - both came with brand new wheels.

My advice to the OP, sell the Volvo privately and buy a cheapie. Get a buddy who is more knowledgeable than you to help you find the right one. If you're concerned about reliability and maintenance then maybe push your budget to R40k and if you're buying a Tazz or similar, you can be confident about the fact that it won't lose value unless you damage it (if it wasn't overpriced to begin with). May even be able to sell at a profit.
 
Why would you spend anything on there next service on the Volvo? Surely under plan until sometime in 2013?

You'll definitely get more on a private sale. Webuycars offered me R160k on my Volvo ... but going through a Volvo on a trade for me R200k and they sold the car at R250k a few weeks later.

If private is too much hassle, why not consignment at a dealer? They'll take a small cut but you'll far more out
 
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