Recent Divine Discussions

Monday, February 25, 2008

Tax Man Delivereth

My tax refund was deposited into my checking account on Friday. It was like Christmas all over again. For like half a second.....then my mind started going in overdrive on what I was going to do with the money. My refund totaled $2629.

Here is what I have done with the money so far:

  • - $500 to my Emergency Fund (bringing the total to $3555.81)
  • - $699 to pay off one of my credit cards
  • - $40 to my FCU savings
  • - $100 on me and sweet pea
    • - $20 on books
    • - $40 on movies
    • - $40 at Burlington Coat Factory

That leaves me with $1290. I was going to pay off my Discover card with that but I am holding off on that until I figure out what I am going to do about my car.
Single Ma gave me some good advice on a post I did last week on my car situation. I currently drive a 2006 Honda CRV and my monthly car note is $532. I know right!! I would like to trade in my car for something reliable yet less expensive. I am looking into two different options at the moment:

1. Sell my car privately. Pay off the difference, which should be a little under $1K. And then buy a used reliable car for under $8000.

2. Trade-in my car. Buy a used reliable car and run the possibility of coming out upside down on my loan (under $10K total).

Of course the first option is the most ideal for me. I need to call Statefarm (car loan folks) and find out what restrictions, if any, that I have when it comes to selling my car. Once I have spoken to them, then I will research the different mediums in which to sell my car through (e.g. autotrader, autohopper, newspaper). I will also need to take my car in and get it checked to make sure everything is running smoothly. Once I get my car listed, it will be the waiting game. A lot of inquiries, people coming to look at and test drive the car. Ugh! I am not looking forward to that. Anyways, if when I do sell the car (gotta be positive) I will pay off the difference of my loan balance with the remainder of my tax refund.

If this doesn't work there is always plan B (trade-in) or plan C which is to just ride out what I got now and use the remainder of my refund to pay the Discover card.

I may just go ahead and pay off my Discover card and still do plan A. I can then pay the difference off with part of my emergency fund. I dunno. I am sleepy and all this thinking is making my eye twitch.

Decisions, decisions...........


fandd said...

Getting up from under that car loan would relieve a serious recurring bill. I don't know about an $800 reliable used car, though. Can you get something reliable that cheap? How far do you usually drive in a day?

Dimples said...

@ fandd

It sure would. I hope I can do it. I said $8000. Add one more zero. I have been looking at some of the carss at CarMax and yeah I can definitely get a good car for around $8K. If I go to work I drive about 110 miles a day.

fandd said...

Ahhhh, my bad. That's what I get for posting too early in the morning. Yep, $8,000 will get you a nice, reliable car.