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Discussion Starter · #1 ·
My 2003 passat variant was purchased during a rough financial time in our lives and with the help of a great mom, she put the car in her name for us. At the time the car was a must, we only had a gti and our third kid was here and it was getting impossible to fit all three car seats, comfortably, in the gti. I looked into the passat wagon and fell in love with it, when i went for financing it was less then good. My mom offered to let us use her name and credit as long as she was not financially responsible. We agreed and she signed the contract and till this day she never payed a cent towards the car. She passed away on Nov 19 and now the insurance company is after me to get the car in my name. Here is the dilemma I still owe on the car and it requires taking out a loan to cover the remainder. The down side is, it is used car financing and I have not seen the numbers yet, but it is going to blow. I have three options 1. Pay the car off with what little money my mom has left to us 2. finance the remainder 3. Use it as a trade and just get into a new car. Problem is I love the car, but cannot bear to get raped on a used car loan and I cannot bear to pay it off with money that I would rather start college funds for my kids. What would you guys/gals do??????

Michael
 

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I vote #1 if you can, or at the very least pay as much as you can before #2. It's going to be easier to finding money for #3, if you don't have as large auto loan to pay off.
 

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I think you answered your own question. How 'bout a 2001.5 wagon?

If I were in your shoes and I spent the money left on paying off the car, I would feel way too emotionally attached to it. I would feel better knowing that it's going towards my future generation's education.

What if you pay the car off and then some asshat totals your car? Wouldn't you feel like shit?
 

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Michael - I am truly sorry to hear that you lost your Mother.
If you don't want to buy it out (option 1), or financed used (option 2), you are left with option 3.
However, if your finances have recovered a bit, perhaps there is option 4. Find a newer CPOed 2004 or 2005 and go with that?
Stewart
 

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Vote #1... Pay off the car with the money and continue to make your "car payment" to your kids college fund each month. You will be much further ahead.
 

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If you sold the car and got a new car, I'll bet that'd put you more in the hole long term that paying back what you owe in a lump sum.
Pay it off and put in what you'd pay on a new car in the college fund.
 

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Accounting 101 - Cash Flow.
Chapter 14 - You never pay yourself back...
Placing that money in your childrens education fund is a lasting tribute.
Listen to your heart, not to me.
 

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Discussion Starter · #10 ·
I like the suggestion about paying it off and making a payment to the kids college fund. No more mods Noooooooooooooooooooooo. I can never leave my hands off things. I officially hate being a grown up!!!!!!!!!!!!

Michael
 

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Michael, ultimately it is your call to make.
Do what you think is best for your family under the circumstances.
Forget about any car - it will be long gone years from now, and no one will care.
Being grown up isn't fun sometimes.
Peace be with you.

Stewart
 

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Vote #1... Pay off the car with the money and continue to make your "car payment" to your kids college fund each month. You will be much further ahead.
Sorry to hear about your recent loss.

I agree with the above.

Don't get into a new car, you'll avoid the sudden depreciation that every new car experiences the moment you drive it off the dealer's lot.

Since you know the history of the car you already have, there is much less chance of you getting burned by surprises from changing vehicles. A used car could be packing a nasty surprise, and any dealer is only looking to make a big mark-up on a used car.

We have two children (7 & 4 yrs old) and I can honestly say that they have gotten in the way of me doing everything that I wanted to do with my car (I have stuff in the garage still waiting to be put on the car :banghead: ). That being said, I can also say that I really do enjoy my car everytime I drive it. I also plan to get myself a nice four-wheeled 'toy' when the kids are "out of the nest".

So enjoy your kids while they are still small. Try to enjoy and appreciate your car the way it is now. Fantasize about what your next car might be - hopefully, you can aim for a replacement down the road that will satisfy you without breaking the bank.

I don't know what kind of mileage you put on it each year, but hopefully, the car will last you for enough additional years that you can afford to 'upgrade' when you are done with it.

Good luck.
 

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sorry to hear about your loss. It isnt right that you should have to worry about this. I say go with option 1. When you dont have a car payment you will have plenty of time to save for the young ones education.
 

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This is a tough one. On the one hand, you have money that you could pay off your car with. On the other hand, I guarantee that you'll get hit with high repair bills in a few years, if not sooner. You might be better off trading the car for a nice one- or two-year old Mazda6 with low mileage (which will probably run for ten years with almost no repairs) and then throw your inheritance at it to bring down the payments to something bearable. It's important, as other people have mentioned, to make sure you can collect on the car if it gets wrecked, and a newer car (but not brand-new) is the best way to do that.
 

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Hi Michael,

I tend to side with StewartGLX on this...besides you are asking a bunch of Passat enthusiasts here about more serious financial advice. Perhaps there are financial advisors on here...but I would still ask a more objective third party who doesn't have an emotional attachment to a Passat!;)

Saving for your child's education is perhaps more important than the car you're driving (right now if money is tight.) I also believe in not having debt if you can avoid it. So, my opinion is to get yourself into a car that you can afford. Putting aside money for savings (whether for a college fund or a new car - read; Passat) is traditionally difficult for most people and is the last thing to get attention after all th bills are paid - meaning it often gets overlooked or neglected. If your mom left a little starter for you, I would be inclined to leave it alone with the kids in mind. A trade-in could get you something that would be just right and, perhaps more important, finacially feasible.:thumbup:

FWIW - best of luck.

Kevin
 

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you never mentioned how much money we're talking about to pay off and the ages of the children.
 

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Paying off the car just makes the most sense to me.

I understand wanting to set up an education fund, but:

The money obviously isn't enough to send all your kids to college, so you'll still need to come up with more money when they go, and if you have poor credit still because of the re-financed car and whatnot, other loans and such will be hard to get.

Pay off the car, start putting some money away for the kids (every bit helps), and then once it is actually time for a new vehicle, you'll be in a much better financial situation.

Thinking about the future is a great thing - but don't let it rule the present. Paying off your car, having no car payments, and bettering your credit rating will do more for you and your family in the long run.
 

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As far as the good credit part goes?
It was financed in his late Mother's name.
Paying it off will do nothing for his credit, though shedding debt is never a bad idea.
The time value of money is also an issue as far as making payments, saving, etc. - time is your friend early on.
Does PA have a pre-paid college tuition plan?
You can get in early for cheaper, and are protected against increases in tuition.
 
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