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Just blew all our cash on fellowship interviews, wife\'s car is now dead. Help!

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  • #31
    @matamua

    That’s very tough and I hope it turns out ok. Just finance a car. Lease a Civic or something and don’t sweat it.

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    • #32




      I am well versed in the necessity of an emergency fund and do not have one because of some pretty extraordinary circumstances, you know, like my son being sick with cancer.
      Click to expand...


      Oh, gosh, I am so very sorry. Praying for you and your family.
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #33
        1) Why does your wife need a car?

        2) On days she needs it, can you share?

        3) As others said, if you really must have another car, just go get a supercheap lease on a new car.  Think Honda fit, civic, accord, under $200 a month.  Or better yet, lease one of those EVs for like $80 a month if you can find a good deal in your area.

        Zero options, just get that payment as low as possible.  You're paying for the use of a car, to rent a car, not to own the car.  All the people who advocate renting vs buying on a house for some reason shudder at the thought of a car lease, even a super cheap lease.

        A used car purchase puts you in the same boat of not being able to afford repairs.  A lease on a used car sounds horrible as you will be liable for repairs and you don't even own it.

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        • #34


          I am well versed in the necessity of an emergency fund and do not have one because of some pretty extraordinary circumstances, you know, like my son being sick with cancer.
          Click to expand...


          I am genuinely sorry to hear that.  

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          • #35
            Yeah, I thought it was pretty clear what happened to the emergency fund. Hope your son is doing well.

             

            Add me to the list of people who would recommend you lease. If, of course, (you've made it pretty clear IMO) that biking, ride sharing, public transport, etc. aren't options and the vehicle is needed. Primarily for the reason that was brought up by someone else...buying used still puts you on the hook for repair costs. A zero down, sub $200 /mo lease for 3 years seems like a small price to pay in order to avoid going into more debt and the possibility of unforeseen repair costs that buying used (even certified used) may bring.

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            • #36
              How do you have a mortgage?  230k house with 135k mortgage... ?  I would sell the house.. the market is good and then you'll have plenty to buy a used car, keep an emergency fund, maybe payoff some of the smaller loans, rent an inexpensive apartment closer to work where you can bike, and live like a resident for fellowship.  Plus its one less monthly payment to make.   Good luck!

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              • #37
                I know this is a forum that tends towards FIRE, but jeez, some of these replies....

                You have a sick kid, reasonable net worth (-200k?), you've finished residency (so presumably you would have the ability to drop the fellowship and work, if REALLY needed), and you've matched a competitive fellowship (so presumably you are expecting a quite high income in the near future). By any measure, you've been highly responsible and successful. Short of someone else paying for your med school (family, military), it's almost inconceivable that anyone could be doing any better financially than you are, at this point in your career.

                Some of you want him to bike to work? I can imagine very few scenarios where that doesn't introduce a level of risk that is worthwhile.

                OP, go lease yourself a new Tesla or something. Maybe I'm not being entirely serious, but really, aren't all these options just quibbling about pennies? Do what is convenient and low-stress for you.

                 

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                • #38
                   




                  I know this is a forum that tends towards FIRE, but jeez, some of these replies….

                  You have a sick kid, reasonable net worth (-200k?), you’ve finished residency (so presumably you would have the ability to drop the fellowship and work, if REALLY needed), and you’ve matched a competitive fellowship (so presumably you are expecting a quite high income in the near future). By any measure, you’ve been highly responsible and successful. Short of someone else paying for your med school (family, military), it’s almost inconceivable that anyone could be doing any better financially than you are, at this point in your career.

                  Some of you want him to bike to work? I can imagine very few scenarios where that doesn’t introduce a level of risk that is worthwhile.

                  OP, go lease yourself a new Tesla or something. Maybe I’m not being entirely serious, but really, aren’t all these options just quibbling about pennies? Do what is convenient and low-stress for you.

                   
                  Click to expand...


                  +1 IMO biking to work is just not an option, also IMO it's an irresponsible option for a high income professional, particularly a sole breadwinner for needy family, considering the risk.  Also stuff like selling the house, etc, is just too drastic over such a small issue (that will only be an issue for the next ~13mos).

                  It sounds like the monthly cash flow is an issue for him so something nice is probably out.  Even a $200/mo lease might be a stressor on the family cash flow.  However I think on $5,000/mo income he should be able to find a couple hundred bucks somewhere to lease a car (Fit, Sentra, Elantra, Civic, misc GM product, etc).  With that credit score he should be eligible for all incentives and a zero down sub $200 lease should be easily achievable.

                  Like you said it's just one year on the way to that attending-level income, a lease is just a short-term bandaid to get him there.  You can even trade it in before it's up.  So what if he spends a couple grand on a lease, BFD.

                   

                   

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                  • #39
                    Sorry to hear about that. If you are 2 squirrels who have had an encounter with a cactus (my attempt at humour with the emoticons), the main thing is you still have your nuts. You are still doing better than the average resident despite the adversity.

                    What I would find concerning is the lack of emergency funds in case you have another unexpected cactus pop up on your path. If you get a car lease, does it affect your ability to get a heloc ? If so it might be better to get a heloc for 25k to access in terms of emergency funding and see if you can still get a lease. That is assuming you are squirrels and continue squirrel like spending habits. I've never gotten a car lease or a heloc so I have no idea how these things work in practice or whether it would be best for you. If things are dire, have you also thought about a gofundme page ?

                    Best wishes in finding a solution.

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                    • #40
                      I am really sorry to hear about your child, and no doubt all of this is stressful to you,  your wife, and your family.  Can you afford a cheap car lease? Would the payment be stressful?... if not, go for the lease so that you do not have the stressor Of potential used car break downs on your hands, and it sounds like then one stressor would be off of your plate for the next few months.

                      It seems like the most important thing to do would be to minimize stress as much as possible for the next year, with the priorities on your child getting better, and you and your spouse being able to make it through the last year of training and have the emotional reserves to help your child(ren) through this illness, and to somehow bring some joy and smiles and cheer to your days through all of this.

                       

                      it is an interesting idea, to sell the house, if you can get a lot of equity out of it and rent for the remaining year you have left there, especially if you are moving for fellowship anyways. However, moving is stressful and if it's too stressful for you or your family it may not be worth it.

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                      • #41
                        Can your wife Uber or Lyft on the weekends if you’re around for childcare? It’s basically $20/hr. Only problem is your current vehicle may not cut it. But if you lease and and utilize the Uber funds to pay for said newer car it could work?

                        Have you ever tried crowd funding? If not for your car, but your son’s medical bills?

                        Best of luck with fellowship match and life. Also best of luck with your son’s health.

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                        • #42
                          You should be able to get financing for a used Korean or Japanese car. Koreans especially seem to punch above their weight for price, even up to midsize cars like the Hyundai Sonata. Car loans have been given to people in even worse financial situations than you, believe it or not. A high interest rate on a low amount is still a low amount. A car 5 years old or older should have a fairly gentle depreciation curve over the next few years.

                          Debt to income ratio is figured by total monthly payment (as queried from the credit report, with maybe some more digging by the lender based on circumstances) divided by total gross monthly income. It's not total owed. For mortgages, lenders often approve up to 43%; Idk if that differs for cars. So if you make $60,000/year ($5,000/mo) gross, then you can borrow up to having monthly payments of $2,150. Obv you'd never want it to be that high, but this is what people can be approved for. For example, a $10,000 car financed over 60 months at 5% is $188.71.

                          Take that for what it's worth, but I think this could possibly be at least a minimally acceptable solution for you. No one wants to consider debt-on-debt, I know. I def don't...but this is where we find ourselves sometimes.

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                          • #43
                            As long as you do everything else correctly, leasing an inexpensive new car or purchasing a decent used car is not going to make a difference in 5-10 years. The nice thing a bout a lease in your situation is that your transportation expenses are known and pretty much capped, and that car should be reliable - no small concern with our line of work and a family to haul around.

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