I have 5,000 and a two cars I could sell in order to buy a bigger car. Which option should I go with?

Question

I must get a new car becaue I'm expecting a baby, and I need a bigger vehicle that can handle 2 car seats, luggage, and a Golden Retriever. But I only need this big car for trips, maybe once a month.

Option #1:

Buy an SUV for $5,000 or less. Keep the little car. Sell the other car. Then I would have $4,000 extra in the bank to use for other needs. I've noticed many of them with less than 130,000 miles are dropping in price because of poor gas milage. But gas milage doesn't make a difference to me because I won't need to drive the vehicle at all except maybe once a month.

Option #2:

Buy an SUV or wagon for $10,000. I'd sell the extra car and keep the little car, but would have no extra money in the bank for other needs.

Option #3: I could sell both cars, and buy a nicer SUV or wagon for $15,000. Insurance would be less, maintance would presumably be less, but we'd use this car for everything, it being our only mode of transportation.

Answer 1

Option 1.

If you have an older SUV or wagon you pay less on insurance premiums and you won't care when the kids spill baby formula over the seats. Since you are using it for infrequent travel, you can really take advantage of the push for better fuel economy. The little car can take care of your needs.

Option 2 uses up ALL your cash, which is never good when you have a baby on the way AND you're buying a used car.

Option 3 you mention yourself has a big IF.... presumably less expensive, maintenence costs will still be very high. Plus, if that car wrecks, or breaks down, you're Sh Outta Luck for everything.  

Answer 2

I would go for option 2 or 3 if it were me.

GREAT JOB!  Paying cash for a car intead of financing it shows smart financial sense!!

Good Luck and congrats on the baby!

Answer 3

i think the 3

Answer 4

i wouldn't do any of those if you only need the bigger vehicle once a month why not sell one of your vehicles and buy lots of baby stuff. also you could rent a suv from enterprise once a month they are really great and they bring the car to you know it sounds corny but it is just like the commercial