Should I sell back the car I bought just 3 months ago?

Question

I graduated college in May 2008. I decided to purchase a Mercedes-Benz E500 2003. I fell in love with the car! I use to drive a 2000 Honda Civic which i was extremely fed up with. I tried selling the Civic after buying the Benz, but no luck. Soon after graduation, I landed a great job about 23 miles away from home. When I bought the Benz, I didn't do my research and I didn't know it practically eats gas! It has terrible mileage and to top it off, prices went out the roof this Summer. I had to keep the Civic. Now I drive the Civic about 46 miles a day and my poor Benz is parked in my driveway. What to do? Should I sell both cars and get a different car which has better mileage and maybe newer? I owe about $23,000 on the benz and its trade in value is about $16,000. The civic's trade in value is about $4,500. I'd hate to lose so much money, but I guess I really made a bad decision about jumping into buying the Benz because it looks gorgeous. Any advice will be appreciated. Thanks.

Answer 1

A person who buys a Mercedes-Benz is probably not very concerned with the price of gas, but is probably looking at a new model, instead of a 6 year old model. So, you will mbe challenged selling it. Meanwhile the car sits there losing value. I say, advertise on the web and in the papers. There is a buyer somewhere for every car.

I always lose my shirt on a trade-in. so even though that is the easiest way to get rid of a vehicle, it costs alot. You may wish to take it to CarMax if there is one in your area. They pay a little bit more than a used car manager at a new car dealer.

I am surprized to hear you were "fed up" with your Civic. Every other Civic owner I have spoken with is very happy with the car. I just purchased a 2008 Civic LE for my wife and she is very pleased with it. She got 33 MPG on the first tankful commuting in heavy traffic. You should be successful selling your Civic these days with $4/gallon gas. Just remember, it is a 9 year old car and so you should expect less than half of what you paid for it originally.

Answer 2

You have to weigh eating the cost of keeping two cars or trading in one or both and still having to pay the remaining loan amount of the Benz while paying on another car.

See what stupid impulse purchases get you into, people?

Learn from this example!

Answer 3

Keep both cars if you are financially able to. gas prices will eventually go back down (hopefully). And you will regret getting rid of your mercedes. The money you would save in gas will not amount to the money you would lose if you trade your car in while owing $23,000. Keep both cars and possibly drive your civic to work and your mercedes as a leisure car. You could get a lower insurance rate as well if you drop your mercedes to only leisure. hope this helps.  

Answer 4

If i was in your shoes i would maybe sell both cars and get a good economical car which is cheap on gas.