Any advice would be food for thought for me!!!
I'm a single working mom of 3 wonderful kiddos.
Congrats on getting out of debt!!! Hate to state the obvious- but why not get the a/c and radio fixed? Maybe it just needs recharged? I don't think 130,000 really qualifies as high mileage. But of course you will have to have a repair fund for it.
eta- DH and I were just talking about this today. There are many deals to be had on vehicles. Our target price is less than 10 cents/mile for the purchase price.
Iowaorganic- mama to DD (1/5/06), DS1 (4/9/07), DS2 (1/22/09), DS3 (12/10/10), DD2 (7/6/12) and a new kid due in early 2014
I think I would definitely investigate getting the a/c fixed before I sold it. Even if you drove it for another 6 months you could put the amount of money you would spend on a car loan in the bank and have it as a down payment later on. And, depending on how much you drive, that car could go another one or two years with decent maintenance. My corollla is paid off and has 120000 miles on it or so, but I figure on another two years at least. But I set aside 250 a month into a car fund. Even if it died tomorrow, I could at least cough up $3000 or so in a down payment. I bet you could get a replacement radio quite cheap as well, maybe even get a used one. Plus you won't have to pay so much in car insurance.
I would never give a teen a new/slightly new car.
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