Take it from me... Don't sell your MINI! [Or it may get totalled]
 

Hello all. I'm a 22 year old regretful former MINI owner. Regretful that I traded it in, of course. This is the story...

It was Summer of 2007. I had a 2000 Cadillac Catera. A lemon of all lemons. Not only was I putting all my extra money into repairs (with an extended warranty, even), but I was also upside down in the car. I went to a local GM dealer, as I was interested in the [then] new Poniac G5/Chevy Cobalt. I was young and dumb. Thought I might as well go into debt for something I thought would last. And convinced my father to cosign.

I got approved for a base model Cobalt that was priced at $17,000. But I did not want it. But I knew I wanted a manual coupe. The salesman took me to the next door Honda dealer. And there sat a 2003 Electric Blue MINI Cooper S with white mirrors and roof. All stock except the seats. Only 8800 miles. Remember, it was a four year old car by that point.

Took this puppy for a test drive. First time driving stick. And it was simple. I was hooked.

Ended up approved. Price tag was $22,000. They knocked off $2,000 and gave me retail price for my trade-in. And yes, I looked up retail price before even going in. Payments ended up at $485/mo.

I was in college and strapped for cash, but thought I could do it. I could not. Parents paid off the car as a college present. And they by no means are rich. I just had to pay them back $200/mo.

Fastforward to February of 2009. I've done a pulley reduction, nice wheels and tires, limo tint, resonator removal for that throaty sound... And traded it in for a 2003 Toyota Tacoma. Payments $172. And still paying my parents back for the MINI, $200/mo. And insurance went up. As did gas consumption.

Fastforward to September of 2009. Trade Tacoma in for 2007 Honda Fit. Don't even wanna talk about that.

Fastforward to November 2009. I sell the Fit. Take out $2,000 loan to cover negative equity. And buy a 1990 Jeep Cherokee for $1,500.

So I own m Jeep. But guess what... Still paying my parents $200/mo for my MINI. I owe $15,000 still. Now I'm 22. Married. Leaving August 23 to start basic training for the Army. And I am in debt $31,000. I should be debt free in four years. I've gone thru a LOT of financial counseling (wisebread.com, Dave Ramsey books, etc.). It all started when I got rid of the MINI. And I'm looking at where I'll be in four years. Probably deployed. But I will be wanting my MINI again.

Basically... You'll regret it. At least, that is, if you're an idiot like me! Don't get rid of your dream car! Whatever it is!

UPDATE Please go to post #30 to see what I found out about where my MINI ended up.

This one hits close to home! Money has been tight recently and I've been contemplating selling my 2006 MCS... Yet every time I get into my MINI after a long day at work it puts a smile on my face; perhaps I need to factor that into the monthly payment. Thanks for the story and good luck with the payments, family and military!

Yes car deals can go bad, and it seems like you found most of the ways to get in over your head, good luck in getting back to even.

My suggestion would be to stop flipping cars all-together. Every time you do, somebody has their hand out and since you're always upside down, you're in a weak position to be bargaining. Each transaction you've done probably made somebody a grand or two. Whatever you're driving, continue driving it until you are out of debt. Then maybe take a car loan on your next if you have the income to handle it, but better yet, save until you can pay cash.

- Mark

+1

I wish that finances were something taught in school. Sorry to see you had to learn your lesson the hard way. Keep working at it and remember this - those who do not remember their history are doomed to repeat it.

Not going to lie about it but joining the Army is not going to get you out of debt. Being that I am Navy(and would suggest this as a better choice) you make alright money. But seeing that you have had money issues in the past and seeing how military members spend money it will be very easy for you to fall into spending money faster then it comes in. I speak out of expierence watching my best friend spend money like it was on fire on cars. In 2 years he went through 4 cars, a new v6 mustang, a brand new Evo IX(which he totaled with me in the passenger seat) , a used S2K, and then he is working on another Mustang.

I did this with my Acura TL, but luckily I made out a bit better... I ended up selling it for $15k and bought my MCS for $8800...

The debt situation in this country is not good at all and is only getting worse. I feel your pain. Right now, you just need to stick with the plan and get out of debt ASAP!

If it helps at all it does get better as you get older, well if you work at it and aren't a bum. I was in a similar situation 8 years ago. I finally got a good stable job doing what I want to do and spent the first 2 years of that job paying off old debt, THEN ordered my MINI. I did learn my car lesson too, stopped going through cars once I got back into an '85 MR2. I still have it and I have the new MINI as well. Saved up for like 6 months to make a significant down payment and I expect to pay off the car early as well. Once you get into your 30's "stuff" gets less interesting when you realize the debt it often incurs. I don't expect to mod up my MINI at all, ordered a nice JCW and hope to keep it that way for a long time.

uRabbit, just know that there will be PLENTY of Minis to go around once you've paid off your debt. Also, since none of us says it enough, thanks for your service to the good ol' US of A... and good luck now that you've learned more lessons about "upside down" than anyone needs to know!

Basically, when what-you-want is not the same as what-you-can-afford, one of those needs to change, and debt isn't the equalizer!

Good luck!

Thank you for taking the time to share your story...many people would be "ashamed" to do so for fear of ridicule.

One thing I learned a long time ago...particularly with car loans is this:

Even after you pay-off the car, continue to make car payments to yourself.

:confused:

Let me explain:

Depending upon your financial obligations, if you're able to continue making the full car payment, make it to yourself by depositing it into an interest-bearing account. If not, do your best to make a 50% car payment to yourself.

1. If you ever need to make EMERGENCY repairs (not mods, but actual repairs) you have the money.

2. When it's time to buy a new vehicle, you'll have a sizable down-payment.

Saving money is probably one of the HARDEST habits to develop, but it is well worth it IMO.

Good luck!

Exactly what I'm doing, Sneezy. Since I got rid of my Honda, I've been paying my savings account. I'm going to take a month off of work before I ship out and will use some of this saved money to pay my monthly bills for that last month.

I've already got a budget and debt payoff plan set up. Should take 35.5 months to get all debt paid off. I'll be using my signing bonus for debt payoff. As well as $900/mo. And to make sure of this, I've set up automatic bill payments with all institutions I can. Otherwise, my wife will be writing checks or paying online.

I've been doing well with my budget for the past year and see no reason to waiver from that. I can see why I'd WANT to. My bonus could buy me a new motorcycle. Or a huge LED TV. Or, or, or. But I have everything I need. :)

And thank you. It's my honour to serve. I was so afraid I would not get in. Had to get a medical waiver.

lovethecorners: I remember that feeling... I remember getting in, feeling one with the car as I watched my cockpit gauges light up and hear the engine whine. I remember its short shifting transmission. I remember the growl of the exhaust. I remember every corner I took in that car and how if felt to be glued to the road.*I remember locking the doors after getting out and looking back at my MINI, so proud of my little rocket...

uRabbit,
Thank you for being you and feeling so proud to serve our country. It sounds like you've got a handle on things and will make it thru your financial hurdles.
I'm probably old enough to be your grandmother and a MINI has been a dream I've had for years and it just recently came true. I can say without doubt, that the feeling I have driving this little car, has been worth saving for.
Wishing you the very best.

Don't feel bad. Often 19=idiot regarding debt. Good news though, it won't happen again (unless you really are an idiot). Pay off all debt, save cash and buy things cash. All the interest will let you get more cool things. Just be patient in the beginning until you get a few grand in the bank for the fun things.

No debt for me for 18 years except for mortgage. Lots of toys and I know if I go to most stores, I can pay cash for anything they sell.

Thanks for your service to our country. Making mistakes is all about growing up. Obviously you're an intelligent chap since your post is very well written. Sounds to me like you've learned. I think you'll be fine.


Keep listening to Dave Ramsey.

Hey Rabbit.

Just keep your head down and don't think about all of this. Stay safe, and think about the future. It'll include Minis and mini Rabbits I hope.

Most of here have been where you are right now.

You will survive and you will prosper. The fact that you have parents who helped you speaks well for the stock you come from. Your willingness to serve speaks even louder.

For those of you who have never heard it, there's an old bicycle racer's saying -- "Never look UP a hill. If you do, you'll climb it twice, once in your mind, and once on the road."

Only climb your hills once Rabbit.

Godspeed and hurry home.

+1 :thumbsup:

HOOAH, uRabbit!

Stick hard to your plan. I've seen way too many military folks get into deep financial doo-doo -- mostly single folks though. Young person, living on base... Almost everything he earns is disposeable income, and he develops the habit of spending it all. Then comes marriage and kids, and he still has the bad spending habit.

rabbit
my son-in-law had a similar story but
one step at a time and he is now to the good financially, a home owner
and owns an 08 mustang GT (couldn't talk him into a MINI )
thanks for your service and i hope all works out well
boxcars

Well, shoot. There goes that plan! Just found out the new wife and I are pregnant. Wow... She will be due the month before I get back from AIT. Guess the whole plan for debt payoff goes out the door. How much do babies cost? Haha!

Congratulations!




It will all work out...it just may take a little bit longer than originally planned.

I remember seeing a billboard when I was younger (probably 10 years back) saying a child costs $180,000 from conception to 18 years old. I can't say how accurate that figure was, and much less how accurate it is now. But, they aren't cheap :eek2:

I've heard $10k per child per year, so that sounds about right.

And worth every penny - Congratulations!

Babies are not that expensive. As long as you don't fall into the trap of needing everything new, you can find about everything you need for pennies on the dollar ar garage sales - and usually in excellent condition. Unfortunately, babies need diapers, which can get a bit spendy (we used cloth for one of ours, but not the second...). You'll do fine, just keep your eyes on the ultimate goal. You're malso having kids at a good time, you'll still be "young" when they're grown.

Kids fit in a Mini just fine too... so save those pennies!

Shoot me a PM if you need baby clothes! I have about a million I am planning on taking to Goodwill soon...

Whatever they cost, there is nothing that will ever be better than the first time your child hugs you. From that point on, there is no cost, only earnings. You are truly blessed rabbit. Just stay safe and come home quickly.

I wouldn't trade all the Minis ever created for one minute of my daughter's childhhood.

You'll see.

Congrats young man.