Thu 10 Dec, 2020 07:11 am
A recent storm in October came through my area and knocked a tree down on my truck. Insurance is covering it, but it was not totaled, so it is being repaired. The repair is going on two months with no end in sight because a key part is on backorder (COVID related). I now have to pay for a rental out of pocket since my 30 days of coverage from insurance is over. My wife does not work and we have two kids. I have managed finances somewhat well over the last few years and have both vehicles paid off and no credit card debt and a decent emergency fund.
My question concerns what to do next? I have a few options.
1. Keep getting a rental until truck is fixed. Rental cost will range from $700-900 per month (working from home is not an option nor is sharing my wife's vehicle)
2. Buy a clunker of a car that is depreciated and drive for the foreseeable future. Then sell it and attempt to cover most of my cost since it is already depreciated. (most likely would have to purchase private party and not through a dealer). I do not have any issues driving an old vehicle, but I do drive ~100 miles per day so there is always a question of reliability.
3. Purchase a newer used vehicle (small to midsize car). I would not likely be able to sell it soon to recover my money so I would have to keep for quite some time. I do drive alot so this would save miles on my truck and get better fuel mileage, but it is still more money than I would want to pay under normal circumstances.
Any thoughts? Thank you>
Request that the insurance company “total” the car.
By a somewhat reliable older used car, sell it when you get your car back. You can probably get something that works well enough for $3K. If you drive it for two months and sell it for $2k, you come out ahead, but you will likely be able to sell it for $3k since old cars don't really depreciate.