By: Revanche

Selling short?

November 20, 2008

For the past two days, I’ve been mulling over the idea of selling the truck at a much lower price than I had originally expected. Months ago, the plan was to recoup the money I had to put into the loan out of my own pocket, which wasn’t an unreasonable amount, it was well in line with Kelley Blue Book value. Of course, that was before gas prices went insane, the entire economy bit the dust and unemployment reached a record high.

After months of listing the truck with so few nibbles, I had written it off as an expense for another several months: I’d pay it off and hold onto it until the market was in better shape. It required too much energy during a stressful time. My rationale was that I was responsible for the loan anyway and I preferred not to sell at a loss.

Now, though, my higher priority is to reduce monthly expenses further, and possessions to an absolute minimum. Holding onto an unused vehicle for more than a few months just doesn’t work for me. I don’t know where I’ll be located or relocating, or when, but the fewer loose ends left to tie up when I know, the better. This means I have to accept a certain amount of loss for the convenience of selling to a vehicle dealer instead of a private party, ending the monthly loan and minimal insurance payments, and striking another thing-to-take-care-of off the list.

The question is, how much loss am I willing to accept? It’s not like the truck is a commodity that will completely lose value over time, it’s a good vehicle with low mileage.

KBB value is only half of what it was six months ago, just to give you an idea of where the market value has dropped.

Even at half the once-estimated sale price (or should I say, if I get at least half that amount?), I should still be able to pay off the loan and have some left over, which reduces the sting a little. Not a whole lot, but a little.

By the way, looking at previous KBB values? I totally suck for being lazy and not selling earlier. 🙁

2 Responses to “Selling short?”

  1. Unfortunately the truck is only worth what people are willing to pay for it. It sucks that you won’t get the amount you paid, but if it’s costing you anything, then you’re worse off in the long run than if you just sold it now.

    The best news is that you can still make a little bit of money if you sell it! I say go for it!

  2. Revanche says:

    paranoidasteroid: I know 🙁 Either way, I’m losing money, it’s just how much I’m willing to lose.

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