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Dave Says: When to Fix and When to Sell Your Car

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Dear Dave,

I have $2,400 in transmission repair work that needs to be made on my old truck, and I don’t have the money to pay for it. I tried to get a loan, but was turned down. I’m single and make $26,000 a year. Do you have any ideas?

Eric

Dear Eric,

As you probably know, I teach people not to borrow money. So, I’m glad you were turned down for the loan. That’s the last thing you need in your life right now, plus the terms of the loan would’ve been a rip-off.

My advice is to sell the truck as-is. You probably could still get between $500 and $1,000 for it. Combine that with as much money as you can save in the meantime. This could put you in a little beater that would last a while, then save up some more and get a nicer beater a few months down the road.

Sell the truck, save money and work your way up through some better vehicles. That’s what I had to do years ago in a very similar situation!

—Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

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