Should I sell my car for a down payment on a house?

The car is paid off and is a 2016 mazda3 with around 45k miles. I currently work at home and don't really drive anywhere. I have no other debt and looking to invest in a home since I currently rent. I appraised it with carvana for about 10k so that would get me to the 10% I want to put for the home with the other money I have in my savings. Thoughts?

6 Answers

Relevance
  • 4 weeks ago

    Most people find a car very handy from time to time. You know its history so keep it, and build up your cash by working.  Housing prices and interest rates should stay flat for a few years.

  • 1 month ago

    If you get rid of the car, how much will you be paying for Uber, etc.

    Will you purchase non-owner car insurance?  To cover you when you rent or drive someone else's car.

    How long is your job going to be remote?

  • fcas80
    Lv 7
    1 month ago

    You haven't talked about how well you can afford the house:  mortgage, insurance, utilities, repairs, taxes.  It sounds like you don't have the savings for the down payment, so if there is an emergency repair, you are going to have a problem.

    I suggest you save more until you can afford a down payment from savings AND have money left over.

  • 1 month ago

    There is nothing magic about owning a house. You get to have mortgage payments, insurance, property taxes and maintenance and upkeep to worry about. You really need to look at all of these costs and compare it to your current rent to see if you can really afford to buy a house. I personally think you are a few years away from being in the best position to own a home. Keep saving until you have at least the equivalent of 6 months of take home pay before you make any changes to your financial responsibilities. As many have found out in the current Covid crisis, having that saving account cushion is very, very important.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • Anonymous
    1 month ago

    Keep the car.   You may not work at home forever.   You obviously thought it was important enough to have a car that you bought one.   And you will lose a lot by selling it and then buying another in the future. 

    It shouldn't be hard for you to save up another 10k.    I mean if you can't, how will you afford to maintain a home?   Plan on one major project a year....deck, plumbing, electrical, roof, siding, fence, flooring, windows, masonry, cabinetry, kitchen counters, appliances, HVAC...the list is endless.    If you can't save up 10k each year without selling a car, your house is going to be in a constant state of decay.

    Are you already contributing enough to a retirement plan in addition to your savings for the house?    If not, you can't afford the house yet. 

  • Anonymous
    1 month ago

    Are you going to go without a car? Walk to the grocery store?

Still have questions? Get answers by asking now.