How would you proceed?

[dingdong28]

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Hi everyone,

I need some advice about paying off debts. Since this pandemic started and a promotion nearly a year ago, I've been able to save up $15,000. I have an additional ~$7k in my checking account that will be transferred over to my savings in a few weeks after the monthly bills are pulled out. I have some money invested in the stock market at the moment. My goal is to have over $20,000 by the end of the year.

I need advice on what I should pay off first. I have student loans, a car payment, and a finance payment for work done on my house that I could pay off with my savings. Here's my thought process on what to pay off with my savings:

1. Car - I bought this car last year after my house was broken into and previous my car was stolen. I was expecting the police not to find my stolen car and purchased another one 4 weeks after the break in (2013 Hyundai Elantra with only 27k miles for $9k and many more updates than the stolen car; it seemed like a steal). Well to my luck, the stolen car was found 2 weeks after purchasing the new car. I was able to sell my old car to a family friend for $5,500 and figured I'll use that money to pay off this car. I have approximately $5,000 remaining to pay off. Monthly payment = $147 for 4 more years
2. Finance payment - Had basement waterproofing done on house. 10 year payment plan at $196/month. Have approximately $13k remaining balance.
3. Engagement ring - Whatever I have leftover will go towards an engagement ring + wedding band

When I did the math, it didn't make sense to pay off my student loans in one sum because if I pay off the car and finance payment, that's nearly $350/month coming back to me. If I paid off the loans in my name, it'll be $17,900 that'll bring back $174/month. If I pay off one loan on a parent plus loan, it'll be $12,000 that'll bring back approximately $150/month (this one I would have to investigate).

How would you attack these debts? I'm open to any and all advice

Thank you everyone

 

[mvenus929]

There are two general mentalities to paying off debt: the debt snowball and the debt avalanche.

The debt snowball is via Dave Ramsey, and states that you pay off your smallest loan, then roll that payment into your next smallest loan, and so forth until you pay off all your loans. It is based on a behavioral theory, so that you feel better as you get rid of the loans and have more incentive to keep paying off the loans. Using this philosophy, without knowing all the balances of your loan, you should 100% pay off your car payment, and then it's probably 50/50 between your basement loan and your student loan.

The debt avalanche is more mathematically based for saving money in the long run (not about freeing up money now, because you should be applying your extra funds to your other debt). You pay off the loan with the highest interest rate first, then apply your payment to the next highest interest rate, and so forth. You didn't provide enough information to determine which loans you should pay off with this method, though I suspect the Grad Plus loan is the highest interest loan you have.

Personally, I would get rid of the car loan first--and try to never have a car payment again. At that point, it'd be a matter as to what is easiest to lower the payment or which you can pay off soonest. If you have another plan for your student loans, then pay off your other debts. If you don't, I'd be inclined to get rid of them.

But I also only have student loan debt now, so take that for what it's worth.

 

[dpmd]

Need interest rates on your loans to make the best decision. The snowball is a trick for people too undisciplined to do the best thing which is pay the least amount of money possible. You have shown some discipline by saving money and buying an used car.

 

[dingdong28]

I don't remember getting notifications for your posts so I apologize for the delay.

Here's an awesome update: I've already surpassed my goal of $20k in savings. My new goal is to get as close to $30k by January, which seems like a stretch but doable with my current job situation (PM me for more info)

My car loan has a 12% interest rate (this is an easy choice to pay off first). I'm ashamed to admit that because my other car was at 4%. The waterproofing payment has a 9.99% interest rate. The parent plus loan was the highest interest rate for student loans at 7% I believe. The student loans in my name average out to 4-5%.

All debts I pay off that relieve monthly payments will be pushed over into my student loans since that's all I have left besides a mortgage, hence why I want to pay off some debts. I should add that my manager will give me a raise after I get my bachelors and MLS(ASCP) cert. I'm sitting at $58k/yr and she'll easily bump me up to $68k/yr. I'm going to ask for $70k/yr when the time comes.

After nearly paying off the older car, I know I never want to have a car payment ever again. I honestly wouldn't have one to this day if it weren't for my older getting stolen and presumably never seeing it again. I would have paid off the new loan sooner, but I'll generate penalty fees if I pay off the loan sooner than 1 year. November or December is the 1 year anniversary of the 1st payment on the new car.

 

[dpmd]

I don't remember getting notifications for your posts so I apologize for the delay.

Here's an awesome update: I've already surpassed my goal of $20k in savings. My new goal is to get as close to $30k by January, which seems like a stretch but doable with my current job situation (PM me for more info)

My car loan has a 12% interest rate (this is an easy choice to pay off first). I'm ashamed to admit that because my other car was at 4%. The waterproofing payment has a 9.99% interest rate. The parent plus loan was the highest interest rate for student loans at 7% I believe. The student loans in my name average out to 4-5%.

All debts I pay off that relieve monthly payments will be pushed over into my student loans since that's all I have left besides a mortgage, hence why I want to pay off some debts. I should add that my manager will give me a raise after I get my bachelors and MLS(ASCP) cert. I'm sitting at $58k/yr and she'll easily bump me up to $68k/yr. I'm going to ask for $70k/yr when the time comes.

After nearly paying off the older car, I know I never want to have a car payment ever again. I honestly wouldn't have one to this day if it weren't for my older getting stolen and presumably never seeing it again. I would have paid off the new loan sooner, but I'll generate penalty fees if I pay off the loan sooner than 1 year. November or December is the 1 year anniversary of the 1st payment on the new car.

Is that 20k just your emergency money or do you have an intended use? What sort of access to funds do you have for emergency (credit cards, helpful parents). If it is just emergency money and you have cards that you could use and parents to help you out I would say pay off the car the first day you cam do it penalty free and use the rest on the waterproofing and put those payments towards rebuilding your emergency fund. If you have little available credit and no family help then I would not be as aggressive with depleting your savings but would use half to 3/4 of it depending on your risk tolerance. Once the car and waterproofing are gone I would work on paying off the 7% plus loan and get an inexpensive ring (under a grand) because if she really loves you she will appreciate it even if it isn't pricey and with lots of debt it shouldn't be pricey. Just my opinion based on financial considerations.

 

[dingdong28]

Is that 20k just your emergency money or do you have an intended use? What sort of access to funds do you have for emergency (credit cards, helpful parents). If it is just emergency money and you have cards that you could use and parents to help you out I would say pay off the car the first day you cam do it penalty free and use the rest on the waterproofing and put those payments towards rebuilding your emergency fund. If you have little available credit and no family help then I would not be as aggressive with depleting your savings but would use half to 3/4 of it depending on your risk tolerance. Once the car and waterproofing are gone I would work on paying off the 7% plus loan and get an inexpensive ring (under a grand) because if she really loves you she will appreciate it even if it isn't pricey and with lots of debt it shouldn't be pricey. Just my opinion based on financial considerations.

The 20k is currently what I have saved up that will be used for debts/other things. I've been on my own financially since I was 16 when I got my first job. Of course my parents paid for bills and such, but everything I wanted to do for hobbies/sports had to come out of my own pocket. My dad was very thorough at teaching my sister and I the importance of budgeting our money. Once I went off to college and joined the military, I was completely on my own. If I was really stressed out about needing money, I would probably beg my family or close friends for something to get by. I'm very thankful it's never come down to that.

Once I figure out the best move for paying off debts and how much I have by the end of January, I will pay off whatever I can that'll bring my savings down to 3-5k for emergencies and whatnot. I'll continue to add to that if my checking account continues to grow. I usually keep a minimum of 3k in my checking account as well, so in reality I almost always have at least 6k in my accounts. Some of the money saved up will go towards future housing projects since some things need updated and we do plan on starting our family here until we're ready to move to better neighborhood.

 

[dpmd]

The 20k is currently what I have saved up that will be used for debts/other things. I've been on my own financially since I was 16 when I got my first job. Of course my parents paid for bills and such, but everything I wanted to do for hobbies/sports had to come out of my own pocket. My dad was very thorough at teaching my sister and I the importance of budgeting our money. Once I went off to college and joined the military, I was completely on my own. If I was really stressed out about needing money, I would probably beg my family or close friends for something to get by. I'm very thankful it's never come down to that.

Once I figure out the best move for paying off debts and how much I have by the end of January, I will pay off whatever I can that'll bring my savings down to 3-5k for emergencies and whatnot. I'll continue to add to that if my checking account continues to grow. I usually keep a minimum of 3k in my checking account as well, so in reality I almost always have at least 6k in my accounts. Some of the money saved up will go towards future housing projects since some things need updated and we do plan on starting our family here until we're ready to move to better neighborhood.

Then definitely car and waterproofing. Should do the waterproofing now and the car in december or january(you mentioned you can't prepay it until then) because if you pay the waterproofing now you still have 7k left and an extra 196 a month towards savings. If it is December that you can pay the car without penalty it drops you to 2k which is lower than you desire but you also mention that you expect to save another 10k by january so it will get replenished soon enough. Then after january you start sending the extra 350 per month to the plus loan plus whatever extra savings you can through at it each month (make sure the payments get applied correctly and are not entered as prepayment). No good reason to wait until you accumulate a payoff amount.

 

[dingdong28]

Then definitely car and waterproofing. Should do the waterproofing now and the car in december or january(you mentioned you can't prepay it until then) because if you pay the waterproofing now you still have 7k left and an extra 196 a month towards savings. If it is December that you can pay the car without penalty it drops you to 2k which is lower than you desire but you also mention that you expect to save another 10k by january so it will get replenished soon enough. Then after january you start sending the extra 350 per month to the plus loan plus whatever extra savings you can through at it each month (make sure the payments get applied correctly and are not entered as prepayment). No good reason to wait until you accumulate a payoff amount.

Thank you for your help with this. This was my plan all along, but wanted advice from different resources (this forum where many people take out huge loans, my best friend and another best friend who's an accountant).

What's your opinion on paying off certain debts too soon that negatively impacts one's credit score? My score's probably going to drop once I pay the car off. I know Dave Ramsey has said a credit score is a "I love debt" score. I don't plan on doing anything major applying/doing anything with credit anytime soon. In fact, I actually have my credit frozen in case someone tries to open things up in my name. I may apply for a credit card and pay for cheap things (gasoline, workout supplements, basically using it once a month) and pay it off within a month since I've never had a credit card before and can hopefully improve my credit over time.

 

[dpmd]

Thank you for your help with this. This was my plan all along, but wanted advice from different resources (this forum where many people take out huge loans, my best friend and another best friend who's an accountant).

What's your opinion on paying off certain debts too soon that negatively impacts one's credit score? My score's probably going to drop once I pay the car off. I know Dave Ramsey has said a credit score is a "I love debt" score. I don't plan on doing anything major applying/doing anything with credit anytime soon. In fact, I actually have my credit frozen in case someone tries to open things up in my name. I may apply for a credit card and pay for cheap things (gasoline, workout supplements, basically using it once a month) and pay it off within a month since I've never had a credit card before and can hopefully improve my credit over time.

I haven't seen that happen with my own credit score. I have paid off two mortgages early, a variety of student loans early, and I never carry a credit card balance except for when I have a introductory 0% rate. My score is excellent. I can't imagine paying off that car loan will drop your score enough to cost you what you would end up paying if you kept it. I can't comment on that specifically though because I have never had a car loan higher than 0.9% interest so I haven't paid one off early.

 

[dpmd]

Getting a credit card with a 0% intro rate and carrying a balance for the duration while you use the money you would have sent to it for something else is a dangerous game that I have played successfully many tinea before, but I don't advise other people try it unless they are very careful in their planning and will be able to pay it off before the rate increases.

 

[mvenus929]

Thank you for your help with this. This was my plan all along, but wanted advice from different resources (this forum where many people take out huge loans, my best friend and another best friend who's an accountant).

What's your opinion on paying off certain debts too soon that negatively impacts one's credit score? My score's probably going to drop once I pay the car off. I know Dave Ramsey has said a credit score is a "I love debt" score. I don't plan on doing anything major applying/doing anything with credit anytime soon. In fact, I actually have my credit frozen in case someone tries to open things up in my name. I may apply for a credit card and pay for cheap things (gasoline, workout supplements, basically using it once a month) and pay it off within a month since I've never had a credit card before and can hopefully improve my credit over time.

Your credit will only dip temporarily after paying off a loan, and should rebound in a few months. If you're not looking to take out any loans, this is a non-issue. The credit card may have a slightly worse rate or terms, but if you're paying it off every month, that doesn't matter for that either.

 

[FlowRate]

Engagement ring

Just wanted to say that this is a 100% personal thing and personally I find spending very large amounts of money on rocks that are only expensive because of artificial market forces to be poor financial sense. But only you know your future fiancee and how much he or she will care about showing off expensive rocks for a year or two.

and try to never have a car payment again

I think this is sound advice for financial beginners but with a 2% interest rate it's probably better to finance as long as you're putting the rest of that money to use in the market.

 

[abolt18]

Thank you for your help with this. This was my plan all along, but wanted advice from different resources (this forum where many people take out huge loans, my best friend and another best friend who's an accountant).

What's your opinion on paying off certain debts too soon that negatively impacts one's credit score? My score's probably going to drop once I pay the car off. I know Dave Ramsey has said a credit score is a "I love debt" score. I don't plan on doing anything major applying/doing anything with credit anytime soon. In fact, I actually have my credit frozen in case someone tries to open things up in my name. I may apply for a credit card and pay for cheap things (gasoline, workout supplements, basically using it once a month) and pay it off within a month since I've never had a credit card before and can hopefully improve my credit over time.

You should not let the credit score concerns keep you from paying off a loan.

I think the above advice about using your savings to pay off the waterproofing TODAY is best. Then you take that extra monthly money and throw it at the car (while continuing to save aggressively) and as soon as you're able, pay off the car. 12% interest rate? Dang!

You then put all that increased monthly $$$ available and throw it at the loans. It'll give you some serious momentum.

 

[dingdong28]

Here's another update and I hope I can get some likes (yup, I'm fishing for likes to get me to 100 ). It's a little lengthy, but I hope you enjoy the read:

1. I paid off the remaining balance of the waterproofing job about 45 minutes ago ($12,968.91). It has not been deducted from my account, but I'll keep checking to make sure the payment goes through. The next monthly payment would have been coming up in 6 days so once the finally payment is deducted, buh-bye stupid monthly payment!

2. I paid off the remaining outstanding balance to return to school and finish undergrad. I can officially register for classes for the 2021 spring semester. Yee-yee!

3. I was approved to refinance my home with a much lower interest rate. Our initial mortgage payment was $525/month in 2018, increased to $616/month in 2019 and back down to $556/month this year. The original loan was a conventional home loan with Citizens Bank with an interest rate of 4.5%. Our new loan will be with VA United Home Loans with an interest rate of 2.25%. Unfortunately, there were some hefty closing costs that will be added into the loan, but the new monthly payment will be $472.29. I don't expect it stay below $500/month, but it's still awesome to save a little more money each month.

4. The car is next. I won't be able to pay it off in full until 2021. @abolt18 I know 12% is horrendous and I took it on because I needed another car. I wish I would have done a more thorough search and bought something cheaper. For the record, I wanted an older Mercury Grand Marquis/Ford Crown Vic owned by an older couple that I probably would have been able to pay in cash, but I figured the Elantra was an absolute steal for the year, price, low mileage, and updates compared to the Civic. Also, thank you for all of your advice.

5. My military orders end soon and I'll finally be able to spend some time with my girlfriend, cats and her family for Thanksgiving. I'll also be able to see my family (and meet my baby niece) that I haven't seen in almost a year in New York! This is because of Miss Rona and not my orders, although I'm not looking forward to having a test done when I get there.

Thank you for everything!

 

[abolt18]

Here's another update and I hope I can get some likes (yup, I'm fishing for likes to get me to 100 [emoji23] ). It's a little lengthy, but I hope you enjoy the read:

1. I paid off the remaining balance of the waterproofing job about 45 minutes ago ($12,968.91). It has not been deducted from my account, but I'll keep checking to make sure the payment goes through. The next monthly payment would have been coming up in 6 days so once the finally payment is deducted, buh-bye stupid monthly payment!

2. I paid off the remaining outstanding balance to return to school and finish undergrad. I can officially register for classes for the 2021 spring semester. Yee-yee!

3. I was approved to refinance my home with a much lower interest rate. Our initial mortgage payment was $525/month in 2018, increased to $616/month in 2019 and back down to $556/month this year. The original loan was a conventional home loan with Citizens Bank with an interest rate of 4.5%. Our new loan will be with VA United Home Loans with an interest rate of 2.25%. Unfortunately, there were some hefty closing costs that will be added into the loan, but the new monthly payment will be $472.29. I don't expect it stay below $500/month, but it's still awesome to save a little more money each month.

4. The car is next. I won't be able to pay it off in full until 2021. @abolt18 I know 12% is horrendous and I took it on because I needed another car. I wish I would have done a more thorough search and bought something cheaper. For the record, I wanted an older Mercury Grand Marquis/Ford Crown Vic owned by an older couple that I probably would have been able to pay in cash, but I figured the Elantra was an absolute steal for the year, price, low mileage, and updates compared to the Civic. Also, thank you for all of your advice.

5. My military orders end soon and I'll finally be able to spend some time with my girlfriend, cats and her family for Thanksgiving. I'll also be able to see my family (and meet my baby niece) that I haven't seen in almost a year in New York! This is because of Miss Rona and not my orders, although I'm not looking forward to having a test done when I get there.

Thank you for everything!

Sounds like you have an extra $300++ a month to throw at that car loan! Congrats and keep it up!

 

[dpmd]

Sounds like you have an extra $300++ a month to throw at that car loan! Congrats and keep it up!

Stupid loan has a nearly usurious rate and a fricking early payment penalty.

 

[FlowRate]

I don't expect it stay below $500/month, but it's still awesome to save a little more money each month.

Specific reason you refinanced as another ARM instead of fixed rate or am I missing some other reason that you expect your payment to increase?

 

[dpmd]

Specific reason you refinanced as another ARM instead of fixed rate or am I missing some other reason that you expect your payment to increase?

I was wondering that as well. Unless he plans to pay the mortgage off soon seems risky to go ARM right now.

 

[dingdong28]

Specific reason you refinanced as another ARM instead of fixed rate or am I missing some other reason that you expect your payment to increase?

I was wondering that as well. Unless he plans to pay the mortgage off soon seems risky to go ARM right now.

Our current mortgage and this new one are fixed rate loans. The reason why our mortgage increased/decreased since we bought our house is due to the property taxes increasing/decreasing and caused our ESCROW account to deplete faster and our monthly payment to increase/decrease. This is included in our monthly payment instead of making one payment at some point in the year. I should have specified that in my posts, but I often forget that our monthly payment is principle/interest + other stuff.

Sorry for the confusion 🙂

 

[dingdong28]

Sounds like you have an extra $300++ a month to throw at that car loan! Congrats and keep it up!

Stupid loan has a nearly usurious rate and a fricking early payment penalty.

It's not nearly that high, but I'll be saving about $425/month once the new mortgage paperwork is complete and the car is officially paid off. The only thing remaining to pay off is the student loans and mortgage (obviously).

Yep, they're making sure they're getting their moneys worth out of me

 

[dpmd]

Our current mortgage and this new one are fixed rate loans. The reason why our mortgage increased/decreased since we bought our house is due to the property taxes increasing/decreasing and caused our ESCROW account to deplete faster and our monthly payment to increase/decrease. This is included in our monthly payment instead of making one payment at some point in the year. I should have specified that in my posts, but I often forget that our monthly payment is principle/interest + other stuff.

Sorry for the confusion 🙂

I see. That makes sense. Glad you didn't do an ARM.

 

[The White Coat Investor]

Hi everyone,

I need some advice about paying off debts. Since this pandemic started and a promotion nearly a year ago, I've been able to save up $15,000. I have an additional ~$7k in my checking account that will be transferred over to my savings in a few weeks after the monthly bills are pulled out. I have some money invested in the stock market at the moment. My goal is to have over $20,000 by the end of the year.

I need advice on what I should pay off first. I have student loans, a car payment, and a finance payment for work done on my house that I could pay off with my savings. Here's my thought process on what to pay off with my savings:

1. Car - I bought this car last year after my house was broken into and previous my car was stolen. I was expecting the police not to find my stolen car and purchased another one 4 weeks after the break in (2013 Hyundai Elantra with only 27k miles for $9k and many more updates than the stolen car; it seemed like a steal). Well to my luck, the stolen car was found 2 weeks after purchasing the new car. I was able to sell my old car to a family friend for $5,500 and figured I'll use that money to pay off this car. I have approximately $5,000 remaining to pay off. Monthly payment = $147 for 4 more years
2. Finance payment - Had basement waterproofing done on house. 10 year payment plan at $196/month. Have approximately $13k remaining balance.
3. Engagement ring - Whatever I have leftover will go towards an engagement ring + wedding band

When I did the math, it didn't make sense to pay off my student loans in one sum because if I pay off the car and finance payment, that's nearly $350/month coming back to me. If I paid off the loans in my name, it'll be $17,900 that'll bring back $174/month. If I pay off one loan on a parent plus loan, it'll be $12,000 that'll bring back approximately $150/month (this one I would have to investigate).

How would you attack these debts? I'm open to any and all advice

Thank you everyone

Not really enough info to give good advice, but I wouldn't have $15K in cash if I had a car loan, student loans, and the house repairs related debt. I also wouldn't be spending much more than the bare minimum. The key isn't which loan you pay off first, but the difference between what you earn and what you spend.

 

[dingdong28]

Not really enough info to give good advice, but I wouldn't have $15K in cash if I had a car loan, student loans, and the house repairs related debt. I also wouldn't be spending much more than the bare minimum. The key isn't which loan you pay off first, but the difference between what you earn and what you spend.

I was not expecting to be able to save up this much money this year. I'm very thankful that I've been able to. By paying all of this debt off now instead of slowly picking away at it over the years, I'm saving a lot more money from the high interest rates (which are in this thread somewhere). My student loan interest rates are a lot lower than these other payments. My thinking was to pay off what I could that'll net more money at the end of each month. By paying off the car and house repair loans, I'm bringing back $341/month to use for my student loans while still being able to save. Annually, I'm bringing back $4,092 that can be knock off a substantial amount of time off my student loans. Even though all of this expensive debt will be paid off, I'll still have a decent amount in my savings account for emergencies.

FYI to all others following the thread: I paid off the car as of yesterday!!!!! I was faced with a $145 penalty for paying it off too early. The contract states there's a penalty if you pay off the loan within the first year of the loan (actually get 2 penalties) which was $195 AND if you pay the loan before 6 months of the loan's maturity date. In my case, I would have had to wait until after the 6th month of the 4th year of the loan to not face the $145 penalty. Whatever, no skin off my back. I'm actually trading the car in for something 🤞 more reliable because my car's out of warranty and prone to engine failure (anybody reading this with a post 2011 Hyundai/Kia (not Genesis) vehicle read up on the problems with those cars) and I'm getting rid of it before I have a problem.

 

[FlowRate]

I'm actually trading the car in for something 🤞 more reliable because my car's out of warranty and prone to engine failure (anybody reading this with a post 2011 Hyundai/Kia (not Genesis) vehicle read up on the problems with those cars) and I'm getting rid of it before I have a problem.

Is this what you're referring to?: After Years Of Owner Anger And A Class Action, Kia Recalls Faulty Engines

Looks like the engine should be replaced free of charge if it does fail on you and there's a proactive recall in place so you can go ahead and get it fixed now.

You already know that you previously made a bunch of poor financial decisions prior to trying to turn things around more recently. Don't double down by trading in a vehicle to a dealer (getting hosed on trade in valuation and getting hosed again on dealer markup.)

Drive your car into the ground until you're out of your debt hole or until it needs a repair that would cost more than a decent replacement car.

 

[dingdong28]

Is this what you're referring to?: After Years Of Owner Anger And A Class Action, Kia Recalls Faulty Engines

Looks like the engine should be replaced free of charge if it does fail on you and there's a proactive recall in place so you can go ahead and get it fixed now.

You already know that you previously made a bunch of poor financial decisions prior to trying to turn things around more recently. Don't double down by trading in a vehicle to a dealer (getting hosed on trade in valuation and getting hosed again on dealer markup.)

Drive your car into the ground until you're out of your debt hole or until it needs a repair that would cost more than a decent replacement car.

Too bad the Elantra (Forte for Kia) wasn't part of the recall you referenced. Any Hyundai/Kia with the 2.0/2.4L engine will be replaced, but not the 1.8L Nu engines in the Elantra and Forte. I'll add that even though they "recalled" and "replaced" the engine (both the 1.8L Nu and 2.0/2.4L Theta/Theta II engines), the replaced engine still had the same issues.

2013 Hyundai Elantra Engine Problems | CarComplaints.com

The "tick" complained about is something I recently discovered. I've been paying very close attention to this car since I bought it last year. It's very faint when the car first starts up, but quiets down at operating temperature; that's how it all starts. This engine was recalled in Canada for cars that were also out of warranty, but not in the US. I've read that engines that were replaced also developed the infamous tick. Hyundai/Kia really dropped the ball on the cars produced after 2011. You may say "well you don't know if it'll happen to you," but I can assume it will because the VIN indicates the car was produced at the plant that caused the problems.

Trading the car into Carvana will actually net me more money because they're offering $8420 and the new car will cost a total of $7900. A replacement engine will cost $6k, something I don't want to fork over when the time comes. I also travel a lot for the military and don't need this car taking a dump in the middle of nowhere. With this new car, my gf's family knows a lot about GM cars and willing to help with future repairs.

Edit: Here's a brand new 2013 Elantra with only 67 miles. Skip to 3:02 to hear the piston slap/tick these cars infamously develop. The engines are loud, which is expected for a 4-cylinder car, but there's a VERY distinct tapping sound that makes this thing sound like a diesel engine. I'm not talking about the consistent chain sounding because that's the timing chain and fuel injectors. My car only has 39,000 miles and I can already hear a faint tap when I start it up.

2013 Hyundai Elantra Limited Start Up and Review 1.8 L 4-Cylinder - YouTube

 

[FlowRate]

Too bad the Elantra (Forte for Kia) wasn't part of the recall you referenced. Any Hyundai/Kia with the 2.0/2.4L engine will be replaced, but not the 1.8L Nu engines in the Elantra and Forte. I'll add that even though they "recalled" and "replaced" the engine (both the 1.8L Nu and 2.0/2.4L Theta/Theta II engines), the replaced engine still had the same issues.

2013 Hyundai Elantra Engine Problems | CarComplaints.com

The "tick" complained about is something I recently discovered. I've been paying very close attention to this car since I bought it last year. It's very faint when the car first starts up, but quiets down at operating temperature; that's how it all starts. This engine was recalled in Canada for cars that were also out of warranty, but not in the US. I've read that engines that were replaced also developed the infamous tick. Hyundai/Kia really dropped the ball on the cars produced after 2011. You may say "well you don't know if it'll happen to you," but I can assume it will because the VIN indicates the car was produced at the plant that caused the problems.

Trading the car into Carvana will actually net me more money because they're offering $8420 and the new car will cost a total of $7900. A replacement engine will cost $6k, something I don't want to fork over when the time comes. I also travel a lot for the military and don't need this car taking a dump in the middle of nowhere. With this new car, my gf's family knows a lot about GM cars and willing to help with future repairs.

Edit: Here's a brand new 2013 Elantra with only 67 miles. Skip to 3:02 to hear the piston slap/tick these cars infamously develop. The engines are loud, which is expected for a 4-cylinder car, but there's a VERY distinct tapping sound that makes this thing sound like a diesel engine. I'm not talking about the consistent chain sounding because that's the timing chain and fuel injectors. My car only has 39,000 miles and I can already hear a faint tap when I start it up.

2013 Hyundai Elantra Limited Start Up and Review 1.8 L 4-Cylinder - YouTube

My apologies for not giving you the benefit of the doubt, looks like this is a very considered and reasonable course of action!

 

[dingdong28]

My apologies for not giving you the benefit of the doubt, looks like this is a very considered and reasonable course of action!

No need for apologies good Sir/Ma'am! I should have specified what car I have instead of being so open for interpretation since there's a lot of Hyundai/Kia recalls going on.

I read sooo much about this car because I wanted to make sure I'm prepared before it happens. I wish I would have known before I bought the car. I could keep it and run it into the ground like you said (that's always my goal when I buy a car), but I know that won't be longer than a year or two. I'm not mechanically savvy enough to take the engine apart. bore out the cylinder walls and install oversized pistons instead of replacing with another faulty engine. On a funny note, I have been thinking about going to CC for automotive technology with the post 9/11 GI Bill benefits I recently earned to gain another skill/trade (if you consider working in the clinical lab a skill/trade). I know a bit about my cars and always wanted to work on them, but the mechanical side didn't always click when I was younger. It also explains why I only scored in the 53rd percentile on the mechanical portion of the ASVAB

If you do own a Hyundai/Kia with the problematic engines you sited (and anyone else with a Hyndai/Kia for that matter), you can tell your engine's been inspected, not inspected or inspected and the engine's been replaced by looking at your oil dipstick handle color:

Hyundai - Kia Engine Oil Dipsticks -- Orange vs Yellow Compared - - used on Sonata - YouTube
Hyundai/Kia Theta Engine (underhoodservice.com)

You know what's the worst part about this? The 2.4L problematic engine that was used for the Sonata (as well as many other Hyundai/Kia vehicles) had the highest number of reported incidents. This engine was still being produced and added to the 2019 Sonatas.....2019 AND YET THE ISSUE BEGAN IN 2011. What the eff Hyundai!?!?! The cars/engines produced in Korea aren't prone to engine failure (if your VIN starts with the number 5, be very cautious and keep up on your maintenance)