Car broke down and it’ll cost more than what it’s worth. I also owe more than what’s it’s worth. What are my options?

Submitted by dmoralesrcc t3_z8891i in personalfinance

Car broke down just as I quit my previous job to prepare for upcoming classes. Ive been working doordash which pays more than my previous job however it’s gig work and as far as I know lenders don’t like that. I’m more than capable of paying a note however it doesn’t look like that on paper. However working doordash and going to school requires me to have a car, and I need a car ASAP. Don’t have enough savings for a down payment that would make a difference as well. Would I just have to bite the bullet and finance a reliable car at a terrible interest rate? My parents are able to co-sign however their credit isn’t good. My credit is very young so I’m not sure if having them co-sign would help or not. I’m able to bring in 4-6k a month through doordash full time. I appreciate any advice I can get

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93195 t1_iyab8cy wrote

Are you really making money on DoorDash? Your check is not all profit. It killed your current car that you already owe more than it’s worth, plus gas, plus maintenance, plus whatever else. Add all those costs up, you may find you’re not making anything at all.

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trilliumsummer t1_iybp0nk wrote

A good rule of thumb is to use the fed reimbursement rate on mileage for costs, but that doesn’t always work. But at least see what your income is after that. I don’t believe it includes paying for the car so subtract payments and see where you are.

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Werewolfdad t1_iyaagw0 wrote

> I’m able to bring in 4-6k a month through doordash full time

Where’d all that money go?

What’s wrong with the car?

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HeavySigh14 t1_iyaegrs wrote

You’re making $50k per year off of DoorDash? Did you put any money back for the taxes you’ll owe?

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dmoralesrcc OP t1_iyaan79 wrote

Paid off most of the debt I had. Motor is also shot in the car.

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Werewolfdad t1_iyaazx3 wrote

If you still owe on it, your only option will almost assuredly be putting a new engine in (well, a used engine most likely)

How under water on the car are you?

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dmoralesrcc OP t1_iyac0lc wrote

Car has 170k miles on it and it’s a 2017 Sonata. It was a rental car before my aunt took it in and then I took over the payments from my aunt (terrible idea I know). I didn’t start delivering until september of this year so all those miles were actually before doordash. Carmax appraises the car at 3k and I owe 10k.

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AlwaysBagHolding t1_iybahyo wrote

Check with multiple dealers and see if you’re eligible for the class action warranty extension on those cars. Hyundai was sued over that engine and extended the warranty out on it and replaces tons of them for free. People actually seek those out for sale with blown engines and haul them directly to the dealer to get them replaced for free after they buy it.

It’s not really something that’s advertised much on those.

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Werewolfdad t1_iyaea5x wrote

Is the loan in your name? If not, give it back to aunt. Sucks for her tho

Is the $3k value with a blown engine? Or is it with zero now? If zero, you’d need to buy a -$30k car to support that much negative equity.

And spending $30k to avoid a ~3-5k engine replacement is not a good idea

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goddrammit t1_iyad2zb wrote

Who told you the engine is toast?

Hyundai engines are mostly bulletproof. They do have some specific issues that can be expensive to remedy, but that doesn't mean that the engine is done for. And your car is a 2017. Hyundai has a 10 year, 100k mile warranty for that year, if I recall correctly.

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betterbub t1_iyaovev wrote

Hyundai engines are not bulletproof, OP has one of the Theta II engines

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whereyugoincityboy t1_iyb5tv0 wrote

Hyundai is not “killing it” as many of the car subs on here would have you think, they’ve consistently churned out absolutely godawful engines and keep having to do massive recalls on them. Toyota, they are not.

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Siphyre t1_iybdltk wrote

My brother is a mechanic. He said any car is good to get except BMW and Hyundai. They suck apparently.

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whereyugoincityboy t1_iydmpbv wrote

Even BMW is getting way better, the B58 I6 is one of those magic engines that pops up from time to time that’s just head and shoulders above everything else

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mbz321 t1_iybe4rm wrote

That only applies to the original purchaser. OP said it was a rental car, then the Aunt. I think subsequent owners only get 5 years.60k, which would probably put it out of warranty at this point.

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AlwaysBagHolding t1_iyc10hn wrote

Not for the Theta II engine that those had. There’s a class action lawsuit involving those engines and Hyundai extended the warranty regardless of if it’s the original owner or not. It’s likely you can find a dealer to replace it for free under that program. I wouldn’t give up if the first dealer you call says it’s out of warranty because they don’t really want to do it, but come with citations and force one to follow the lawsuit agreement.

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buildyourown t1_iybgku1 wrote

10yr, 100k mile means it expires at 100k miles or 10yrs, whichever comes first.

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goddrammit t1_iyacvox wrote

Can your parents afford to pay cash for a $2k car? That would be the best option.

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accountcg1234 t1_iyaqgfs wrote

Pay to fix it and run it for a few more years.

The cars only 5 years old

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dangitadam t1_iyashyy wrote

e-bikes are worth exploring. wayyyy cheaper. your city may provide a rebate. good exercise. don’t have to deal with traffic. seriously.

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lukkyfukky t1_iyae687 wrote

Can u afford both car payments tho? Bc you'll still be paying for the broke car

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visitor987 t1_iyb13jo wrote

First find a car you can afford then tow and trade in you car as the down payment at a car dealer Your aunt will need to be there and agree since the loan is still in her name. The car parts are still worth something maybe a lot in this market.

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BITTGS t1_iyb7aqb wrote

Think your best option is to fix it with the savings you have and a small personal loan. Used engine.

Reach out to your network, credit union, local church, etc to let them know what's going on with you.

Only problem with your gig work is it sounds like you haven't done it for at least 2 years.

It'll be tough to convince someone continuance of your income.

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shadracko t1_iybeksr wrote

Sounds like you just can't afford a car right now, OP. Get a bicycle, get a job that doesn't require a car, and re-visit the situation in a couple months.

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