December 19, 2017 Family Finance 2

I have liked the KIA Soul for the most part.  My biggest gripe has been the 6 speed manual transmission.  It is geared so closely that I can literally go 1-2-3-4-6 and back again…Or i can skip any gear from 2-5.  It’s ridiculous and makes finding the right gear a pain in the ass.  I owe just about $4500 on the vehicle.  Right now it is running so poorly i cannot get anything in trade for it..the repairs(set to be performed on the 27th) are going to cost about $1800.  The $1800 has to occur because I am not going to be able to save enough for a 25% or more down payment on another vehicle.

My base income is about 4k/month(cleared) from work and $2800/month from SS.  That equates to $6800/month.  The reason for the large down payment are twofold:

  1.  Due to having really no money for the past 2.5 years my credit is shot.
  2. This job is a one year contract with an extension option for another if they get extended.  I have done this song and dance before so i am planning to have this vehicle paid off before nov of next year..or at least 90%.

My base budget for a replacement vehicle is v6(no more 4 bangers) and no smaller than a KIA Sportage….everything else is optional.  *UPDATE* Budget has changed.  the range is 16-30K.  The down payment is going to be a minimum of 5K.

I have been wondering do i pay off the KIA before I get the replacement vehicle or do i take the hit and roll the negative balance into another loan to get our from under the Soul?  My biggest thing is i have put nearly 3k into this engine and it continues to drain cash.  I am leaning towards getting it fixed ans saving up a ton of money over the next two months(Jan and Feb) and then offloading the Soul and picking up something else.  it will not be new as there is nothing within my price range.  Dodge journey and KIA Sedona fit my criteria nicely.  BTW the corolla is down with a blown radiator.  I have to get this KIA soul situation sorted before I will be able to afford tos tart work on the corolla.  Ideas?