Hello everyone! I would love your help thinking through this.
I currently own two vehicles outright, with no loans or leases on either.
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Vehicle 1: A 2016 Ford Escape with about 30k miles. I inherited it from my grandmother who passed away. None of my younger cousins wanted it, so I agreed to take possession. It’s in great shape mechanically and is worth $14.5K according to Carvana.
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Vehicle 2: A 2010 Toyota Prius with about 280k miles. It still gets about 50mpg on the highway, but it’s in rough cosmetic shape. It needs new tires, the windshield is cracked, and the exterior is dinged up from 14 years of use. I’ve taken good care of it, but the traction battery seems to be failing, and it’s only getting around 35mpg in the city.
My situation:
- My commute is 60 miles per day, with a lot of traffic, which the Prius doesn’t handle well due to the battery. The Prius only needs filling up once every two working weeks, while the Ford, at 24mpg, needs filling up once a week.
- My partner uses public transit to commute, so I’m the primary driver.
- We’re paying insurance for both vehicles, which isn’t ideal since I only use one at a time.
Options I’m considering:
- Sell both vehicles and buy a single newer, fuel-efficient used vehicle for cash.
- Sell the Ford, fix up the Prius (new battery, tires, windshield), and drive it until it can no longer run.
- Sell the Prius, keep the Ford, and accept the higher fuel costs, knowing I’m not making any car payments.
Annual Costs:
- Ford: $3,695 (gas, insurance, maintenance, registration)
- Prius: $6,058 (including the cost of new battery, tires, and windshield for the first year)
I’ve been unable to figure out which option makes the most financial sense. Please advise!