What do you think about this idea?

iVillage Member
Registered: 02-11-2006
What do you think about this idea?
7
Sat, 07-12-2008 - 11:16am

Hi everyone,

I have been thinking of ways to improve our debt situation and raise our credit scores, and I'm wondering if this idea I have makes any sense. We currently have 2 vehicles, a 2000 Toyota Sienna mini van and a 1997 Ford Escort. DH drives the Escort, which up until this past week was just to and from the train station (5 miles each way). Last week he got a promotion at his job, which will mean a good hefty raise, but the catch is he will work in the New Jersey office 3-4 days a week (we live in IL). So now he needs to drive back and forth to the airport each week (I don't know how many miles, takes about an hour with light traffic). Does it make any sense to sell his car and have him take a car service to the airport? It costs about $50 to park at the airport while he's away. It costs about $45 each way for a car service. We would eliminate gas and maintenance on his car, and pay for transportation but not parking. His car doesn't run great and he is not mechanically inclined in any way! I'm thinking we can use whatever small amount we get for his car to pay toward cc debt. I really want to get our two smallest balances paid off ASAP and hopefully raise our credit scores before we need to buy another vehicle. My score is 755, his is 744, which I guess is just average. We have four open credit cards with balances, a home loan, loan on the van, and our mortgage. Lots and lots of debt. I really want to get focused and serious, especially if he will be making more money. I don't want to fall into the trap of spending more because we'll have more.

Thanks for reading my ramblings, and for any advice!

Anne

iVillage Member
Registered: 05-09-2005
Sat, 07-12-2008 - 2:14pm

Hi,
The escort is an 11 year old car -- if you are lucky you might get a little over $2,000.00
I'm guessing.
Let's assume the airport is 60 miles away and you get at least 15 miles to the gallon --
you'd use probably 4 gallons of gas each way = 8 gallons X $4.50 a gallon = $36.00 driving cost to and from airport + parking = about 86 - 90 dollars per airport trip.
If he used the car service = $90.00 per airport trip, back and forth.
So those are about the same money wise. So that is no help in deciding really.

So consider the rest of it: would he rather not drive back and forth to the airport? Would his company reimburse either for parking/mileage if he drove, or for the car service?
How much would you save on the insurance you now pay for the car. Would you want the convenience of an extra car when he is home?

He could try driving for a while. He might hate it. The car might break down.

See if he can find out if his company would give either some reimbursement for the car service or for mileage and parking if he drove. That might help in the decision.

Good luck figuring this out.

Megan

iVillage Member
Registered: 04-12-2007
Sat, 07-12-2008 - 3:09pm

Anne,


Until he gets settled into this transition and his new job, commute, etc., I'd take the car service.

iVillage Member
Registered: 07-12-2008
Sun, 07-13-2008 - 12:14am
Is the company going to pay for all the hotel, cell phone, meals, etc. while he's working in NJ?
 

Steve

 
iVillage Member
Registered: 01-25-2006
Sun, 07-13-2008 - 12:15am

I too am wondering about reimbursement from the company. When I am traveling for biz, I am paid mileage to/fr airport and for parking. The reimbursement rate is now right around 55 cents per mile so you actually get paid more than the gas expense...it's intended to compensate for things like oil changes and wear and tear. If he is not going to be reimbursed, you might be able to deduct these costs off your income tax as unreimbursed work expenses. I bet they reimburse though if they are paying for the airfare and other travel.

That being said, since the cost is pretty much a wash, I would check with the company and see if they will reimburse the car service. At my company, it'd probably be a hassle but they'd probably do it if the cost was a wash. I'd be inclined to do that whether or not I sold the car. I probably wouldn't bother selling the car since it probably isn't worth much and that way he can get to the train when he is in town, etc.

Peg

iVillage Member
Registered: 02-11-2006
Sun, 07-13-2008 - 7:33am

Thank you all for your thoughtful responses! I don't know why the company pays for parking, airfare, and lodging, but doesn't reimburse for driving/gas. Getting mileage would be great! I guess I should have also said that I really dislike the escort! (just a personal thing, no major reason) I always think about selling our 2nd car when I'm looking for a boost in paying big chunks to the ccs. DH is going to try the car service this week and see what he thinks before we make a decision about the car.

Thanks for the support as always!

Anne

iVillage Member
Registered: 11-17-2007
Sun, 07-13-2008 - 2:36pm

I am sure that your husband still knows that if he does hire this service as long as he get a receipt from the driver that states the price and from where like your home to the airport It is still deductible on his taxes as misc expences.


All it cost him to go on these trips should be deductible I would make a call to the IRS to check it out but it seems that it would be. Oh when asking questions to the IRS Call

iVillage Member
Registered: 04-10-2003
Mon, 07-14-2008 - 11:37am
Its probably best to give it a try and see how it goes before making any decisions. Strange that they don't reimburse mileage . . .

Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."




Bex -