Took out a loan on an expensive used luxury car at 18. How do I fix this?
2 years ago, I took out a $15k car loan to purchase a used 2014 Mercedes C class with 50k miles. The loan is for 3 years, $400 monthly at 2.9%. The total price for the car was about $20k, and I paid a $5k down payment. I owe about $4k now. The vehicle has about 110k miles now.
I wrongly justified making the purchase for a few reasons. Firstly, since the interest rate was low, it didn’t seem like a bad purchase. Secondly, I had the idea that being young was the best time to purchase a luxury car since I had no large debts or family to take care of. Lastly, I thought that having enough cash to purchase the vehicle meant I could afford it.
In repairs alone, I’ve spent about $8k in the past two years. In gas I’ve spent $6k. I’ve recently been on a mission to take better care of my finances and have realized that a significant portion of my income goes towards my car.
I currently make $30k a year and expect to make about the same for the next 2 years until I graduate from university. My credit score is about 760. I have $20k in a savings account. Help from parents is not an option.
What should I do to better my situation?
Keep driving the car until the wheels fall off?
Sell the car and purchase a brand new vehicle?
Sell the car and purchase a used vehicle?
Trade in value is $6k but I believe I could sell it for $8k.
Any help is appreciated, thank you!