What an accomplishment! You’re finally ready to take that step and embark on the adventure of higher learning. With careful thought, you’ve chosen your major and now the school. One last thing … How are you going to pay that high tuition bill?
Not only do you have to think about tuition costs, but you’ll have other school-related expenses too. You do have a decent car in the driveway. Should you sell it to lessen the financial burden? The answer isn’t so simple — but here’s what to consider.
Your Car Has No Lien
When it comes to paying for college, getting rid of your car may seem like access to fast cash. If you were gifted your car, or it’s paid off with no lien and has a pretty good resale value, it may be worth selling. You can take those funds and use them toward school expenses and tuition costs.
On the other hand, if you still owe money to the bank, you need to consider the cash trade-in value first. Paying it off to get a good return on your investment may be worth it, but if you don’t come out ahead with a profit, you might want to hang on to it for now.
Consider School Location
Where will you be attending school? If the campus is in the city or close to nearby stores and restaurants, you may no longer need your car. You could sell it and apply those funds toward outstanding tuition costs. Living on campus means you can walk to classes and have easy access to daily amenities. So, applying those extra funds to your savings or daily expenditures would be more practical.
In addition, if you live near the college, it’s easy enough for your family to pick you up on the weekends or during spring break. If you don’t have anyone to rely on for an occasional ride, it may be better to keep your vehicle instead.
Can You Afford Your Car’s Expenses?
Perhaps right now, you have a full-time summer job, which covers all of your gas, registration, insurance, and maintenance repairs. You may have to find a different job once you jet off to college, or you may find that you’re not able to work much at all.
If you keep your car, will you be able to afford those ongoing expenses? A side gig may not even cover gas, much less insurance, repairs, or unforeseen problems. If there’s no money set aside for these potential issues, consider selling the vehicle and putting the funds into tuition savings.
How Much Will Transportation Cost You?
If you have a reliable car and owe nothing on it, there’s one consideration to keep in mind: can you afford to get around without it? If you need your car to get to and from school or a job, don’t sell it, especially if transportation costs will be pricey.
Price check local Ubers or taxis as well as public transportation. Find out if the campus offers any discounts or free shuttles; otherwise, add up those costs. If they’re high, stick to what you got.
At the end of the day, there just really isn’t a one-size-fits-all answer to this important question. You have to sit down and really weigh all your options before you’ll gain a clearer perspective on what to do. Once you have your degree, you’ll be well on your way to affording your dream car.
