Monday, May 2, 2016

To New Car or Not??

Every day as I pull into work I park next to my coworker's shiny Infinity SUV and I'm reminded of how nice it would be to drive a new to me car.  I would love to have a newer, reliable car with four wheel drive for our snowy winters.  I'm putting away $400 monthly in anticipation of my next car.  I could easily trade my savings for a car payment.

If I could squash my practical side, I could easily make this happen.  However, I want to pay cash for my next vehicle.  I detest owing money.  I loathe getting paid only to watch my paycheck slip away to creditors.  Vehicles are the worst way to spend money as they depreciate rapidly.  With the law of diminishing returns, I think my happiness would only go up for a month at the very most.

I won't buy a new vehicle any time soon but I still daydream about it now and then.

6 comments:

  1. Yep, that is where we are as well. Not so much with cars, but an RV or a screened porch. Even college or moving. No more debt, lots of dreaming.

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  2. Both TheHub and I drive our cars until they are just about toast, then we buy a new or new to us used car. Fortunately, neither of us are car people and as long as the car and the a/c work we are fine driving them for a long time. I have been driving my current car for 10 years and I am hoping to eek one more year out of it. Son3 is finishing up his Jr. year of college and we could buy a couple of cars (used) with what we are paying in tuition each year.

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  3. You're responsible though. Would it be better to have a car payment at a super low interest rate and invest the money in hopes of a higher return?

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  4. I get car envy sometimes. But to make myself feel better I think about all the things my coworker can't buy and enjoy because they have a car payment. I want to buy a Tesla Model 3. If I order one today it probably won't be delivered until 2018. So my plan would be to pay the $1000 deposit now, and then start saving. By the time I get the new car I'll have enough to pay for it in cash. :)

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  5. Good for you to still be saving for it though!

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  6. New cars are nice and provide a sense of accomplishment whenever one is purchased. It's a great idea to spend cash instead of credit or monthly payments only if it can be afforded. Building credit is typically a better idea in the long run as long as each payment can be met responsibly.

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