The biggest things going on in our financial lives right now involve vehicles.
We’re hustling hard to have our current vehicle paid off by Christmas (a year early) and working hard to meet our savings goal of buying a second used car, in cash, by July. I’m happy to report both are going well.
Someone suggested to me recently that rather than buy a cheap, used, second vehicle we should use our cash as sizeable downpayment on a brand new car instead. As tempting as this is (who doesn’t love new, warranty covered, vehicles?), it’s not something we’re even entertaining.
For one, we want to buy this second car ASAP. June ideally, before we’re running to soccer games after work twice a week and I struggle to even get there due to lack of vehicle. If we were to do as suggested, putting a downpayment and finance the rest, it would mean we are taking on a second car payment before our other vehicle is paid off. I don’t want one car payment, let alone two, and even if we could pay it off relatively fast, I do not want to even fathom what might happen if something happened to one or both vehicles if they were both carrying loans.
Taking on a second car payment would definitely delay paying off our current vehicle and other financial goals. Not worth it.
The goal is to pay off debt, not take more on.
We’re at a point in our lives where we can’t live with one vehicle anymore. Even if we lived smack downtown with walking amenities almost at our fingertips, the fact would still remain both Mike and I need our own vehicles. He travels all over hell and creation for work and will leave town on a days notice. With a kid who’s involved in stuff and us traveling to family and friends all over the city, I can’t be left without a vehicle anymore. That doesn’t mean I need brand new though.
We’re looking for a used vehicle but just because it will be well loved, likely have a decent amount of mileage on it, and in the range of 7-10 years old, doesn’t mean it’s write-off though. My first vehicle was a 14 year old car when I bought it for $750.00. In three years I put a total of $300 into the vehicle and sold it for $800.00. When it comes to cars, this is a pretty good deal.
While we’re looking to spend more than $750 this time around, I am confident our budget will find us what we’re looking for. Something safe, reliable and will serve our family the next few years.
Any tips for when we do go shopping in next few months?