I have made mention that we were looking to get second vehicle. We’ve done well with one vehicle for some time but with my commute to work, Maria’s involvement in activities increasing and Mike still occasionally traveling out of town for work (taking our only vehicle with him), the time has come. We were hoping to wait until the debt was paid off but neither one of us is interested in the scramble that we have going on now any longer than we have to. We would 100% be screwed if we didn’t have our family to rely on. While I love them, and know they don’t mind helping us out, we would like the independence from them and their vehicles.
Before we could figure out a timeline about when this purchase is going to happen, we needed to figure out a target price. The car we buy will be used and likely a private sale. We also need to consider additional costs involved such as registration and paying for something like a CarProof report or mechanic exam. The last thing I want is to buy a car that I later finds out has a lien on it or something!
After doing a few days of research, we decided a target price of $5,000 would get us the kind of vehicle we’re looking for. Moderate mileage, safety inspected done, reliable and less than about 8 years old. We want a car that’s easy on gas since we have a SUV crossover now that isn’t so great with city driving (but satisfies our requirement for a larger vehicle for Mike’s work equipment). We’ll save an additional $500- $1,000 with a max savings target of $6,000 which will be able to take care of stuff mentioned above such as registration.
In order to do this, changes will have to be made. We’re not going to start saving for this until November at the earliest. We want to finish paying off the loan we’re currently working on before we look at saving for a car. As long as stuff like hot water heaters stops breaking on us we should be on target to have this loan paid off in October and start saving for the car by November. I’m not interested in buying a vehicle in the winter (in case we don’t get winter tires with the purchase it’s a cost we could save up for), so we won’t buy until probably May 2016.
This gives us seven months to save $6,000, a monthly target of about $850. Given that we put a minimum of $1,000/month towards this current loan, alone, I know the money will be in our budget, it does however mean that the next loan in line to be paid off will be delayed. It will still be getting some additional payments (anywhere from $150-$400 extra per month), it won’t get the full payment until after we buy the car. It’s too far in the future to know if we will be able to ”make up” the money we’re putting into the car, which is lost in extra debt payments, but I sure hope even with a $5000-$6,000 setback we can still meet out target of November of 2017 to be (non-mortgage) debt free, I’m just not 100% sure how I’m going to make it happen!
To find out what car we got check out this article. To get tips on how to buy your next car read the other two.
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