How much money would you have if you didn’t buy a nice car?
I bought a brand new car in 2008, and I constantly think about how I could instead have hardly any school loans and have tons of money saved, if I would have just bought something cheap instead and maybe waited awhile until I got a nice car, or just always drive a beater and save tons of money forever.
I could be saving $400 a month from not having a car payment and a tad in car insurance (my car insurance is extremely cheap because of multi-lines) and I would also be more sane. I’ve had over 16 people hit my car in the past 3 years (never my fault, nearly every time they drive away and someone reports them).
I constantly find dents and scratches and it drives me ABSOLUTELY INSANE. Right now the front and back of my car needs to be replaced because someone else messed it up. Over $5,000 worth of damage that I have just right now AHHH!
Anyways (to stay on topic), I could probably get something older that gets better gas mileage, to make life even easier/better. I could pay off my car and drive it to the ground, sell it and buy something cheap and make a profit, or buy a gas efficient car.
My goal is to pay off my car with my bonus money from work, and if that’s not enough, then pay off most of it and use my tax return money for the rest. I can’t wait until I have no more car payments! Was it worth it paying $400 every month for almost 4 years? I honestly don’t think so.
What do you think? New or Old? How does money play into your decision?
Do you think that a car is more of a luxury and something you don’t need, or is it one of the things in life that you like to splurge on?
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Serendipity says
December 15, 2011 at 9:17 amI was talking to Rambo last night about this. I remember when I had first gotten my Malibu I couldn't really afford it. I shouldn't have gotten it honnestly, because I technically couldn't afford it until I had gotten my raise and promotion in September. Now that car was totaled, and I was able to walk away with almost 6,000 to put on a new car, I decided to buy a car that fit my needs and was within my 6,000 budget. I'm so glad I didn't back down and get another car with a car payment. I will now be car payment free for the first time in 3 years and I'm really excited about it.Yes, older cars perhpas aren't as reliable, and you probably will pay for service and maintanence, but you're going to do that with any car. It's when the costs to maintain the vehicle outweigh a nice reliable care with a car payment then you should probably reconsider. But if you hade $400 a month shaved from your budget, you could easily save up $4800 a year without even trying.
Meg {henninglove} says
December 15, 2011 at 9:28 ammoney definitely factors into my decision for a car, my opinion of a car is it gets me from Point A to Point B, I don't need it flashy, i want it to work and i want it to be safe. But I don't want to spend an arm and a leg for a car, my husband bought a car 3 months into dating, it is a Saturn and I can't wait for the day that we give rid of that car, I am toyota and honda all the way!
Live Simply- Live We says
December 15, 2011 at 10:09 amIf we were not able to pay cash for our car I'm cash we would not have bought it. We probably could have gone a bit cheaper but it is so nice to not have payments
House of Sykes says
December 15, 2011 at 10:20 amI bought a brand new car in 2008 as well, and it costs me $311/month. It's a Honda CRV that I will drive until it dies. While I could have bought something used, I would end up having to buy something again in less time than if I bought new. I don't believe in buying luxury vehicles, however, because they cost more in every area – insurance, gas, tax and service. Cars are a luxury item that depreciate the minute you drive them off the lot.
Sincerely Sara Cate says
December 15, 2011 at 10:20 amWe recently bought a new car. The sale at the time made the new car the same price as an identical one 2 years older with 50,000mi w/ a 0% 60 mth loan. Now we have a new car, under warranty, with no interest – those were the biggest deciding factors for us.
~Carla~ says
December 15, 2011 at 10:21 amWe are car-free…our budget would be crazy tight if we had car, insurance, & gas to worry about too. Eek!
lowcarbhighstyle says
December 15, 2011 at 10:29 amI'm with you on the old, my family always bought older cars outright and they were just fine. I think buying a new car is a big waste of money because they lose so much value immediately. Unfortunately my husband does not feel the same way and I anticipate always having a car payment unless we ever make enough money to buy a really nice one outright!
working.for.money says
December 15, 2011 at 10:55 amWe replaced both of our older cars this year with "less-old" cars. We paid cash. I also always budget any extra $500 or so into the price to get a factory service done at time of purchase. Driving older paid-for cars is nice when not having to worry about inevitable dents and scratches. Oh, and insurance is way cheaper to. It's a win, win, …
Tanner says
December 15, 2011 at 11:54 amI'll go with 'used' (instead of 'old'). Even though me buying a car is still 2 years away, I know want a nice new-to-me used car that is not too fancy, and maybe -5 years in model year. I just want something I can drive for about 4-5 years and THEN buy a really nice car (probably still used). If you ask me, new cars are a pain. And I really hate car payments! Money plays a big time role on my decision, of course. I need to fit it into an already crammed and busy small single budget. A car is a luxury for some, but for a lot of us that do not have public transportation available at all, it is a neccesity. I'm not sure it's something to splurge on, since it is something to get you from point A to point B, but having been the embarassed owner of a broke down, ugly looking noisy old car for quite some time in the past and spending 2hrs+/day, 6 days a week inside it, I have to say you need to get something reasonably nice without going overboard. It will save you on repair costs too.
Married...with a Pup says
December 15, 2011 at 11:57 amAh, this convo is seriously going on in my household every second right now! My car is almost paid off, so it is time for my husband to get a new car (new as in…new to him, not brand new!). Cars are such a bad investment and so much money to maintain….yet, we like nice cars! I feel you too….I find scratches/dings on my car all the time and it drives me crazy!
Annemarie @ Brunch a says
December 15, 2011 at 2:06 pmI bought brand new about 6 years ago and it was the worst decision ever. I ended up having to sell it less than a year later (a death in the family and I inherited a nearly brand new car from them) and for 13K less than I bought it for, when it was nearly brand new itself. When it comes time to buy again, I'll look for the model I want but used by a year or two. As always, love your posts! They make me rethink my budget, which I love!
Anonymous says
December 15, 2011 at 2:12 pmI drive a clunky old Honda. I paid $2000 for it 18 months ago and have only had to do a tune up and brakes/roters so far. I'm all for driving old clunkers. I used to have a really nice and expensive SUV that I bought brand new but I was really struggling to make the payments. Instead of making payments now I save the money.
Michelle P says
December 15, 2011 at 2:36 pmThanks everyone for your inputs! Can't wait until it's paid off. It'll be nice to have so much extra money.
Stephanie says
December 15, 2011 at 2:48 pmugh I'm always SO split on this decision. I went 5 months driving a 12 year old Lexus without having a car note and honestly, I was completely fine with it. It was then that I knew I didn't "have" to have a super nice car. I mean, after all, you just need something to get you from point A to point B. I think people look at cars as a social status but when you think about it, I've never made or lost friends because of the car I drove.I ended up buying a new Lexus in August solely because I know they're really good cars and since the other one lasted so long, this one will last me for-ever too. I do, however, think that the more a car costs sometimes does reflect how good of a car it actually is. Trust me…I have been around the world and back when it comes to car drama so this is one of the few things I've figured out.
Daisy says
December 15, 2011 at 3:20 pmI don't know how I feel about this. I drive a 23 year old car, but it's a mercedes so it doesn't give me that much trouble. I can understand where people are coming from wanting a newer car because they just break down less, they start when you want them to, and they're actually safer. I will probably get a new(er) car when this one dies, but it will be 2-3 years old under 40K on it. Plus I'll pay for it in cash. No car payments! But I'll try my best to make sure my student loans are paid off by then 🙂
devorelebeaumonstre. says
December 15, 2011 at 3:24 pmnice. xp.s. I'm having a giveaway from This Is Transition if you'd like to check it out. 🙂devorelebeaumonstre.com
Nav says
December 15, 2011 at 4:58 pmI always go cheaper car when you are starting out, but hun its such a personal thing. I would get a new car if i had cash laying around.xo Na vhttp://navlandstyle.blogspot.com/
Mommy Saves ALOT!!! says
December 15, 2011 at 10:59 pmI'm actually glad we got newer cars. Up until August 2010; my car was 14 years old and my DH was 18 years old. Although we loved our cars, they were always giving us trouble.It was also becoming unreliable as I have too young children and would hate to get stranded anywhere, especially at night.Also, fixing the cars almost became monthly payments themselves!
Anne Sabine says
December 16, 2011 at 2:04 amPersonally, I'm not a fan of owning cars because they depreciate so rapidly. It's like your paying someone the depreciated value so you can by the car at the original value. If and when I ever get a car, I'll probably just lease. I should probably read up more about it then too!I do feel like cars are luxury splurges depending on where you live/your lifestyle. Some people absolutely need a car to go to work. I live near NYC so a car is not too much of a necessity. But when I move into the 'burbs when I'm older/ready to settle down, I probably couldn't go too long with out a car. That said, I still want a car like the one in your photo!