March 28, 2012

debt diet and replacing cars: how to pay cash for a car

it has been 6  months 
since i celebrated this day
the day we could officially
declared at the top of our lungs

that we
had
no 
more
credit 
card 
debt!

i swear i never ever 
want to be in that place again.
ever. 


we now pay off everything monthly,
sometimes sooner
and we
prefer it that way

(again, thanks to
this man and his book
can't say enough about it)


so with 6 months of 
dutiful financing underneath our belt
we must think about the
inevitable

it is time.

it is time for us to upgrade the vehicle.

now most sane, normal, everyday americans 
go through this process every 3-4 years.
some wait even 6-8 years.
die hards will make it 10-12 years.
(the average is about every 5 years)

not sure what category we fall into.
we have been driving our beast for
14 years.  

crazy?
i know.

this is us the year we  bought our car.
the twins are 5 months old and big sis is just two.



it truly has been the greatest car ever.

many treks to our beloved disneyland
back in the day.


this was the girls
all geared up for a dad's-only
camping trip.


not sure where the time goes but it has gone

so now the search has begun.
let me add,
after we paid off our last car
(probably in 2008)
we continued to pay our car payment 
to ourselves.

**this is the key, peeps.
continue to pay yourself 
allowing at least 4-5 years of this 
and before you know it.
your pile of car payments to yourself 
is now equal to writing a check for your next car.

i know you want to celebrate
when you make that last car payment 
with a big steak dinner and 
more moolah for you.

but instead, 
start that 'car fund', 
stash it away
and watch it grow.


not a bad gig
really


lo and behold,
 we have a small stash of cash
ear marked just for that.

mamma needs new wheels.
so i must ask myself,
what do i want to still be driving 
in at least 14 more years?

i have some ideas...

hint, hint...

ever pay cash for a car?

would love your thoughts, strategies, car ideas.

all of it.


14 comments:

  1. We have! It feels good. And if that is what you choose, you will be happy. Mine has 114,500 miles on it!!!

    ReplyDelete
  2. Sooooo inspiring!
    I plan on driving my car long enough to pass it on to my boys.
    Hopefully they won't be too tempted (or even able to ) to go hotrodding in a 12 year old minivan!
    Aaron drove his beat up, old, hunk of junk, pick up truck until it had almost 300, 000 miles and finally dies.
    Then he paid cash for his dream car.
    It's 50 years old, but he waited a long time for it!
    I really like the idea of saving up for my next car when we pay off the one I'm driving now.
    Awesome.
    I think we need to get that book. (even though I am secretly afraid of the changes it will require of me)
    Thanks for the inspiration.
    Love from,
    Greta

    ReplyDelete
  3. Keep in mind interest rates are VERY low on cars. May do better keeping your little next egg working for you, use some for a down payment so that your car payment is then reasonable.

    Something to consider...

    ReplyDelete
    Replies
    1. as one of my valued financial role models, this is great advise. will keep in mind when it comes time to pull the trigger. thanks, k.

      Delete
  4. I consider myself extremely blessed to be able to say yes, I have paid cash for a car. If you buy used (not such a bad deal), we shop at CarMax (You can look at their inventory online and have a car shipped from a different location). You save a lot of money once it's been driven off the new dealer lot. When we bought our new car with cash (our "beast"), we found the "one at this price" deal in the newspaper. It started Thursday morning, so we were at the dealer thursday morning when it opened. They tried to tell us they didn't have the deal, but we brought the paper to prove it. We saved $10,000 this way. They talked us into financing, which saved us an additional $1,000, and then I just paid the entire thing off with the first payment (make sure there is no prepayment penalty). Cash doesn't always get you the best deal, so maybe be willing to do either and just pay it off right away. Getting financing approved ahead of time at the credit union might get you a better deal at the dealership as well, since they want ALL of your buiness. Also, if you are shopping around, tell them where else you've been looking. You can go back and forth and grind them down if they know someone else is involved (I do this with carpet stores, too). You'll be in the best position to get a good deal if you are patient and willing to wait on a sale (I'm sure you have this down). There are some great websites on sales tactics, and they have used most of them on us, right out of the book!
    http://www.negotiationdynamics.com/Newcar.asp
    http://www.carbuyingtips.com/car5.htm
    Good luck!
    Heather

    ReplyDelete
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