We haven’t had a car payment since 2011, and we don’t miss it.
We financed my wife’s 2004 Saturn Wagon, and it’s the last new car we’ll ever buy and the last that we’ll ever finance.
Selena’s car, our main ride, has over 200,000 on it. The only major repair we’ve had to make was to put a new transmission in it last year. Thank you, emergency fund. Other than that we’ve only spent on routine maintenance.
My ride, which hardly gets driven, is a 2004 Ford F-250 Super Duty, 3/4 Ton truck, which we bought in 2008 for cash, also has almost 200,000 miles on it. It had to have a transmission last year also, but other than that, only regular maintenance.
Why do we have a 3/4 truck? Because we, unlike many truck owners, need a truck. We live on 408 acres and sometimes have to haul the tractor in for work. In addition, I occasionally tow classic vehicles to shows. Thus, the 3/4 ton truck. We also actually haul stuff in the back of our truck; such as gravel, mulch, trash, etc.
While Selena’s car is still straight and sharp looking, the truck isn’t so much. The right rear bed side has a large dent in it. I turned the tractor trailer too tight one time and pushed the spare tire into the fender. On top of that, I drug the same fender against a white awning post, leaving a large blotch of white paint above the original dent.
There’s also a few other dings, here and there, but both drive great and have frigid air conditioning, a must in South Central Texas.
A few years back I was at a friend’s kid’s birthday party, and a friend of the child’s mother, a car salesman, said: “Why don’t you come down to the dealership and let me get you into the new truck that you deserve.”
I looked him straight in the eye and said: “My truck is going to out last me. I’m never going to replace it and I’m never going to have another car payment.”
His jaw hit the ground.
Why should I replace it, or Selena’s car? They both get the job done, are safe, and we don’t owe anything on them.
Just heard a radio commercial today, for a nearby car dealership. “Owe too much on your car, but want a new one? We’ll wipe out your old loan when you buy one of our new cars.” Only 75 monthly payments. 75 payments, because they’ll add the original car loss into the new loan, so it won’t hurt so bad. 75 payments. 2 and 1/4 years worth of payments and interest.
Only 75 monthly payments. 75 payments, because they’ll add the original car loss into the new loan, so it won’t hurt so bad. 75 payments. 6 and 1/4 years worth of payments and interest. It’ll probably cost 2 and 1/2 times the sales price.
Really?
Personally, I’ve never had a brand new car, although I have had two brand new motorcycles, which never had the “New Car Smell.” My Wife has had two brand new cars, but not me. Why did we buy brand new? Because we didn’t know any better.
It’s never going to happen again. Nope. No new cars; no more payments. No brand new motorcycles. If I can’t pay cash for a used ride, then it’s not going to happen.
I’ve looked at what we’ve spent on finance charges and when you figure in the immediate depreciation of a new vehicle, it’s dumbfounding.
Sure, new vehicles are nice, but when you drive it off the lot it depreciates by 11%, according to Trusted Choice dot Com. What an investment.
But, then again. If you keep the car long enough it will go up in value.
I have my Mom and Dad’s “Bought New” 1965 Chevy Impala Super Sport and it’s worth a fair amount more than when it was bought new, at about $3,000.00.
I can’t say that’s ever going to happen with my wife’s 2004 Saturn Wagon, though, but that’s going to be something that our kids will deal with.
Selena loves her wagon and Saturn’s no longer around. On top of that, there are not many wagons made these days, so we’re going to keep this one as long as we can. As for the truck, who knows. I plan on it being my last one.
So, no payments here, with no plans to have any in the future.
How about you? Are you saving money by hanging on to your high mileage car or truck?
