Bought a Used Car

[cs1992]

In my quest to lower my overall debt load, I sold my old car and bought an '02 Mazda Protege with 40k miles on it from an individual. This purchase lowered my principal owed by about $4200. Since the car had so few miles (new tires too) and was well taken care of, I felt it was the best thing to do.

I am simply sharing this information with you because I have learned the hard way that new cars are not always the best bet. I enjoy the warranty and reliability of a new car, but in my case, the economics favored a used vehicle. We bought my wife's vehicle brand new about 5 years ago and it's been a long road in paying it off. I really like her car, but I don't think it was worth it when we could have found a similar, slightly used vehicle for $1k's less.

Now, if I could only get rid of he home equity loan!

[sweeps]

Great job!

[poundwise]

Sounds like a great move. Congratulations!

[maat55]

After becoming a Dave Ramsey fan I've changed the way I think when buying cars also. I save 500 a month like a car payment, then every 3 years we replace one car. This means we drive a car for six years, we look for cars that are 1 to 2 years old with low miles. We will look first at buying from the public to get a better deal. We can sell the used car first or wait till after depending on what we are looking to buy and at what price. Not having car payments is so cool.

Benefits of paying cash:

Your car is always an asset.
Your never upside down.
You never pay a penny in interest. ( You earn interest )
You have available funds for repairs.
You can carry high deductable ins. or liability with less financial burden.
Your never late on a payment.
You cannot be repoed.
Your never at the end of a bankers leash.
The saved money can be used as a secondary EF in emergencies.

[project15]

Benefits of paying cash:

Your car is always an asset.

edit: a depreciating asset.

[maat55]

project15

Thanks for making that aware to the two people on the planet that didn't know that. I used the word asset because we all know cars are not an investment.

[InDebtInDC]

project15

Thanks for making that aware to the two people on the planet that didn't know that. I used the word asset because we all know cars are not an investment.

I don't mean to nitpick, but I think you mean "financial investment". All properties are investments of some kind, even if just purely emotional. Otherwise, you shouldn't have them.

[maat55]

Has anyone got a fly swatter.

[vinnieg24]

lol maat

the only thing that worries me about buying a used car is a. that it has been in an accident and I do not know it (maybe a carfax report is included) and b. it is not as reliable as a new car

what do you think about leasing? so you are only paying for it for a couple of years and then you can get a new car before your old one needs maintenance? Just curious what everyones thoughts are

[kilapapipa]

lol maat

b. it is not as reliable as a new car

I disagree here. I maintain my 1997 Suburban to a tee, including front end parts and with a 170k on it, I would bet on it being just as reliable as a new suburban.

NEW is not another word for reliable. Just ask the owner of a 6.0l Ford Powerstrke pickup.

Also, Parts don't cost me $400+ a month and that is a guarantee with a new Suburban.

[maat55]

I'm used to driving cars well past 100,000 miles. Buying one with 20,000 or less and driving it 5 to 6 years is no problem. Leasing a car, AHHHHHHHHHHHHH. Too many snares to watch for, Mileage, damage and paying a down payment to get to rent bothers me. Leasing is a bad step above buying new and paying interest. But, it's all about what floats your boat.

[InDebtInDC]

Be careful with resale on that Mazda. If you're going to run into the wrecking yard then you wouldn't care, but don't expect to get much money for it when/if you sell it.

[MonkeyMama]

lol maat

the only thing that worries me about buying a used car is a. that it has been in an accident and I do not know it (maybe a carfax report is included) and b. it is not as reliable as a new car

I'd have to disagree too. There is nothing inherently less reliable about a used car.

I've never had a new car, for one, and never had a car that wasn't reliable.

[vinnieg24]

maybe reliable wasn't the right word. I just meant that you may not have a warranty etc. and that might cause some mental discomfort on the buyers part.

I never really thought about the snags of leasing, you're right. I guess it might be better to own it.now i want a new car lol

[Snave]

After becoming a Dave Ramsey fan I've changed the way I think when buying cars also. I save 500 a month like a car payment, then every 3 years we replace one car. This means we drive a car for six years, we look for cars that are 1 to 2 years old with low miles. We will look first at buying from the public to get a better deal. We can sell the used car first or wait till after depending on what we are looking to buy and at what price. Not having car payments is so cool.

Benefits of paying cash:

Your car is always an asset.
Your never upside down.
You never pay a penny in interest. ( You earn interest )
You have available funds for repairs.
You can carry high deductable ins. or liability with less financial burden.
Your never late on a payment.
You cannot be repoed.
Your never at the end of a bankers leash.
The saved money can be used as a secondary EF in emergencies.

Have a funny Dave story. I lived in Nashville for years and Dave actually uses a park close by. One day my friend was parked next to Dave when they were both going for a run/walk. Dave commented that he liked my friends new jeep. He had just bought it and was extremely proud. He told Dave he just bought it, paid cash and he had taken him a few years to save up for it. Dave smiled.