Reply to Cost of a car and HHI/NW

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Car culture is depressing.  We are rich because we have only ever purchased one car, it was paid off in one year, it's 14+ years old, cost us 13K, and it has fewer than 90K miles on it.  We take the bus, walk or metro most places.  Spending 50K a year every few years (not to mention the insurance for an expensive car and fuel) is killing most Americans and then don't even know it.  [/quote]

You are not rich because you drive a crap car that’s unsafe. If you were truly
Rich, you would value your time/convenience over saving a few bucks.

Technology makes modern cars so much safer for families. I’m not driving my kids around in a 15yr old beater.

You don’t need to buy a Mercedes, a new Toyota is just fine.

Your mindset is unhealt[/quote]

No, your mindset is the issue.  If the car runs and is safe (and plenty of 10+ cars are safe), why would you overspend if you don't have the money?!?!?!  The mindset that you need/deserve a new car if you can't afford it is what gets people into debt/financial trouble.  Because that mindset carries over to everything else financial.   Then, you deserve a $5K vacation because you work hard---despite the fact you are not saving for "rainy day", college or retirement.

Here's a simple plan: buy a new Toyota for $25K (or whatever you can afford to pay off in 3 years) while trading in your old vehicle for $5K.  Pay off your car loan within 3 years, then continue to save that car payment for the next 5 years.  Now you have an 8 yo car and more than enough money to replace it by paying cash and possibly even able to upgrade if your financial health allows it.  Then you never need another car loan.

Want an even nicer car? then drive the old Toyota for another 2 years, continue to save and then trade in your 10 yo car and pay cash for whatever you can afford.  
Or buy the same style Toyota and you have your vacation fund for several years.

It's the mindset of "I deserve nicer things even if I haven't saved for them" that gets most into trouble.  Save, have money for a rainy day, then when it happens you are still good financially.

[/quote]

What?  This isn’t relevant at all.

Also, a 5000 dollar vacation isn’t that expensive to the average DC a professional.

And why would you buy a new car?  That’s a huge waste of money.  If you buy the same car slightly used you can probably go on a 5000 dollar vacation and break even [/quote]

Have you bought a used car in the last 3-4 years?  They are almost same as a new car.  
We keep our cars 8-10 years so we prefer new cars.  Just sold my 12+ yo MDX and got over $10K for it.  Given that it had $3k of body damages and over $1k of "electronics" that would need to be repaired, I'd say I got my money worth over the 12+ years[/quote]

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