I agree with Lindsay! We have had beater cars in the past and have taken care of
them only to have more and more bills for car repairs! I don't mind making
a reasonable car payment if I know the car is going to start when I need it too!
We have had way too much experience with broken cars. I think we are cursed!
The problem with buying a $2,000 beater is the repair bills that will end up
costing more than the car! Which is why we're now replacing our '02
SUV with a newer model. But a $17,000 vehicle with a $20,000 income is silly.
No one "needs" a $38,000 handbag either but if people didnt buy them
companies wouldn't make them
Purchasing a vehicle with cash is good in theory, but much more complicated in
practice. If you have $10k in savings, you shouldn't blow it all to
purchase a car outright if that is going to leave you open to bigger risk down
the road. Financing a vehicle is fine if you need to, just make sure
you never owe more than the car is worth. In most scenarios, that involves
paying upwards of 50% down and making more than the monthly minimum payment. I understand the Ramsey-love, but some of his stuff just shouldn't
be preached like an end-all solution. Take the time to do your research and make
a decision based on your situation. Never put 100% of your trust in someone who
has a financial stake in your behavior.
as is expected, very sound advice. I used to have a truck payment of around
$300, add in insurance and gas, and it cost me nearly $700/month to drive that
thing. Now we have a little beater truck that we paid for with cash, sure
it's not as nice as the other vehicle I had payments on, and I still miss
the other truck, but I can still haul things, it gets me to and from work, runs
well, and after gas and insurance it costs about $150/month to drive. I wish I
had learned that lesson before, but I'm glad I know it now.
I'm now in my seventies and have owned quite a few cars over the years. One
thing I have never done is to make a monthly car payment. It I didn't have
the cash, I didn't buy it. A couple weeks ago I paid the most I have ever
paid for a car, $4,500. It's a Toyota Sienna with 107,000 miles on it. It
runs great, is comfortable and provides everything I need in transportation.
Another advantage to not owning expensive cars is that you pay a lot less for
insurance. I figure I have saved thousands of dollars by following this plan.
My wife's and my contribution to my kids' higher education was to
teach them at a young age that nothing in life is free and that they should
1)Plan to continue their education beyond high school, 2)Do everything in their
power to work and save up to pay for it, and 3)Don't live beyond their
means, whatever those means turn out to be.The result is that all of
my children graduated with baccalaureate degrees that they worked for, saved
for, and paid for by the sweat of their own brow. We contributed where we could
towards housing, transportation, etc but the bulk of their education was paid by
their own ingenuity and hard work. And, I might add, they all graduated without
one red cent of student loan debt.They've proven it can be done
and that a student can survive on a shoestring budget and even marry and enjoy
the ride along the way. Best of all they are productive members of society
today and have the pride of knowing they have learned what self reliance is
without a silver spoon in their mouths from mom and dad.