Monday, 21 March 2016
In the course of the last week, we drove ten or more different cars, thought of a lot of things, pondered used versus new, made some offers, dealt with dealers, walked away from this and that, and chose:
We put money down, sold the dead car for a song, and decided we could no longer be without a car I could safely drive.
A car with low-to-no mileage was the choice we made because the reality is any of our remaining vehicles could go. They are both well into the 100,000 mile mark. Yes, we could have paid cash for a used car, but with the money we could spare, the car would not have been a good ROI. Hence, car payments at 2.89% spread over a long period of time.
Why spread car payments out? While the priority is to pay things off, the reality is to make things affordable and to keep up with our goals. In this way, as other debts reduce, we can increase payments elsewhere. If something comes up, money can be routed as needed more easily. Reality requires our being flexible.
Was this a wise decision?
I am not sure this was a “wise” choice – but for us, it was the best choice. Car payments will not affect us financially in a significant way, meaning we are not going to be scraping the bottom of the barrel each month. We will make adjustments to the budget as necessary. Savings will be replenished as a priority, and bills will be paid as necessary, and in the priority set up. We did not use credit to make the down payment, but wrote a check. Not perfect, but better than what we could have done two months ago!