Author Topic: Car Woes Lead to Bad Decision, What to do?  (Read 2185 times)

mo10

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Car Woes Lead to Bad Decision, What to do?
« on: September 03, 2013, 08:42:35 PM »
In frustration after a recent spate of unfortunate car issues, (car was stolen, got a new used car which was badly damaged 2 months later after being hit while parked.  My stolen car, 2000 Jeep Cherokee with ~137k miles was eventually recovered with all the locks, door and ignition, destroyed; even w/o the theft it was on its last legs. I sold the damaged car 2008 Suzuki 36k miles after it was repaired because it just didn't drive well and the constant reminder of the incident just ticked me off)  With that fresh in my mind I stupidly decided to look at new cars and in a moment of weakness ended up buying a Mazda CX-5 30mpg highway without thinking it through.  Though I got it for a fair price, and got an interest rate of less ant 1% on the loan I feel like I've strayed from my formerly frugal ways; this is the first time in my life I've ever bought a car for more than 10k or taken out a car loan.  Part of me wants to sell the new car, probably at some loss, and drive my Jeep until I can find an economical replacement.  Am I totally nuts, what's the best way to get back to a mustachian transportation situation?

CopperTex

  • Stubble
  • **
  • Posts: 157
  • Age: 41
  • Location: Mandeville, LA
Re: Car Woes Lead to Bad Decision, What to do?
« Reply #1 on: September 03, 2013, 08:51:20 PM »
It depends on your income and how big of a percentage this car payment is against it.  Personally, I don't think it's that big of a deal as long as you plan to keep the car for 10+ years.  If 3-4 years from now you trade it in for another new car - well now, that's just stupid.  You will get smacked with massive depreciation in the first few years but imagine you drive this vehicle for 20 years (which is of course possible) that depreciation will spread itself out over time.  I've always preferred this method to car buying better myself because I keep the car for longer and can keep it up the way I like.

mo10

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Re: Car Woes Lead to Bad Decision, What to do?
« Reply #2 on: September 03, 2013, 08:59:37 PM »
The payments aren't an issue at all I have enough cash to pay it off the rate is just lower than I get even in my 'high' yield savings account.  I figure I would need to keep it for about 13 years to average out to the same amortized cost per year as my used cars got me.
« Last Edit: September 03, 2013, 09:06:25 PM by mo10 »