Author Topic: Two new cars? Am I crazy?  (Read 2069 times)

Hellohi

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Two new cars? Am I crazy?
« on: March 30, 2020, 07:48:48 AM »
What are peoples thoughts on taking advantage of some of the current car loan "deals"?  A lot of incentives are available right now due to Covid19. 

Current cars
2012 Ford Fusion, owe $0
2018 Hyundai Santa Fe Sport, owe $3500, payment $350/mo

I was looking at the 2020 Jeep Compass.  Sticker price of $31K with internet price of $25k (loaded) and 84 months 0% interest.  I should be able to get about $20k total for tradein's. 

I'd be financing about $30k for 84 months at 0 interest=$360 per month for 2 new cars.

There is nothing wrong with the fusion (my car).  My wife bough the Santa Fe used for a good price.  I didn't like the choice because it was the base model and she is used to more features but she wanted something with low miles and settled on this.  Now shes already hinting about something with navigation because she is getting a new job that will require some travel. 

v8rx7guy

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Re: Two new cars? Am I crazy?
« Reply #1 on: March 30, 2020, 08:14:34 AM »
Sounds like making up a reason to spend money to me.  Wants new vehicle Nav because job requires travel?  Oh please.  If it were me, I would take "advantage" of this market drop by having two paid off vehicles and upping my savings rate thanks no car payments.

ontheway2

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Re: Two new cars? Am I crazy?
« Reply #2 on: March 30, 2020, 08:32:30 AM »
A phone with Google maps works just as good as car nav, doesn't it? It also updates the maps much easier that a vehicle's navigation system. Get a dash/vent phone holder

fell-like-rain

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Re: Two new cars? Am I crazy?
« Reply #3 on: March 30, 2020, 08:35:00 AM »
What kind of used-car-salesman thinking is this? ďI could have two new cars for only $360/month!Ē Yeah, thatís still thirty thousand dollars youíre blowing just so you can have a shiny new thing instead of a perfectly good thing you already own. Youíve got to take a good long look in the mirror and then punch yourself in the face for even thinking about it.

ROF Expat

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Re: Two new cars? Am I crazy?
« Reply #4 on: March 30, 2020, 09:05:21 AM »
Are you already FI?  If so, and spending the the 30K doesn't change your financial situation, go ahead.  It wouldn't be a wise financial decision under any circumstances, but if you're in a position to do it and it makes you happy, why not? 

If you're not FI, do you have a plan to achieve FIRE?  Have you considered the impact of the proposed purchase on your FIRE trajectory?  Moving from two solid (almost) paid off cars that have already eaten through much of their depreciation curve to two brand new cars that will begin a new depreciation curve (and which will require more expensive insurance and probably more expensive maintenance) doesn't seem like much of a choice to me.  And don't let that 0% interest tag fool you.  You're talking about 84 months of debt.  The theoretical arguments about the value of a no interest loan don't apply when you're taking on debt for a depreciating asset that you don't need. 

If you buy the new cars, in eight years you'll have two used Jeep Compasses that might be worth around $10k (and you'll probably be at the stage where you want to replace them, requiring another loan).  If you invest the $360 per month for the next eight years, you might have around $50,000 dollars (assuming 10% growth, which is very possible given the shape of the market right now).  If you factor in things like the ability to drop comprehensive insurance, the difference might be even bigger.  Unless you have an extremely high income, the opportunity cost of this kind of car loan multiplied several times over your working life can negate a lot of  your other efforts in your FIRE journey. 


Hirondelle

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Re: Two new cars? Am I crazy?
« Reply #5 on: March 30, 2020, 09:10:12 AM »
You clearly mention you don't need a new car. Why are you even looking at new cars?

A deal is not a reason to buy something you don't need. If expensive stilleto heels are 50% off, are you gonna get them just because they're cheaper than they normally are? Don't be that person who pretends they saved money by spending a boatload of money on things they didn't need.

researcher1

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Re: Two new cars? Am I crazy?
« Reply #6 on: March 30, 2020, 09:11:36 AM »
What are peoples thoughts on taking advantage of some of the current car loan "deals"?  A lot of incentives are available right now due to Covid19. 

Current cars
2012 Ford Fusion, owe $0
2018 Hyundai Santa Fe Sport, owe $3500, payment $350/mo

I was looking at the 2020 Jeep Compass.  Sticker price of $31K with internet price of $25k (loaded) and 84 months 0% interest.  I should be able to get about $20k total for tradein's. 

I'd be financing about $30k for 84 months at 0 interest=$360 per month for 2 new cars.

There is nothing wrong with the fusion (my car).  ... Now shes already hinting about something with navigation because she is getting a new job that will require some travel.
You are dumb to consider buying one new car, let alone two.
I wouldn't even think of getting a new car until your vehicles reach 10+ years and 140K+ miles.

Also, when you do decide to buy a new car, get a GOOD one. 
The Jeep Compass is a heaping pile of garbage, made by a failing Italian automaker (Fiat), who is merging with a failing French automaker (Peugeot).
It ranks #15 out of 16 compact SUVs...
https://www.caranddriver.com/features/g15380025/best-small-compact-suv-truck/

You can buy a MUCH better vehicle for $25K.

Syonyk

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Re: Two new cars? Am I crazy?
« Reply #7 on: March 30, 2020, 09:50:00 AM »
Never mind.  Ban me.
« Last Edit: March 30, 2020, 02:56:27 PM by Syonyk »

Hellohi

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Re: Two new cars? Am I crazy?
« Reply #8 on: March 30, 2020, 09:53:09 AM »
I haven't been on here in a while.  I forgot how frugal you guy are. 

iris lily

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Re: Two new cars? Am I crazy?
« Reply #9 on: March 30, 2020, 10:08:32 AM »
Seriously, I didnít know that Jeeps arenít reliable drivers. Hunh.

Sibley

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Re: Two new cars? Am I crazy?
« Reply #10 on: March 30, 2020, 10:09:29 AM »
I haven't been on here in a while.  I forgot how frugal you guy are.

What did you expect? For us to tell you to go ahead? Go read the blog, from the beginning.

Keep both cars. Kill that car loan. Buy an appropriate holder for the wife's phone so she can use Google maps while driving, safely. If you don't like this advice, then you're on the wrong forum.

Malcat

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Re: Two new cars? Am I crazy?
« Reply #11 on: March 30, 2020, 10:16:45 AM »
I haven't been on here in a while.  I forgot how frugal you guy are.

I mean...you came here asking about buying two new cars despite there being nothing wrong with your current two cars...

Syonyk

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Re: Two new cars? Am I crazy?
« Reply #12 on: March 30, 2020, 10:25:12 AM »
Never mind.  Ban me.
« Last Edit: March 30, 2020, 02:56:32 PM by Syonyk »

Mr. Green

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Re: Two new cars? Am I crazy?
« Reply #13 on: March 30, 2020, 10:36:17 AM »
Unless the car nav system is Google maps, it sucks. I'd use my phone over another car nav system without fail.

RWD

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Re: Two new cars? Am I crazy?
« Reply #14 on: March 30, 2020, 10:56:46 AM »
If I had to choose between a 2012 Fusion/2018 Santa Fe and two 2020 Compasses I would choose the Fusion/Santa Fe easily, even if they cost exactly the same. Why would you pay more money for less reliable and slower vehicles? And it's not like the Compass get great fuel economy or something either (about the same as the Fusion, 4 cylinder model). Also, two of the same vehicle is redundant. Two different vehicles can cover a larger range of use cases. If you want new vehicles you should be looking at something like a Toyota RAV4 (practicality) paired with a Honda Insight (efficiency). The quality of those are way above the Jeep and costs about the same or maybe a little less.

Syonyk

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Re: Two new cars? Am I crazy?
« Reply #15 on: March 30, 2020, 11:05:20 AM »
Never mind.  Ban me.
« Last Edit: March 30, 2020, 02:56:36 PM by Syonyk »

Kevin S.

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Re: Two new cars? Am I crazy?
« Reply #16 on: March 30, 2020, 12:54:52 PM »
Seriously, I didnít know that Jeeps arenít reliable drivers. Hunh.

when has a jeep been "reliable" ?

as far back as the 1980 jeep's - cherokee and wranglers - all had issues. renault fuel systems were crap, wiring issues galore ! Oil leaks , major drivetrain issues, etc.

When chrysler is talked about - it's never been mentioned in the same sentence as reliable

Not when it was AMC / Renault bs in the 80's, Mercedes / daimler bs in the 90's / 2000's or even today with the FIAT bs - all of them are junk.

Speaking from experience here as a former mechanic that worked at chrysler dealership in the early 2000's for about 5 yrs.

The wrangler with the old 4.0 inline 6 tractor motor was about the most "reliable" you could get. Still they could have lots of issues - head cracking, overheating with the sealed system, lots of wiring issues, etc.

If you don't like working on your own stuff or spending alot of money on maintenance - do not buy a jeep !

« Last Edit: March 30, 2020, 01:02:05 PM by Kevin S. »

Syonyk

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Re: Two new cars? Am I crazy?
« Reply #17 on: March 30, 2020, 01:01:49 PM »
Never mind.  Ban me.
« Last Edit: March 30, 2020, 02:56:39 PM by Syonyk »

Kevin S.

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Re: Two new cars? Am I crazy?
« Reply #18 on: March 30, 2020, 01:06:09 PM »
If you don't like working on your own stuff or spending alot of money on maintenance - do not buy a jeep !

I thought the point of a Jeep was being able to spend a $bajillion on chrome plated air-lockers with internal anti-slip titanite and such...

(at least based on the Jeep parts catalogs I've seen - $60k of accessories and not a bit of mud to be seen)

it's a really rough trip getting the kids to the soccer field...

Now i will say here in the rocky mountains - you do see alot of the jeeps being used on trails / rocks and what not.

There is also a good portion of them who have never seen a trail let alone any rocks - i chalk these guys/gals up to the same harley (dress like a pirate day) "riders" who only ride there motorcycles to the local starbucks...

Posers haha

Syonyk

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Re: Two new cars? Am I crazy?
« Reply #19 on: March 30, 2020, 01:19:08 PM »
Never mind.  Ban me.
« Last Edit: March 30, 2020, 02:56:43 PM by Syonyk »

slappy

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Re: Two new cars? Am I crazy?
« Reply #20 on: March 31, 2020, 06:09:23 AM »
I haven't been on here in a while.  I forgot how frugal you guy are.

This isn't really about being frugal. It's about having a tiny bit of common sense.

Also, it's not just the $360 for two new vehicles. It's the increased registration fees and monthly insurance as well. I seriously don't get how this is even a question in this forum.

MilesTeg

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Re: Two new cars? Am I crazy?
« Reply #21 on: March 31, 2020, 11:30:55 AM »
I was sensing a disturbance in the whisker-force. Now I know why.

Physicsteacher

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Re: Two new cars? Am I crazy?
« Reply #22 on: March 31, 2020, 11:55:48 AM »
If your wife must drive in many different areas without cell phone reception so a dedicated navigation system is a priority, get her a Garmin with lifetime maps for $125. Otherwise $15 max for a phone holder should get the job done. No need to take on 84 months of payments.

Malcat

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Re: Two new cars? Am I crazy?
« Reply #23 on: March 31, 2020, 11:57:43 AM »
If your wife must drive in many different areas without cell phone reception so a dedicated navigation system is a priority, get her a Garmin with lifetime maps for $125. Otherwise $15 max for a phone holder should get the job done. No need to take on 84 months of payments.

Yep, love my Garmin that sits in my glove compartment for years unused and then totally saves my ass when I'm lost in the middle of nowhere and my phone doesn't work.

GreenToTheCore

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Re: Two new cars? Am I crazy?
« Reply #24 on: April 01, 2020, 01:19:14 PM »
If your wife must drive in many different areas without cell phone reception so a dedicated navigation system is a priority, get her a Garmin with lifetime maps for $125. Otherwise $15 max for a phone holder should get the job done. No need to take on 84 months of payments.

Heads up, you can generally download Google Map areas for offline use. Definitely helps in foreign country travel and low signal areas. Also good for saving battery life.
https://support.google.com/maps/answer/6291838?co=GENIE.Platform%3DiOS&hl=en

JLee

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Re: Two new cars? Am I crazy?
« Reply #25 on: April 01, 2020, 03:17:34 PM »
A new Jeep is going to depreciate like a rock.

Case

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Re: Two new cars? Am I crazy?
« Reply #26 on: April 04, 2020, 09:24:30 AM »
What are peoples thoughts on taking advantage of some of the current car loan "deals"?  A lot of incentives are available right now due to Covid19. 

Current cars
2012 Ford Fusion, owe $0
2018 Hyundai Santa Fe Sport, owe $3500, payment $350/mo

I was looking at the 2020 Jeep Compass.  Sticker price of $31K with internet price of $25k (loaded) and 84 months 0% interest.  I should be able to get about $20k total for tradein's. 

I'd be financing about $30k for 84 months at 0 interest=$360 per month for 2 new cars.

There is nothing wrong with the fusion (my car).  My wife bough the Santa Fe used for a good price.  I didn't like the choice because it was the base model and she is used to more features but she wanted something with low miles and settled on this.  Now shes already hinting about something with navigation because she is getting a new job that will require some travel.

Crazy and wasteful.

2Birds1Stone

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Re: Two new cars? Am I crazy?
« Reply #27 on: April 04, 2020, 10:16:27 AM »
This has to be someone yanking our chain, right?

No one could be that s.....

HotTubes

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Re: Two new cars? Am I crazy?
« Reply #28 on: April 04, 2020, 06:06:28 PM »
I own a Jeep and a Fiat - wish me luck!

marty998

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Re: Two new cars? Am I crazy?
« Reply #29 on: April 04, 2020, 08:09:24 PM »
Never mind.  Ban me.

Remember the good old days when we would tell people to buy a bicycle?

I miss that.

Syonyk

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Re: Two new cars? Am I crazy?
« Reply #30 on: April 05, 2020, 09:54:04 AM »
Remember the good old days when we would tell people to buy a bicycle?

I miss that.

Yup.  I miss that age of this forum too.  It had a few blind spots, leaning far more urban/suburban than rural, but it was a good sanity check on most ideas, and even if one was going a non-forum-standard path, there were usually enough counterpoints to help influence ideas and decisions.  Plus, as you note, an awful lot more facepunches.  A new car to get offline navigation?  Facepunch worthy.  Buying a new car to replace a car that needs $1000 of work (half of which you can do yourself if you are willing to get dirty)?  Facepunch.  Fix the car and buy a bicycle.  Etc.

It's lot a lot of what made it an interesting place for discussion.  Now, it's increasingly feeling like just another forum.  Technology will solve everything, newer is self evidently better than older (because it's newer), and you can buy your way out of any problem you might have (let's save the planet from problems caused by consumption by consuming more, yay!!!!).

I suppose it's to be expected, when the founder is loaded and talks more about his battle to not buy a Tesla and such.  It's just no longer an interesting corner of the internet, filled with people who are going to challenge your "consumer sukka" nature.  Probably also a result of people simply being more wealthy, and the little stuff doesn't matter as much anymore - yes, saving $2 is nice, but... if you're worth half a mil, well, matters less than if you're worth -$150k.  Still.  Two new Jeeps?  wtf.

marty998

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Re: Two new cars? Am I crazy?
« Reply #31 on: April 05, 2020, 03:26:33 PM »
Remember the good old days when we would tell people to buy a bicycle?

I miss that.

Yup.  I miss that age of this forum too.  It had a few blind spots, leaning far more urban/suburban than rural, but it was a good sanity check on most ideas, and even if one was going a non-forum-standard path, there were usually enough counterpoints to help influence ideas and decisions.  Plus, as you note, an awful lot more facepunches.  A new car to get offline navigation?  Facepunch worthy.  Buying a new car to replace a car that needs $1000 of work (half of which you can do yourself if you are willing to get dirty)?  Facepunch.  Fix the car and buy a bicycle.  Etc.

It's lot a lot of what made it an interesting place for discussion.  Now, it's increasingly feeling like just another forum.  Technology will solve everything, newer is self evidently better than older (because it's newer), and you can buy your way out of any problem you might have (let's save the planet from problems caused by consumption by consuming more, yay!!!!).

I suppose it's to be expected, when the founder is loaded and talks more about his battle to not buy a Tesla and such.  It's just no longer an interesting corner of the internet, filled with people who are going to challenge your "consumer sukka" nature.  Probably also a result of people simply being more wealthy, and the little stuff doesn't matter as much anymore - yes, saving $2 is nice, but... if you're worth half a mil, well, matters less than if you're worth -$150k.  Still.  Two new Jeeps?  wtf.

Oh god the constant Tesla "product placement" has been terrible for mixing the message. Basic concepts like a millionaire being made $10 at a time, and the real cost of commuting have been forgotten. Lost to the sands of time it seems.

OP - To answer the question in your heading - yes, yes you are crazy to spend $60,000 on vehicles. You're intentionally making yourself poor for the foreseeable future for...what exactly?

HotTubes

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Re: Two new cars? Am I crazy?
« Reply #32 on: April 06, 2020, 10:33:27 AM »
I understand those who think this is a less useful forum than in the past - I can't speak to that, but it certainly has made me far more aware of my spendy ways, and I'm currently putting together a plan to keep my current cars for many years, when I used to buy new cars all the time.

So, I hope you all stick around and keep teaching us


v8rx7guy

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Re: Two new cars? Am I crazy?
« Reply #33 on: April 06, 2020, 11:53:49 AM »
You're intentionally making yourself poor for the foreseeable future for...what exactly?

The navigation option!