Author Topic: I need my annual punch in the face  (Read 4968 times)

Bearblastbeats

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I need my annual punch in the face
« on: February 04, 2016, 12:30:21 PM »
Firstly, I would like to mention I have passed my one year mark at my new job and with it came a significant raise. Yay me!

Secondly, I feel like being foolish and I am trying to resist the urge to spoil myself. I also have a birthday on Sunday and am turning 29 so I almost feel like I deserve something. Almost.

Scenario: I have a 2008 Subaru Impreza 2.5i sedan with 140,000 miles on it. I currently owe around $5,500 on the loan. With the age of the car, and the work I have put into it to date and now new work I am putting into it this weekend, I feel as if I should upgrade to a newer model (ouch). I project the car could make it another 140k miles with all the proper maintenance and fixing of whatever falls apart next.

The key reasoning behind my idea is that my job requires me to make site visits to jobs. Last year I put nearly 30k miles on the car. Since I all ready have a loan on an older car, why not just roll it over to something younger with less mileage.


My other option would be to pay off the car within the next 6 months or so and enjoy payment free living until I decide to purchase a house.

What say you good people of the MMM world?
« Last Edit: February 04, 2016, 12:33:03 PM by Bearblastbeats »

chris5977

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Re: I need my annual punch in the face
« Reply #1 on: February 04, 2016, 12:39:43 PM »
Yikes, where to begin...

1. You should not borrow money to buy cars.
2. Use your raise to pay that loan off ASAP.
3. Drive the Subaru until the wheels fall off.
4. Save 40% of your income.
5. When the Subaru finally dies buy a sensible car.
6. Read this http://www.mrmoneymustache.com/2012/03/19/top-10-cars-for-smart-people/
« Last Edit: May 26, 2016, 03:44:42 PM by chris5977 »

lbmustache

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Re: I need my annual punch in the face
« Reply #2 on: February 04, 2016, 12:55:53 PM »
Firstly, I would like to mention I have passed my one year mark at my new job and with it came a significant raise. Yay me!

Secondly, I feel like being foolish and I am trying to resist the urge to spoil myself. I also have a birthday on Sunday and am turning 29 so I almost feel like I deserve something. Almost.

Scenario: I have a 2008 Subaru Impreza 2.5i sedan with 140,000 miles on it. I currently owe around $5,500 on the loan. With the age of the car, and the work I have put into it to date and now new work I am putting into it this weekend, I feel as if I should upgrade to a newer model (ouch). I project the car could make it another 140k miles with all the proper maintenance and fixing of whatever falls apart next.

The key reasoning behind my idea is that my job requires me to make site visits to jobs. Last year I put nearly 30k miles on the car. Since I all ready have a loan on an older car, why not just roll it over to something younger with less mileage.


My other option would be to pay off the car within the next 6 months or so and enjoy payment free living until I decide to purchase a house.

What say you good people of the MMM world?

I am going to come in and ask... why do you owe $5,500 on an 8 year old car? An Impreza is not a $60k car, it's around $20k which leaves me wondering why the loan has been extended for so long or what is going on w/ your finances.

Is this car even worth $5500? So you'd potentially be taking negative equity into a new car loan?

The answer is NO to your question.

okits

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Re: I need my annual punch in the face
« Reply #3 on: February 04, 2016, 12:58:50 PM »
Err...  You need a car upgrade why?  You did explain in your OP that "well, I already have debt, why not make it worse?" but that's not actually a good reason.

Congrats on the work anniversary and the raise!  You can do yourself a lot of good by not blowing it (blowing it = stuff like unnecessary car upgrade.)

Kapiira

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Re: I need my annual punch in the face
« Reply #4 on: February 04, 2016, 01:03:18 PM »
Congratulations on the raise and happy birthday!  I think the second option is an excellent idea.  If you are really set on a new car you can start saving for it as soon as your old car debt is paid off.  Debt-free living for your 30th birthday is a much better gift than a new car for your 29th.

mm1970

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Re: I need my annual punch in the face
« Reply #5 on: February 04, 2016, 01:04:35 PM »
Firstly, I would like to mention I have passed my one year mark at my new job and with it came a significant raise. Yay me!

Secondly, I feel like being foolish and I am trying to resist the urge to spoil myself. I also have a birthday on Sunday and am turning 29 so I almost feel like I deserve something. Almost.

Scenario: I have a 2008 Subaru Impreza 2.5i sedan with 140,000 miles on it. I currently owe around $5,500 on the loan. With the age of the car, and the work I have put into it to date and now new work I am putting into it this weekend, I feel as if I should upgrade to a newer model (ouch). I project the car could make it another 140k miles with all the proper maintenance and fixing of whatever falls apart next.

The key reasoning behind my idea is that my job requires me to make site visits to jobs. Last year I put nearly 30k miles on the car. Since I all ready have a loan on an older car, why not just roll it over to something younger with less mileage.


My other option would be to pay off the car within the next 6 months or so and enjoy payment free living until I decide to purchase a house.

What say you good people of the MMM world?

I am going to come in and ask... why do you owe $5,500 on an 8 year old car? An Impreza is not a $60k car, it's around $20k which leaves me wondering why the loan has been extended for so long or what is going on w/ your finances.

Is this car even worth $5500? So you'd potentially be taking negative equity into a new car loan?

The answer is NO to your question.
The answer is no.  Kbb estimates that car is worth about $4500

rockstache

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Re: I need my annual punch in the face
« Reply #6 on: February 04, 2016, 01:11:58 PM »
You absolutely should spoil yourself for your birthday. With a brand new _______ that you have been wanting for a long time and is under $xx amount which fits into your budget. Not with a new car.

GuitarStv

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Re: I need my annual punch in the face
« Reply #7 on: February 04, 2016, 01:17:04 PM »
The correct item to fill in for "brand new _______  that you have been wanting for a long time" is BIKE.

rothwem

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Re: I need my annual punch in the face
« Reply #8 on: February 04, 2016, 01:18:04 PM »
You absolutely should spoil yourself for your birthday. With a brand new _______ that you have been wanting for a long time and is under $xx amount which fits into your budget. Not with a new car.

I thought the point of mustachianism is to not want material things, and avoid the hedonistic pleasure that comes from a new purchase. 

How about you reward yourself with a hike in a new park?  Or something else you like doing that doesn't cost money. 

Mr Z

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Re: I need my annual punch in the face
« Reply #9 on: February 04, 2016, 01:18:30 PM »
change your oil regularly and drive the car to death.

That will take quite many years because these cars last long.

I also own a 2008 Subaru.

Had I been thinking the same way 10 years ago at age 28 as now, I could quit my job today.

Parizade

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Re: I need my annual punch in the face
« Reply #10 on: February 04, 2016, 01:30:48 PM »
The key reasoning behind my idea is that my job requires me to make site visits to jobs. Last year I put nearly 30k miles on the car. Since I all ready have a loan on an older car, why not just roll it over to something younger with less mileage.

Have you asked your employer to supply you with a vehicle for these site visits? It doesn't hurt to ask, you might be able to get that shiny new car you want without the nasty debt. Happy Birthday to you!

If that doesn't work I concur with the others who say pay off the debt and drive the car till it dies. Maybe you could have the car detailed for your birthday treat so it feels shiny and new.

rockstache

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Re: I need my annual punch in the face
« Reply #11 on: February 04, 2016, 08:11:18 PM »

You absolutely should spoil yourself for your birthday. With a brand new _______ that you have been wanting for a long time and is under $xx amount which fits into your budget. Not with a new car.

I thought the point of mustachianism is to not want material things, and avoid the hedonistic pleasure that comes from a new purchase. 

How about you reward yourself with a hike in a new park?  Or something else you like doing that doesn't cost money.

Sure that works. I don't do much - if anything - for my birthday personally but if someone is feeling deprived, then I think they should do something about it. Something that fits in their budget. But I don't deprive myself if I want something I consider reasonable, so I'm probably not your prime example of a mustachian.

Rosy

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Re: I need my annual punch in the face
« Reply #12 on: February 04, 2016, 08:44:42 PM »
Absolutely - birthdays and everything else in life should be celebrated.

As far as replacing that 2008 Subaru - hell, no:) pay it off, treat it well and hang onto it. If work tells you it looks too old and ratty to be used for business, tell them to give you a rental for those business trips - everything is negotiable:) It will make your Subaru last longer which will make you richer.

Of course you will immediately re-direct that monthly car payment expense to fund your IRA/401K or bolster your emergency savings or whatever goals on your list have not been accomplished yet - right:)

Happy Birthday and if you really need a treat after that fabulous raise - pay off that car already - and - if you still need a temporary fix use the freed up money for a weekend trip-get away. Then get back on the mustachian bandwagon. A little blip in the finances is much easier to deal with than immediately indenturing yourself for another three or five years - use your common sense, it is why you came here in the first place.

tobitonic

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Re: I need my annual punch in the face
« Reply #13 on: February 04, 2016, 08:48:54 PM »
As pretty much everyone else has said, pay it off and maintain it.

And when it dies, replace it with something more reliable like a Toyota or Honda.

tj

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Re: I need my annual punch in the face
« Reply #14 on: February 04, 2016, 08:52:18 PM »

You absolutely should spoil yourself for your birthday. With a brand new _______ that you have been wanting for a long time and is under $xx amount which fits into your budget. Not with a new car.

I thought the point of mustachianism is to not want material things, and avoid the hedonistic pleasure that comes from a new purchase. 

How about you reward yourself with a hike in a new park?  Or something else you like doing that doesn't cost money.

Sure that works. I don't do much - if anything - for my birthday personally but if someone is feeling deprived, then I think they should do something about it. Something that fits in their budget. But I don't deprive myself if I want something I consider reasonable, so I'm probably not your prime example of a mustachian.

Mustachianism is not about spending as little $$$ as possible. It's about focusing your spending on what you value. If you value a new car, then so be it. That being said, oweng $5k on a 8 year car is not a good omen to be taking on more debt.

See ThriftyGal's most recent post:

http://thepowerofthrift.com/spending-habits-draining-net-worth/

and MMMs's

http://www.mrmoneymustache.com/2014/11/23/not-extreme-frugality/

Retire-Canada

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Re: I need my annual punch in the face
« Reply #15 on: February 04, 2016, 09:09:25 PM »
Firstly, I would like to mention I have passed my one year mark at my new job and with it came a significant raise. Yay me!

Secondly, I feel like being foolish and I am trying to resist the urge to spoil myself. I also have a birthday on Sunday and am turning 29 so I almost feel like I deserve something. Almost.
What say you good people of the MMM world?

First congrats on the raise!

Second yes you deserve a treat for your birthday. Go out for a nice meal. Buy some beer or wine or pot or whatever you enjoy celebrating with at home. If there is some luxury item you've wanted, but haven't bought...ie. video game or tech gadget or something you can buy at an extravagant, but not stupid cost that fits your budget go for it.

Not new car extravagant though. Just pay off the current car and keep driving it.
« Last Edit: March 09, 2016, 11:19:02 AM by Retire-Canada »

neo von retorch

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Re: I need my annual punch in the face
« Reply #16 on: February 05, 2016, 07:40:33 AM »
It looks like you're young and have the advantage of time ahead of you. All I can do is tell you what it's like to be old (OK I'm 36, ha!) and read about MMM retiring by now, and knowing I've got another 8 years (give or take...) before I can consider myself FI enough to really control what I do with my time... and think "wow, if I had known this when I was in my low 20s, I could've done things a bit differently." It didn't seem like much to spend $10k on a car and let that $300 slip out the window each month (of course I didn't realize how much I could've saved on insurance, too...) but looking back, it all adds up. Cable bills, cell phone bills, car payments, computer parts and video games... all fun things (or payments for fun things) but then I remember my '83 Cavalier wagon and think, geez, some of my most fun times were in that car which cost me $200 plus a few parts! You're on this forum for a reason - to be enlightened, to make decisions most folks aren't wise enough to make. What will you do with that?

ohana

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Re: I need my annual punch in the face
« Reply #17 on: February 05, 2016, 07:51:36 AM »
Gotta agree with people; this is silly.  The car still works fine, right?  Or is fixable, right?

Pay off your loan.  If you could be $500/month, it would be done in 11 months!  Easy.  Then save up for another (not new, but almost new) car.  Buy it outright if you can.  Nothing will feel better than not having to borrow money.

And aren't you getting mileage for your driving?  You should be putting that into a fund just to replace this car.

matchewed

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Re: I need my annual punch in the face
« Reply #18 on: February 05, 2016, 07:52:17 AM »
So you've got a vehicle that you already still owe money on that will last for at least two more years with your 30k/year and you want to buy a car why? Because you want to treat yourself? Do you often treat yourself with $20k purchases? You may be in the wrong forum. ;)

Look you already know it's stupid. Otherwise you wouldn't have titled the thread as such. You don't need our validation to make the right choice. Just make the right choice for you. Don't let desire for some random ass concept like "treat myself nice for my birthday with $20k purchases" guide your life. That isn't to say that you can't treat yourself; it's just to say that you're probably doing it wrong if you're doing it that way.

Bearblastbeats

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Re: I need my annual punch in the face
« Reply #19 on: February 05, 2016, 08:51:13 AM »
I know it's stupid. I was merely testing the waters. I've been paying about 400/wk on it for a few months now and project to pay it off in about three months.

Other than rent, electricity, and internet, this is the only bill I have left. On the up and up.


OmahaSteph

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Re: I need my annual punch in the face
« Reply #20 on: February 05, 2016, 10:38:39 AM »
I know it's stupid. I was merely testing the waters. I've been paying about 400/wk on it for a few months now and project to pay it off in about three months.

Other than rent, electricity, and internet, this is the only bill I have left. On the up and up.

Perhaps splurge on getting the car detailed or buy the supplies and do it yourself. Make it look new and smell new, without the added cost. Oh, and fuzzy dice or a hula girl for the dashboard. :)

Happy birthday!

tomorrowsomewherenew

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Re: I need my annual punch in the face
« Reply #21 on: February 05, 2016, 11:21:15 AM »
Isn't this a car that gets 20mpg? And require premium? At $1.50 for a gallon of regular, I say keep it. If we venture into $4+ territory (for premium) then I think switching out for something else could make sense.