Paid off the car!

[SavingMon(k)ey]

Today I went to the bank and just paid off my stupid, stupid car loan 2 years early. I had the money saved up as part of my emergency fund (thanks to MMM kick in the pants two years ago I have one of those now) and just decided to do it. I'm losing my job in August, so shrinking the emergency fund felt a little scary, but not having that payment hanging over my head feels... glorious!

It was the only time I've had a loan in my life (other than a mortgage or a small loan from a family member with no interest) and I shall never make that mistake again. So. Stupid. The only sort of good thing that came from it was a bit of credit history building that helped me when we got our mortgage.

For now I'll keep the car. Not the most mustachian (2009 Subaru Impreza hatchback), but I use that awesome cargo space like a freakin' truck! Trying to convince the wife to go with just one car, but she's not buying it (yet). I may not be completely ready for that, either. I just calculated that I've been driving an average of 7000 miles/year. My goal is to slash that into at least half this year.

[Mrs. D.]

Good for you! One less piece of negative debt baggage. Good luck cutting the driving next year.

[elvizzle]

That's awesome!   I still have 2 years left on the loan of my car, but with an APR of 1.9%, it's hard to pay it off.

[Mrs.LC]

Good for you! Start keeping a log of the times when you actually need two cars. If you can show the Mrs. hard facts that having two cars isn't necessary it might be an easier sell.

[nereo]

Bravo!

My SO and I went from two cars to one a few years ago before we got married, and she was hesitant at first, mostly at loosing some perceived 'autonomy'.  Since ditching the second car it's been the biggest non-issue.  Even I've been shocked at how easy it has been.  When you don't have the option of driving to two different places at the same time your behavior just shifts so that you never try to do that.  At least that's what happened with us - if you're driving <7,000mi/year you're probably pretty much there anyway.  PM me if you want more details.

[Lady Fordragon]

Bravo!

My SO and I went from two cars to one a few years ago before we got married, and she was hesitant at first, mostly at loosing some perceived 'autonomy'.  Since ditching the second car it's been the biggest non-issue.  Even I've been shocked at how easy it has been.  When you don't have the option of driving to two different places at the same time your behavior just shifts so that you never try to do that.  At least that's what happened with us - if you're driving <7,000mi/year you're probably pretty much there anyway.  PM me if you want more details.

Totally agree!  My husband and I have been a one car household for a little over 2 1/2 years now (right around the time we got married as well) and I got to say that at first it seemed challenging, but now we couldn't be happier with our decision.  You definitely get better at planning your days to accommodate for each other's plans.

BTW, great job at paying off your loan, SavingMon(k)ey!  There's nothing like the feeling of paying off debt.  Good luck with convincing your wife of the benefit of a one car household!

[SavingMon(k)ey]

Good for you! Start keeping a log of the times when you actually need two cars. If you can show the Mrs. hard facts that having two cars isn't necessary it might be an easier sell.

That sounds like an excellent idea, hadn't thought of that. That will help me overcome my last little bit of resistance, as well!

[Candace]

Congratulations! I know it feels great not to have a car payment. I haven't had one since about 1993 (bought one car for cash since then). That $300-$450 per month feels much better going into investments than it does going down the drain to a car loan.

So how are you going to direct the increased cash flow? Rebuild your emergency fund first? Then what?

[SavingMon(k)ey]

So how are you going to direct the increased cash flow? Rebuild your emergency fund first? Then what?

Good question. Definitely rebuilding the emergency fund first, since my job situation is uncertain after the next two paychecks. I may be taking a big pay cut at that point, so there may not be a whole lot left over for saving for a while. If there is, I would like to start funding retirement accounts and such. Will have to do some research on that. My focus so far has been on murdering debt and building an emergency fund. Suggestions welcome!

[Candace]

Sounds like a good idea.

Depending on how many miles are on your vehicle and how you've used it, you may want to look into making sure the usual wear items are replaced if they are worn. That kind of preventive maintenance can end up saving you money and trouble, if doing so avoids a bigger problem.

Good luck on the job change!

[dudde_devaru]

I love the subie hatch! How much real world mpg does it give? Just 7k miles in such a lovely car! Common man!

[SavingMon(k)ey]

I love the subie hatch! How much real world mpg does it give? Just 7k miles in such a lovely car! Common man!

About 23 mpg in the city, that's it. Highway on cruise control I get up to 35 mpg. I think the newer models, which have smaller engines, get better gas mileage.

I do like how versatile it is. But so is my bike, hence 7k mi/yr and shrinking! ;) It's just badassity, you know...