Author Topic: Resisted the Urge (and Pressure) to Overspend on a Vehicle  (Read 2466 times)

cysewr

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Resisted the Urge (and Pressure) to Overspend on a Vehicle
« on: March 08, 2019, 09:37:52 AM »
Hi there! So, I had been driving a 1998 Honda Civic since 2007, and it was up to 245k miles. It was getting to the point where I was sometimes a bit embarrassed to drive it to social gatherings, even though it was still quite economical to drive. Additionally my parents would regularly pressure me to ďget something nicer,Ē which to them meant a < 4 year old car in the $15-20k range, preferably something brand new (my sister just dropped $30k+ on a new Jeep last year, and they thought that was a good decision).

Anyways, so I ended up scouting Craigslist for a couple months, and eventually bought an immaculate 2008 Honda Accord LX-P with 78k miles for $6900, with the cash I had been setting aside for a vehicle over the last couple years. Maybe itís not quite badass, since the fuel economy isnít the greatest, and my other car still had life in it (sold it for $1300), but I feel really good about the fact that I was able to navigate getting a new vehicle without succumbing to the idea that I needed something that would put me in debt, or compromise my other financial goals. Plus, this frees up additional money going forward to put in my 401(k).

It feels very odd for me to brag about something like this on an online forum, but I figured if anyone would understand, you guys would :-)

FIRE@50

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #1 on: March 08, 2019, 09:50:38 AM »
Nice work! Enjoy the new larger luxury sled. :)

Alternatepriorities

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #2 on: March 08, 2019, 10:32:39 AM »
What? Didn't you get the memo that you're supposed to sign up for 70 months of $550 a month when you buy a car?   

https://forum.mrmoneymustache.com/antimustachian-wall-of-shame-and-comedy/why-americans-are-suddenly-paying-$550-per-month-for-new-cars/msg2316581/#msg2316581

Congratulations on your wise choice.

nancy33

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #3 on: March 11, 2019, 08:46:38 PM »
Sounds like a great choice! Enjoy

Daniel Baksley

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #4 on: March 12, 2019, 03:26:14 AM »
Wow, great story! Enjoy!

EngagedToFIRE

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #5 on: March 12, 2019, 09:36:05 AM »
Next stop, bicycle!

cysewr

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #6 on: March 12, 2019, 11:45:56 AM »
Thanks for the kind words! This was a decision I struggled with, especially seeing others I know getting expensive vehicles. There were a few times where I almost gave in to the urge to buy something over 2x the price of what I ended up with, but Iím glad I didnít.

cysewr

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #7 on: March 12, 2019, 11:47:21 AM »
Next stop, bicycle!

Haha! I live 1.5 miles from work, and am looking forward to getting a bicycle once the snow melts for my in town trips.

meatgrinder

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #8 on: March 12, 2019, 02:51:02 PM »
Congrats on your discipline.  I, however, have just succumbed to pressure and bough a vehicle type that I and not fond of....an SUV.  Please forgive me for my sins.  I held out as long as I could with my 95 camry/220K miles and 03 accord/160K miles.  Both bought used and great cars. 

My wife's constant badgering for an SUV finally made me crack.  At least it was a used SUV and we paid with cash. Now I get to watch it slowly depreciate over a period of 20 years and think how much it would be worth if I had instead invested it in VTSAX.

EngagedToFIRE

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #9 on: March 12, 2019, 04:56:33 PM »
Next stop, bicycle!

Haha! I live 1.5 miles from work, and am looking forward to getting a bicycle once the snow melts for my in town trips.

That's a no brainer then.

Peer pressure is a bitch, isn't it?  I have a bit of a contrarian personality, so when I see everyone buying nice cars, I get the feeling that I want a shitty car.  I don't want to be part of the crowd, so to say.  It's also a good feeling knowing you are "in the know" about saving and finances.  When I ride my bicycle to work sometimes, I get a kick out of all the people speeding around rushing to work, so they can then rush home and rush to the $40/mo gym to spend another hour.  Burning their dollars and precious time.   It's a good feeling to have "figured it out."

The parking lot of almost any office is one of the saddest places for someone who cares about personal finances.  It's a wasteland of bad decisions.  You are smarter than your peers, way to go!

happyuk

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #10 on: March 25, 2019, 02:12:29 PM »
Hi there! So, I had been driving a 1998 Honda Civic since 2007, and it was up to 245k miles. It was getting to the point where I was sometimes a bit embarrassed to drive it to social gatherings, even though it was still quite economical to drive. Additionally my parents would regularly pressure me to ďget something nicer,Ē which to them meant a < 4 year old car in the $15-20k range, preferably something brand new (my sister just dropped $30k+ on a new Jeep last year, and they thought that was a good decision).

Anyways, so I ended up scouting Craigslist for a couple months, and eventually bought an immaculate 2008 Honda Accord LX-P with 78k miles for $6900, with the cash I had been setting aside for a vehicle over the last couple years. Maybe itís not quite badass, since the fuel economy isnít the greatest, and my other car still had life in it (sold it for $1300), but I feel really good about the fact that I was able to navigate getting a new vehicle without succumbing to the idea that I needed something that would put me in debt, or compromise my other financial goals. Plus, this frees up additional money going forward to put in my 401(k).

It feels very odd for me to brag about something like this on an online forum, but I figured if anyone would understand, you guys would :-)

I absolutely understand.  Well done.

I did something similar in 2016, when it was time to get another car, I plumped for a 2007 Toyota Yaris with ~48,000 miles on the clock for about £4000 ($5300), which I drive happily and problem free today.

When I explained what I did to a colleague, that I had bought a car with cash without taking out loans he seemed quite taken aback that I was talking in such a matter of fact way, no different from making any other purchase.   The money was already available, and was being constantly added to for each year I managed to squeeze out of the old car, so that when the time came to replace it it was no big deal.  Different mindsets I guess.

happyuk

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #11 on: March 25, 2019, 02:20:33 PM »
A TERRIBLE anecdote I heard from one of my clients recently. 

A contractor, who had recently had his contracted extended, decided to celebrate by blowing over £70,000 on a Tesla Model X/Y/Z something or other.  This is a guy with a young family who has yet to pay off his house by the way.  These are not my people.

AlotToLearn

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #12 on: April 02, 2019, 05:52:06 AM »
There are in fact people whose car payments are more than their house payments in 2019.

GreenEggs

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #13 on: April 03, 2019, 05:48:25 AM »
There are in fact people whose car payments are more than their house payments in 2019.




"No payment" is the best payment. 


When you hear how much the monthly payments are that some people have for their cars & their homes it's surprising the sucicide rate isn't higher.  And on top of that their credit cards are maxed out!  Talk about self-enslavement.  It's such a depressing and sad way of life for millions of our neighbors. 


It's funny how the less you need a loan, the higher your FICA score is.  I hadn't looked at mine in years and happened to see a "credit check" tab on my bank balance web page, out of curiousity I clicked it.  I was pleasantly surprised to find it was over 40 points higher than I guessed it was. 


That's what you get for not having a lot of payments.  ;)

EngagedToFIRE

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #14 on: April 03, 2019, 06:20:15 AM »
There are in fact people whose car payments are more than their house payments in 2019.




"No payment" is the best payment. 


When you hear how much the monthly payments are that some people have for their cars & their homes it's surprising the sucicide rate isn't higher.  And on top of that their credit cards are maxed out!  Talk about self-enslavement.  It's such a depressing and sad way of life for millions of our neighbors. 


It's funny how the less you need a loan, the higher your FICA score is.  I hadn't looked at mine in years and happened to see a "credit check" tab on my bank balance web page, out of curiousity I clicked it.  I was pleasantly surprised to find it was over 40 points higher than I guessed it was. 


That's what you get for not having a lot of payments.  ;)

I haven't cared about a FICA score for the better part of a decade.  I should log in to one of my cards and just see what it is, though.  Lol.  When you have no debt and money in the bank, who cares about FICA!

NorthernMonkey

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #15 on: April 03, 2019, 06:21:55 AM »
Ever since I paid off all my debt including my mortgage, my credit score has been stupidly high. I have no idea why. I've had no credit for 18 months now

MrSal

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #16 on: April 03, 2019, 07:24:22 AM »
Congrats on your discipline.  I, however, have just succumbed to pressure and bough a vehicle type that I and not fond of....an SUV.  Please forgive me for my sins.  I held out as long as I could with my 95 camry/220K miles and 03 accord/160K miles.  Both bought used and great cars. 

My wife's constant badgering for an SUV finally made me crack.  At least it was a used SUV and we paid with cash. Now I get to watch it slowly depreciate over a period of 20 years and think how much it would be worth if I had instead invested it in VTSAX.

My wife was the same. SUV because of... snow even though we don't get that much snow. She grew up where SUV meant "safe". Even nowadays if we go for a trip, such as 200 miles away or something, the first thing her mother says is that we shouldn't take the Jetta ( WTF) and instead take her car or something - a 4Runner.

This winter, we took her SUV and my Jetta out during a snow day, we went to the HS parking lot. We did several tests under 5 inches of unplowed snow and slush as well. We did braking tests, doughnuts, circles and everything. At one point she ended up in the ditch of the parking lot with her SUV because she kept losing control. On my Jetta, even when trying to lose control, I/she couldn't. - I have Blizzaks on it. She was a believer then and she agrees now. Might be worth a shot.

The most eye opening test is the braking distance. At 30 mph her car only stopped about 3x the distance mine took to stop. Imagine that on the road when stopping or not stopping could mean the difference between a crash or not a crash, life vs death.

AlotToLearn

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Re: Resisted the Urge (and Pressure) to Overspend on a Vehicle
« Reply #17 on: April 04, 2019, 01:59:40 AM »
As I posted in one of my first entries since joining, I am approximately 5k upside down on a car I should not have bought in the first place. Thankfully I will be able to dig myself out of this mess rather soon, and am replacing a 35k debt with a reliable 5 model year old Toyota Camry a buddy is getting from the auction (he buys cars there).

I mentioned that some people have car payments that approach their house payments and see no problem with it, and that is scary. A couple people at my job drive very nice Range Rovers, roughly 90k purchase price (900 car payment) and rent a place for roughly 1500/mo. That of course doesnt include the student loan and cc debt.

Negative net worth and clueless that their is any problem.