I’ll file this post in the category “because having a baby isn’t expensive enough”…
Know how I mentioned that my husband and I prefer to buy new or nearly new cars, ride them into the ground, and start over? Well, I might not have been crystal clear that our definition of “riding them into the ground” is a bit lazy. We like to ride them for 9-10 years and move on when the first big repair pops up so we don’t have to handle the little car errands that tend to happen in a vehicle’s “second life”.
For example, my 2005 Chevy Aveo only had 63,000 miles on it in 2014 when I sold it, but it was going to need a new engine in a year or two because of how crappily that car was made. I sold it on Craigslist for $3400 and bought a new 2013 Honda Fit for $16,400 drive out on a 5 year loan at 0.9% (no money down). I still have 13 payments or so left on it. Our savings accounts are making 1% by themselves, so I don’t feel the need to rush on paying off the remaining loan.
Len’s 2007 Toyota Prius just crossed our line 2 weeks ago too. It had 178,000+ miles and needed a new brake actuator for $2300 (or for us to be comfortable only having regular brakes and no anti-lock brakes). So, we ended up buying a new 2017 Toyota Prius at $28,250 drive out on a 6 year loan at 0% (no money down). And I sold the old Prius for $2200 3 days after listing it.
Using My Own Advice
Funniest part? I used my own post to remind myself how to properly sell a car on Craigslist, lol. Heck, I look up my own recipe posts too. This whole blog seems to exist so I don’t have to suffer because of my bad memory.
The end result of all of this is that we’re now paying two car payments every month though. $278 for my Fit and $392 for hubby’s Prius. Meh. It makes no sense to pay them off early, although throwing the down payment money we had saved towards our 4% mortgage is sounding good to me…
NO. No, Crystal. I hate paying interest, but I am popping out my own mini-human in less than 5 months. We should keep as much cash on hand as we can. I’m going to slap my hands away from our cash reserves for at least the rest of this year. We’ll see what happens in January 2019 though…
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!