We have not had a car payment in 5 years, I didn't really want one, but our cars are just piles of junk. We've been driving a free car from our friend, which runs, but it an 89 chevy station wagon that is old and really cruddy. One of our local dealers is going out of business/changing owners, so they were having a HUGE sale. Dh and I went in with no expectations, although we sorely need a new car, but we were not in desperation mode(because we had 3 crappy cars).
We had a trade-in and no money down, we have some cash, but it is reserved for our emergency fund. Our trade-in was our paid off 11 y/o Buick, they first wanted a ridiculous term, and we were ready to walk. We stuck to our guns of $200 payment and we got it, got our $500 trade-in for our car, BB was $600. The car is a 2007 Ford Taurus SE-preferred, which is a former rental(just like our old car), 38,000 miles and was 10,995. BB on this model is 11, 500. so we got it for book value. It could have been 1,000 cheaper if we'd bought it privately. Whatever. I have no buyer's remorse and am completely happy, it is a Consumer Reports car pick and has a great carfax. Plus I feel safe, it has LATCH, room for 2 car seats and is just nice.
Our plan is to pay it off in 3 years, we have 5, but the plans are to take any extra and put in this car. We also got GAP insurance for $3 a month, we are very happy and even though I detest car payments it was the nicest, mellowest car buying experience ever. Taking on more debt is always icky, but in our position it was kinda necessary. Our debt is one CC, car payment and mortgage, not that bad. Plus it is a car buyer's market-if you can get financing or better yet have the money there are deals to be had.
Anyway that's my story.
We had a trade-in and no money down, we have some cash, but it is reserved for our emergency fund. Our trade-in was our paid off 11 y/o Buick, they first wanted a ridiculous term, and we were ready to walk. We stuck to our guns of $200 payment and we got it, got our $500 trade-in for our car, BB was $600. The car is a 2007 Ford Taurus SE-preferred, which is a former rental(just like our old car), 38,000 miles and was 10,995. BB on this model is 11, 500. so we got it for book value. It could have been 1,000 cheaper if we'd bought it privately. Whatever. I have no buyer's remorse and am completely happy, it is a Consumer Reports car pick and has a great carfax. Plus I feel safe, it has LATCH, room for 2 car seats and is just nice.
Our plan is to pay it off in 3 years, we have 5, but the plans are to take any extra and put in this car. We also got GAP insurance for $3 a month, we are very happy and even though I detest car payments it was the nicest, mellowest car buying experience ever. Taking on more debt is always icky, but in our position it was kinda necessary. Our debt is one CC, car payment and mortgage, not that bad. Plus it is a car buyer's market-if you can get financing or better yet have the money there are deals to be had.
Anyway that's my story.
:
I normally make out the check for the late payment amont. This way if for some reason it does come late I am covered. I do also write, "apply over payment to principle". Congrats! My previous vehicle was complete buyers remorse. Don't get me wrong I loved it.... hated the $400 payment. This time I only have a $250 payment way better..... now to pay it off!
