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So we bought a car and I am happy

post #1 of 12
Thread Starter 
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.
post #2 of 12
:
post #3 of 12
Congratulations!

We spent more money on our paid off cars due to all the repairs they required than we have on our car payment since we bought a 'new' car. (it was used) We traded in our two crappy, broken down cars for a nice, reliable, clean car. Best decision we ever made! I was tired of pouring money into the other two cars.
post #4 of 12
Congrats!

Our first "married" car was a used 2000 Ford Taurus SES and we love it. Lots of trunk and back seat room. It is dh's car now and it still running strong.
post #5 of 12
my dad has had only ford taureses since 1989 and they have been great cars!
post #6 of 12
Thread Starter 
Yeah we are very happy with it. My old car's door fell apart yesterday. I guess we need a new door. I just was sick of worrying. Sometimes taking on a debt isn't so bad. We got the terms we want, no prepayment penalty, so we will just pay extra when we can.

Plus I know our family will be safe.
post #7 of 12
Timely Post. LOL. My DH's car decided to crap out yesterday, seat broke and couldn't be fixed. It was an electric seat. Front quaurter panel was gone, brakes were bad, ran like crap so we traded it in. We ended up with 2009 Ford Fusion.
post #8 of 12
I also bought a new(to me) car, a Corolla 06. It was in great condition and only $9k. I really needed a new car, because my 10 year old Mirage died. For work I HAD to have a car, so every day I was sitting at home with no car, I was losing money.
post #9 of 12

Make sure if you are paying extra each month, that the money goes towards the principal on the loan.

Most car loans are based on a three, five or even seven year term. The purchase price is calculated with the interest over the entire term of the loan, THEN broken down to equal monthly payments. You don't want to be paying back interest on a loan that you intend to pay off early. So...make sure the finance charges are recalculated over the new term and principal balance.
post #10 of 12

!

Quote:
Originally Posted by kaper View Post
Most car loans are based on a three, five or even seven year term. The purchase price is calculated with the interest over the entire term of the loan, THEN broken down to equal monthly payments. You don't want to be paying back interest on a loan that you intend to pay off early. So...make sure the finance charges are recalculated over the new term and principal balance.
Good point! 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!
post #11 of 12
....

Edited by 1babysmom - 3/15/13 at 8:58pm
post #12 of 12
Thread Starter 
Quote:
Originally Posted by kaper View Post
Most car loans are based on a three, five or even seven year term. The purchase price is calculated with the interest over the entire term of the loan, THEN broken down to equal monthly payments. You don't want to be paying back interest on a loan that you intend to pay off early. So...make sure the finance charges are recalculated over the new term and principal balance.
Oh I know I make sure of that, just like the extra I pay on our house.
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