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In my case, my wife drives the newer car while the older vehicle gets run in the ground by me. When my car becomes too much of a problem it gets traded in on a new model which my wife gets. Then her car becomes mine and the whole cycle starts over again.
By the way, we put 100$'s a week in the credit union, when a new car is needed we pay cash, don't be fooled, cash sales can demand a steep discount when done correctly.
I find this to be the case as well. Most famalies I know, including mine, the husband drives the crappy beater and the wife drives the nice car. My wife even works from home yet drives the nicer car.
I think it has more to do with men typically understanding the value of a dollar while women do not and think money is a renewable resource. I'm not saying all women are like that but quite a few are. So the husband does everything he can to save money because the wife does everything she can to spend it .
It can't be that hard to get an A in underwater basketweaving or an A in spending their significant others money.
Gosh, I should have majored in those things instead of a science major, working my tail off publishing scientific papers my whole career, and paying half our bills, even when I stayed home for 3 years with my son (I paid half the rent out of my savings).
What a dummy I was, working hard in graduate school and paying my own way when I could have majored in spending someone else's money!
- Buy $40k car, trade in for new $40k car every 5-6 years.
- Your payment may average $450/month EVERY month
- Over 24 years that is $130,000 plus growth/opportunity cost as the money accumulates
Let’s call it $200,000. Now add in the additional costs of full coverage insurance for all 24 years (plus growth/opportunity cost). Now add in the additional property tax one will pay for 24 years (plus compounded growth/opportunity cost).
Now how much does having that constant car payment really add up to over the course of a looong period of time like 24 years? Close to $250,000? After all that money is shelled out, what are you left with? A car worth $12k?
Now how much does swapping cars every 12 years cost? Well, you pay $40k for your original car and $37k for the 2nd (original worth $3k). After 24 years you are out $77k (plus interest on the loans if taken) and you are left with a $3k car. Total expenditure: $74k for 24 years of driving.
Constantly driving the new car cost you about $175k more. Could you use that money? I think I could use it to make my life a lot less stressful than the stress I encounter over the unreliability of a 12 year old Toyota (which in all likelihood is rock solid).
Using this rough math, it’s easy to see why some frugal people take things a step further and drive ONE car for 24 years. $40k. That’s it. CHEAP. Granted, this case would take some luck, dedicated maitanence and the will power to delay gratification a long time. Plus paying for repairs (some possibly major). 15k miles/year for 24 years? Possible? Well, my aunt started driving later in life - her first car was a 1995 Corolla (bought in 94) which was nearly the base model aside from being automatic. She loved that car and took incredibly good care of it. She worked a steady buy not high paying office job and lived with her parents so she could’ve paid cash for a $300k car if she got an insane itch. THAT 23 yr old car was sold last year with 350k miles and replaced by a shiny new 2018 Corolla which will likely be the last car she ever buys. So relatively speaking, did she really suffer that much driving a 1995 Corolla? Nope, she simply wanted something to take her to work and occasionally carry passengers. Heck, I’d drive a clean well maintained 1995 Corolla NOW for 99% of my driving. Skimping out on what some claim to be necessary made the difference in her retiring relatively comfortably or just being someone working at 60-65 hoping they will scrape by on SS.
Last edited by eddiehaskell; 10-13-2018 at 09:34 PM..
It can't be that hard to get an A in underwater basketweaving or an A in spending their significant others money.
Quote:
Originally Posted by wheelsup
I think it has more to do with men typically understanding the value of a dollar while women do not and think money is a renewable resource. I'm not saying all women are like that but quite a few are. So the husband does everything he can to save money because the wife does everything she can to spend it .
Wow. This is crazy. Do you guys really believe this crap?
Not really much of a risk to only have liability on a car worth $10k. By that point you’ve saved enough money by driving the older car to pay cash for another in similar condition (or put the money toward another new car). There’s a tiny gamble that your car gets totaled and you lose a little money (but you’ve still saved overall) between what you owe and what the car is the worth. But as another poster pointed out, the odds of a accident happening resulting in a totaled car are rare. You could NOT say the same about health insurance as the cost are not at a fixed limit.
I’m at a loss for your financial mathematics that have the money saved by not making a payment all being spent later, thus cancelling out the burden of the payment you would’ve otherwise made every month for life.
The more broke you are, the more it makes sense to make a car payment and all the associated costs? Lord bless his little heart.
I’m not a math teacher so I’m not working for free here, lol. Somebody step in and tag me out............
You can’t be that naive.
Do you think everybody driving a busted old car has $50k in the bank from savings from driving that busted car? No. Most people driving an old $2k car is because that’s all they can afford, they’re not doing it by choice. They’re the least prepared for unanticipated large expenses. Whenever you look at statistics trying to figure out if you can dump insurance, you’re obviously gambling. To cover your bases you would need the replacement value of your car on hand at any given time.
Your savings you saved up from no payments is not disposable income! That’s just there to replace your
car.
I have a coworker right now who’s car is now 8 years old with a lot of miles. Little things are broken on it that are not worth replacing. Engine is starting making odd noises during crank up, and the overall the vehicle is just wearing out. The new generations of his car are not only new, but greatly improved in all aspects. The car was worth $34K when he bought it, but a new version of the same trim level goes for $45K. He’s not interested in used because he drives so many miles (low mileage used ones are not a bargain anyway), but can’t afford new because instead of socking away the monthly payment each month after it was paid off, his lifestyle just grew into the additional monthly savings. If the idea of having a new payment alone wasn’t bad enough it will now be a higher payment than his last one was. He’s progressing through his career, but his transportation expenses apparently haven’t been indexed for inflation.
Moral of the story is a monthly budget should include transportation expenses, even if you have a paid off car. Those expenses should include the eventual replacement of the car tomorrow. not what you’re paying today.
I find this to be the case as well. Most famalies I know, including mine, the husband drives the crappy beater and the wife drives the nice car. My wife even works from home yet drives the nicer car.
I think it has more to do with men typically understanding the value of a dollar while women do not and think money is a renewable resource. I'm not saying all women are like that but quite a few are. So the husband does everything he can to save money because the wife does everything she can to spend it .
Everybody else must be living in a different universe than I am.
In my younger days, young single guys would spend $3k out of their crappy minimum wage job to customize a busted $2K car to make it worth $1k. That of course was intended to “lure” the hotties and show the other single males what’s up.
Now that I’m older, I see guys making $50k a year driving $65k pick up trucks and buying $2k BBQ grills and $500 Yetis. Don’t get me started on $75k fishing boats. This forum seems to attract guys who think spending $35k on a car to get to work is “living above their means” while here in the real world I see guys spending at least double that on their hobbies alone.
While there are frugal money conscience guys out there, there’s no way in hell I’d make that a blanket statement with a straight face.
Everybody else must be living in a different universe than I am.
In my younger days, young single guys would spend $3k out of their crappy minimum wage job to customize a busted $2K car to make it worth $1k. That of course was intended to “lure” the hotties and show the other single males what’s up.
Now that I’m older, I see guys making $50k a year driving $65k pick up trucks and buying $2k BBQ grills and $500 Yetis. Don’t get me started on $75k fishing boats. This forum seems to attract guys who think spending $35k on a car to get to work is “living above their means” while here in the real world I see guys spending at least double that on their hobbies alone.
While there are frugal money conscience guys out there, there’s no way in hell I’d make that a blanket statement with a straight face.
No kidding. Don't forget the 4-wheelers, motorcycles, extra project car, etc.
I can't really believe what I am reading on this forum because it's so far out there that I can't even believe it.
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