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Of course all cars cost something. However, paying a car off and driving it additional 5 years payment-free will typically save a lot of money compared to a constant car payment. Over 20 years that’s 20 years worth of payments (and full coverage insurance + higher property tax, etc) compared to 10 years of payments. At $300/month that’s $36,000 plus interest/opportunity cost, etc. We are talking $50,000+.
But eventually you will need another car. That car won't last forever and was never designed to. Sure you can string along and fix things as they break which will cost money. They'll break when you don't want them to, like when you're crossing a long bridge, and in the end when it's time to get rid of it, it won't be worth anything and a newer car will be sticker shock compared to the price you paid 20 years ago. Then of course who wants to spend 1/4th their life in the same busted old car?
Yes you can save some money, just like homeless people save on mortgage cost, but in the end money isn't supposed to just keep you alive but allow you to live a little as well. Unless of course you're a communist.
But eventually you will need another car. That car won't last forever and was never designed to. Sure you can string along and fix things as they break which will cost money. They'll break when you don't want them to, like when you're crossing a long bridge, and in the end when it's time to get rid of it, it won't be worth anything and a newer car will be sticker shock compared to the price you paid 20 years ago. Then of course who wants to spend 1/4th their life in the same busted old car?
Yes you can save some money, just like homeless people save on mortgage cost, but in the end money isn't supposed to just keep you alive but allow you to live a little as well. Unless of course you're a communist.
So driving a 6-10 yr old car is now akin to the homeless saving on mortgage cost? I’ve heard it all!
At the average of 15k miles per year, a 10 year old vehicle will have 150k miles - relatively low mileage for modern vehicles. One could probably even go to year 11, 12 or 13 with little chance of an actual break down. Perhaps very minor repairs such as brake pads.
I’m not arguing that everyone should keep a vehicle that long, but one WOULD save a lot of money by doing so. If you have plenty of money perhaps $50k is just a drop in the bucket. Give me the $$$ compounding -anyday- over the “joys” of driving a 5 year newer vehicle. But I’m someone that retired before 30 years old so paying attention to those things helped make it possible.
I hadn’t noticed that myself, but then, I am not a car person. I don’t like low-to-the-ground cramped cars. I have always kept my cars a long time. One of the longer was thirteen years. My current car (a minivan) is a 2009, but I retired in 2014. That makes me one of those little old ladies. My car has 65,000 miles on it. My ex always liked a new car. He showed up one afternoon with a new Cadillac not too long before we divorced. He felt car payments were inevitable and everlasting.
So driving a 6-10 yr old car is now akin to the homeless saving on mortgage cost? I’ve heard it all!
At the average of 15k miles per year, a 10 year old vehicle will have 150k miles - relatively low mileage for modern vehicles. One could probably even go to year 11, 12 or 13 with little chance of an actual break down. Perhaps very minor repairs such as brake pads. I’m not arguing that everyone should keep a vehicle that long, but one WOULD save a lot of money by doing so. If you have plenty of money perhaps $50k is just a drop in the bucket. Give me the $$$ compounding -anyday- over the “joys” of driving a 5 year newer vehicle. But I’m someone that retired before 30 years old so paying attention to those things helped make it possible.
You're the one that said 20 years, not 6-10 which is a bit more doable. In 20 years, you're talking about 300K miles.
But otherwise the keyword is "probably" will make it. It won't be under warranty, and you will have to have that cash easily obtainable somewhere for major breakdowns and you can't always guarantee that it will conveniently breakdown at your garage and not in some god for saken desert somewhere . You will have to pay for a few sets of tires and brakes, spark plugs, etc. and it will "probably" make it, but by that point, you're just the one testing out the lifespan of that drivetrain for the manufacturer. They'll just do their best to ensure it makes it to the end of the warranty period what happens after that is anybody's guess.
What you keep on hand for repairs, you'll also need to keep extra on hand to replace the car. You're going to eventually need to buy a new car and if that car is $30K and you were used to not paying anything but maintenance and your trade in is now worthless, you're going to have a bit of sticker shock when it's time to cough up a new car payment. Or you can save that $30K from not paying for your last car and pay cash for the new car, but then you'll need to rebuild that $30K savings again in which case you're basically just self financing. In other words, unless you plan on dumping the private car ownership thing all together, you're always going to be paying for a car, even if yours is already paid off.
I hadn’t noticed that myself. I have always kept my cars a long time. One of the longer was thirteen years. My current car is a 2009, but I retired in 2014. That makes me one of those little old ladies. My ex always liked a new car. He felt car payments were inevitable and everlasting.
I did like the Red Greenshow, btw.
I feel like most people I’ve met have that “payments are inevitable” mindset. Become an adult, work and make payments on everything (home, car, credit cards, phone, furniture, etc) until maybe 70 years old (hopefully you get some stuff paid off by then).
I feel like most people I’ve met have that “payments are inevitable” mindset. Become an adult, work and make payments on everything (home, car, credit cards, phone, furniture, etc) until maybe 70 years old (hopefully you get some stuff paid off by then).
The house will be paid off (until you sell it to buy that $100K motorhome), but the car payments are inevitable until you end up in a nursing home.
Unless of course you can either find a car that last forever, or appreciates in value like the house did.
Cars are like shoes. You'll keep replacing them forever and hopefully you never come across your "last pair of shoes".
You're the one that said 20 years, not 6-10 which is a bit more doable. In 20 years, you're talking about 300K miles.
But otherwise the keyword is "probably" will make it. It won't be under warranty, and you will have to have that cash easily obtainable somewhere for major breakdowns and you can't always guarantee that it will conveniently breakdown at your garage and not in some god for saken desert somewhere . You will have to pay for a few sets of tires and brakes, spark plugs, etc. and it will "probably" make it, but by that point, you're just the one testing out the lifespan of that drivetrain for the manufacturer. They'll just do their best to ensure it makes it to the end of the warranty period what happens after that is anybody's guess.
I mean I get it. Some people are not car people. They'll wear a $10K watch and drive a $1K 20 year old busted car. Some people want to retire at 20 years old and live under an overpass and never work again and wear thrift store clothes. Some people want a $5K kayak instead. It's all about priorities, but being a car forum, I'd assume most people on these boards might see their cars as something more than a joyless appliance.
You misunderstood.
If one constantly makes car payments for 20 years they are making a payment for (drumroll)...20 years.
If someone pays their vehicles off in 5 years, but drives them for 10, they are making payments for 10 years.
And yes, I used the word “probably” - we all take risk everyday. I’ll probably finish this reply before I die. I’ll probably wake up in the morning. I’ll probably end up living a less stressful life if I don’t have a car payment or house payment.
Trusting a modern vehicle with a history of reliability to make it 150k miles is a “probably” I have no problem accepting. I’ll take that “probably” over the definite odds of that car note coming in the mail every month.
I love your little scenarios. They are fabulous (seriously I laughed). Give thought to retiring early = you want to live under a bridge and wear thrift store clothing (seriously what’s wrong with thrift store clothing though?). Get this, I retired before 30, don’t live under a bridge (own home), don’t shop a thrift stores (not opposed), and could easily pay cash for that $5k kayak if I wanted. Money management is something kids should be learning in schools...but I guess society works better if we are all debt magnets. I like to read about cars, but I have priorities...one was not working 40-60+ hours per week so I didn’t need some car to make me feel alive a few hours per week.
The house will be paid off (until you sell it to buy that $100K motorhome), but the car payments are inevitable until you end up in a nursing home.
Unless of course you can either find a car that last forever, or appreciates in value like the house did.
Cars are like shoes. You'll keep replacing them forever and hopefully you never come across your "last pair of shoes".
Not true Danielson - some of us can pay cash for a vehicle however we may choose to finance with the right interest rate.
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