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I currently drive a almost 13 year old truck, I bought it for cash brand new and it has served me well, has 140000 miles on it and has zero issues with it. The problem is that it is not fun to drive and does not have the creature comforts of the newer vehicles nor the safety. It is very down on power (0-60 in like 10+ seconds) because its a base model. I was thinking about getting a new Mazda3 hatchback sGT (184hp) for around a tad bit more than 26 out the door, fully loaded with everything (they are running good discounts on the 2016s right now).
The thing is that I don't drive very much, my commute is all of 5 miles each way and on the weekends I perhaps drive a bit here and there. I take a few long distance trips in a year as well. My justification for buying a new vehicle would be that my commute to work would be a bit more fun.
I also would be keeping this car for at least 10 years, I don't change vehicles often. I would also keep my existing truck because I need that to haul my motorcycle.
I would be buying the new car all cash and financially I can very comfortably afford it. Sometimes I feel it would be nice to own a nice car but at other times I ask whether I will use it enough to justify spending 26k on, financially I know I could just rent a nice car for long distance trips and it will come out cheaper but should I be so cheap as to think about it that way? I mean most people just buy themselves something nice if they can afford it right?
So the question is, should I or should I NOT? I know some of these decisions tend not to be purely financial I seem to be conflicted about this - on one hand I think yikes 26k, that is a boatload of money to put into something I may not use very much, on the other hand I think I have a good job, am successful I think it's fine if I drive something at least decent...and it's still an entry level economy luxury car, it's not like i'm spending 50k on a BMW or something.
I know I could just rent a nice car for long distance trips and it will come out cheaper but should I be so cheap as to think about it that way?
My advice: yes, you should think of it that way. You have to keep the truck to haul your motorcycle, and it's perfectly serviceable as your daily commuter. 26k is too damned much money to spend on a toy. Put that money away for retirement or a house down payment, and rent a zippy fun driver for your infrequent long road trips. Get a nicer vehicle when your truck actually NEEDS to be replaced, not before.
Never base your financial decisions on what "most people" do! Remember that most people are financial illiterates and live just a paycheck or two away from disaster. Why emulate them?
Aredhel, thanks for your response. I knew at the back of my mind this was financially a bad idea and I was operating more from an emotional standpoint that it would be nice to own a newer car. But yes, when I think about it as 26k + higher operating expenses like insurance on a new vehicle and higher registration costs those things do add up and is it really worth that kind of money to just sit in a nicer seat and have a bit more fun for 10 minutes each day?
I currently drive a almost 13 year old truck, I bought it for cash brand new and it has served me well, has 140000 miles on it and has zero issues with it. The problem is that it is not fun to drive and does not have the creature comforts of the newer vehicles nor the safety. It is very down on power (0-60 in like 10+ seconds) because its a base model. I was thinking about getting a new Mazda3 hatchback sGT (184hp) for around a tad bit more than 26 out the door, fully loaded with everything (they are running good discounts on the 2016s right now).
The thing is that I don't drive very much, my commute is all of 5 miles each way and on the weekends I perhaps drive a bit here and there. I take a few long distance trips in a year as well. My justification for buying a new vehicle would be that my commute to work would be a bit more fun.
I also would be keeping this car for at least 10 years, I don't change vehicles often. I would also keep my existing truck because I need that to haul my motorcycle.
I would be buying the new car all cash and financially I can very comfortably afford it. Sometimes I feel it would be nice to own a nice car but at other times I ask whether I will use it enough to justify spending 26k on, financially I know I could just rent a nice car for long distance trips and it will come out cheaper but should I be so cheap as to think about it that way? I mean most people just buy themselves something nice if they can afford it right?
So the question is, should I or should I NOT? I know some of these decisions tend not to be purely financial I seem to be conflicted about this - on one hand I think yikes 26k, that is a boatload of money to put into something I may not use very much, on the other hand I think I have a good job, am successful I think it's fine if I drive something at least decent...and it's still an entry level economy luxury car, it's not like i'm spending 50k on a BMW or something.
If you are maxing out your retirement/savings and won't have borrow money, why not. I did that last year (even though I took out a small loan since the rates were below 2% and I don't plan on keeping the car longer than three years, by choice).
Fact is, if your finances/retirement are straight, I don't see an issue. Yes, you could put that money in a fund, but heck, you have to live a little.
Wonder if you can put a tune on the truck you have now (to speed it up) and get some new tires and maybe lower it down a notch. Sounds like you are going to be driving it a lot anyway.
Think about a "Pimp my Ride" type deal and see if you can't do something to speed it up and look/feel different. Will be cheaper.
If you want safety and fuel efficiency, get a used car. Honda has a hatchback, and they're very safe and fuel efficient, plus they last forever--over 200K miles. Even the 4 cylinder models have a surprising amount of power, if that's important to you (for "fun"). That makes a lot more sense than either a) spending a lot on a new car for a short commute and grocery shopping, basically, and b) continuing to do your short commute and grocery shopping in a truck.
I assume you live alone. Based on what you wrote, it sounds to me like you have it made. You certainly seem happy with the truck. It's still in good condition and it's always nice to have a way to haul stuff.
The only point I can bring up about waiting is that you may need a replacement vehicle down the road (or sooner if you ever - Heaven forbid - have a wreck). A car will cost even more then. But I don't think it's a concern for you.
Why not buy a slightly used car and save those first few years of peak depreciation. That is of course unless the brand new one has features that didn't exist before this model year. I can't stand the thought of losing so much so fast. According to Edmunds, one minute after you drive a $30,000 new car off the lot it has lost $2559 in value and by the end of the first year you're down $5687. That's over $100 a week in depreciation alone.
I often want new toys I cannot justify. I try to satisfy my splurge buying by items that cost less than $50. I am still driving a 1998 Buick Regal. It fulfills my need for a second car for running errands.
No one can tell you what you should or should not do.
You don't have to purchase a new 'new' car, you could choose to purchase one that is about 3 or 4 years old and it will have all the safety features and have power and would likely cost you $15K - $17K or thereabouts. If I wanted to purchase a car just to have something fun but knew I would not use it that much, I would look for something preowned.
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I seem to be conflicted about this - on one hand I think yikes 26k, that is a boatload of money to put into something I may not use very much, on the other hand I think I have a good job, am successful I think it's fine if I drive something at least decent...and it's still an entry level economy luxury car, it's not like i'm spending 50k on a BMW or something.
