We’ve got a ranch so we own a lot of vehicles, mostly diesel trucks but a couple family cars as well. The only purchases we make anymore are salvage titles from a trusted shop.
Look at the salvage report to see why it was scrapped and do your research on the sellers. There can be phenomenal deals.
Unsure frugal gal wrote:
We have an old sedan that we bought cash 6 years ago and now my husband wants to get a SUV.
I think that's foolish to spend money on a car while we could invest instead. Our car works fine. It has cosmetic issues and it's a tad small now that we have a kid, but we don't really need. We only use it on the weekend and on vacation.
Our finances: no credit card, no car loan, but 1 school loan remaining (around 10K left). We are renters. Combined, we make around 150K a year. We have a 401K, an IRA, a 3-month emergency fund, and around 50K in stocks.
I told my husband that it's a bad idea to get a brand new car since it depreciates instantly. He reluctantly agreed and he's now looking at pre-owned SUVs for around 20-25K, which I find super expensive. He's also interested in leasing. Again, I think that's a bad idea financially.
What do you think? Would you buy a new car? And if yes, how much would you spend on it?
In your situation, YES I would buy a car. AND, I would actually probably get a NEW car. 10 years ago I wouldn't have said that, but today used cars hold so much of their value that spending a tiny bit more for a new car is a better idea (it's NEW, it likely has better features, and again, it's NEW), if you have the income (and you do) and if you aren't in a lot of debt (and you aren't).
If you are concerned about price, go for a less expensive SUV (some are pretty small and might be considered a cross over, so you need to see if they are big enough:
Kia Seltos - $23,100
Mazda CX-30 - $23,000
Mazda CX-3 - $22,335
Honda HR-V - $22,140
Hyundai Kona - $21,575
Hyundai Venue - $19,925 (this might be the one)
Kia Soul - $18,610
If you can still find NEW 2020s on the lot, that's even better.
Free_the_thigh wrote:
New car aside, your husband is stupid for wanting an suv.
SUVs are stupid cars that barely anyone needs.
So many people really seem to dislike SUVs on this thread. Does everyone live in urban or warm weather environments on LR?
For those of us who live in mountainous and more rural areas where the roads are pitchy and can be snow/ice covered or muddy and potholed (especially on forest service roads or in late spring) SUVs with 4WD are a game changer. Especially for year round mountain access.
You don't need a new or expensive SUV but for those conditions a reliable one with 4WD that can also haul your bike, skis or camping stuff makes life way easier.
JosePublico wrote:
Is PNSO involved with this somehow?
This is something to consider. I'm not saying all relationship problems can be solved with more blowjobs, OP, but SOME of them can. Clearly your husband is feeling anxious or inadequate in some way and is attempting to cope by wasting his money on a nice car.
Do expensive cars still have to drive the same speed as everyone else? They do. Are they much safer? No. Will they still likely require plenty of repair and maintenance? Yes. It is INSANE that so many people spend as much money as they do on cars. Completely irrational. Intuitively, dropping 40K on car seems like something that only a millionaire would do, but people of more average means do it all the time! Some of them just need to get their minds right, sayin'?
will the child be allowed ANY input on this decision?
You're smarter than him financially.
Never, ever. EVER, lease.
Glad you talked him down to a used suv.
This might be a pick your battles thing as the car isn't gonna do you in or anything.
Yes, using your current car until the repair costs and inconveniences become a big issue is the smarter move financially.
There is some good advice on this thread though.
If your handle is frugal...
Moving from ny very smart move financially. As is not having you second kid. Far more frugal than this car decision. Maybe two orders of magnitude more frugal...
Something to ponder.
It's your life. Just do what makes ya happy.
What was it like being Amish?
As far as I can tell, this is an unnecessary purchase: you already have a car that is not very old and that you barely use. Realize that there is little correlation between social status and value of the car you are driving; many people in NYC with 6- and 7-figures salaries do not even own a car (upstate of course, it is different). If you are concerned about long trips, just rent for these occasions: you will be way better off financially and always drive a clean and almost new vehicle.
Having said this, sometimes it is totally fine to splurge on things you don't really need, if you can afford it. In this case I would make sure you and your husband are on the same page and I would pay cash, if you have to take a loan, then it means you cannot afford it.
86% of Americans live in urban areas.
Leasing has worked great for me. We always have 3 cars in the driveway for the family and one of them is always on lease. Our current lease is $199 per month for 3 years with all maintenance included. We manage the mileage on the leased car so that we turn it in at precisely the agreed upon mileage.
Interesting... wrote:
You don't need a new or expensive SUV but for those conditions a reliable one with 4WD that can also haul your bike, skis or camping stuff makes life way easier.
This is very true. The irony is that most SUVs do not have 4WD.
Free_the_thigh wrote:
New car aside, your husband is stupid for wanting an suv.
SUVs are stupid cars that barely anyone needs.
If you have no kids, no dog, no friends, no outside activities of any kind, no need to go grocery shopping, and never drive in poor weather or on dirt roads, you are correct.
ClonedDuck wrote:
I bought a 5 year old Audi because I love how the car drives, I think it looks great and reflects my personality...
Audi: 4 little zeros on the grill and one big zero behind the wheel!
Surprised the 3-month emergency fund hasn't been mentioned more in this thread.
I'd be wary of purchasing a (seemingly) unnecessary car with a young child and only 90 days of emergency funds in the bank.
If you're going to spend several hundred extra dollars per month in additional payments (car note, insurance, gas, etc.), why not add more to that emergency fund first?
I mostly agree. But if the loan is a super low rate. Might as well take the loan and invest the extra money you'll get a higher return on.
Low interest debt is fine since you have more money to invest.
But I do understand the side of the argument that some people won't invest that extra money. If that's you, ok sure buy the car cash.
I also think it's fine to get a nice used car for 5-10k from Craigslist or whatever and pay cash and be done with it.
Unsure frugal gal wrote:
- Student loan: we could pay it in full today, but the plan is to get rid of it by end of 2021 at the latest, so very soon anyway. I want to keep our emergency find and investments as they are right now.
- State: NY.
- Our kid is 4 yo.
Your issue is the kid. Get rid of that
PoisonIvy wrote:
ClonedDuck wrote:
I bought a 5 year old Audi because I love how the car drives, I think it looks great and reflects my personality...
Audi: 4 little zeros on the grill and one big zero behind the wheel!
Damn that was rude. I love audi styling! I don't like how audi group influenced the styling of lamborghini, porsche ect; not that I'm going to buy one.
Not worth fretting about given your financial situation? Had similar issue with my spouse a few years ago, but I wanted the new car. We argued about it a little bit, but I ultimately purchased the new, totally unnecessary sports car and all is well 6 years later. In your situation, it sounds like you will find more practical uses for your car and so what if you spend a few $k over what you think you should? I take it your dual incomes will continue to increase? Certainly wise to be frugal and look out for the family's economic welfare, but it's only $ and you'll be ok.
Unsure frugal gal wrote:
We have an old sedan that we bought cash 6 years ago and now my husband wants to get a SUV.
I think that's foolish to spend money on a car while we could invest instead. Our car works fine. It has cosmetic issues and it's a tad small now that we have a kid, but we don't really need. We only use it on the weekend and on vacation.
Our finances: no credit card, no car loan, but 1 school loan remaining (around 10K left). We are renters. Combined, we make around 150K a year. We have a 401K, an IRA, a 3-month emergency fund, and around 50K in stocks.
I told my husband that it's a bad idea to get a brand new car since it depreciates instantly. He reluctantly agreed and he's now looking at pre-owned SUVs for around 20-25K, which I find super expensive. He's also interested in leasing. Again, I think that's a bad idea financially.
What do you think? Would you buy a new car? And if yes, how much would you spend on it?
I'm with you 100%. Cars are bad investments that are pushed down the throats of the middle class so they can try to front on one another. They lose value the second after you purchase one. I'm a big believer in driving your car into the ground and then just finding a decent used car to drive into the ground. Repeat every 5-10 years or so.
I'd rather invest/save or plan out some nice vacations. Having a car payment is silly, especially for younger folks who have expenses our parents couldn't dream up. Rent and college is not what it was. It's not the avocado toast that's doing us in. It might be the car that we don't need if getting one makes you car poor. I see zero value in saying I drive a BMW but can't doing anything else and can't save.