On Black Friday we decided to purchase a car stereo for $99 with free installation for my DH’s Ford Focus. It came out to $170 after taxes and buying cables to attach the stereo to the car. I thought wow pricy!
But here’s what it really bought me. Time. My DH loves his new stereo because it has an ipod attachment. It allows hims to listen to his ipod on his commute and he is very happy with his car. Previously he has been complaining about how old his car was. How he wanted a new car. He said it wasn’t good enough and he felt that he should be driving a better car.
Well after he installed the car stereo he’s now feeling like it’s a brand new car. So he’s pretty happy with it. I managed to “distract” him from wanting a new car. I’m not sure if anyone else does this, remakes or remodels something they already own to like it again. I would liken it to recovering a couch or buying a slipcover. Or buying new bedding for your bed.
Do you spend a small amount of money to stop from spending a larger amount? Is it wise or unwise?
Personally I’m hoping my DH will be happy for one next at least, maybe two years. Then we might be in a position to buy a newer car. Was it a wise or unwise decision?
24 responses so far ↓
1 Tim // Dec 10, 2008 at 5:41 pm
does the music arrive before he does, just so he has something to listen to when he reaches his destination? If not, I think he needs a pair of 15″ Kicker solo-barics.
2 Fabulously Broke // Dec 10, 2008 at 7:16 pm
*LAUGHING*!!!!!!!!!!!!!!!!!!!!!!
That’s really smart. I think you did a very good, frugal way of curbing the desire to buy a new car when really, the iPod just wasn’t clear enough for him.
3 fengshui // Dec 10, 2008 at 8:23 pm
I have to have tunes when driving! I couldn’t imagine driving around without a stereo, and especially if I made as much as your DH, I’d feel pretty bitter about driving around in a ghetto-mobile w/ out a stereo….. good call.
4 fengshui // Dec 10, 2008 at 8:24 pm
I also think that you guys could easily afford a $250 or more car payment for a new car, but that is just my opinion…..
5 LAL // Dec 10, 2008 at 10:04 pm
Thank you tim, but no thanks to the car stereo. He’s too old for that.
Fengshui, I’m not working for a car payment. If I’m going to work it’s going to be so I can retire early, stay home with kids if I chose, pay for college, and vacation. Everything is a true want.
6 fengshui // Dec 10, 2008 at 11:34 pm
It is a matter of priorities, and everyone is different. Being a SAHM is not a priority for me. I don’t have the desire to not work at all, I still want to work at least PT, and my hubby wants me to keep working as well. I also just like having a “newer car”, it makes me FEEL like I have “something” that I have worked really hard for. I als0 don’t really care to completely retire early. I truly LOVE what I do for a living and could see myself staying PT for a very long time.
I would rather have a “newer” car that is under warranty, safe, and a car that I can trust. My car is newer and I love the fact that it has dual front, dual side, and dual curtain air bags. I also love the warranty. I’ve had over $10k in repairs and roadside assistance paid for without any deductible because of the warranty. I plan on keeping my car until the warranty runs out, so I can keep it for probably 3 more years, and that will be a total of 6 years that I own it.
But then again, that is why I’m trying so very hard to maximize my earnings. My hubby and I both have a goal to reach $100k a year by the time we turn 35. I’ll reach that goal within 2 years. If we both make $100k, then we won’t have to decide between a new car and saving for college. We want both…..
7 Tim // Dec 11, 2008 at 6:02 am
@LAL, he obviously isn’t mid-life, and you can never be too old for duo 15″ subs. You should go to West Coast Custom shop and get a capuccino maker installed in the car.
8 LivingAlmostLarge // Dec 11, 2008 at 3:58 pm
Tim, heck no. And Fengshui, if you are constantly borrowing to get something you can’t really afford it.
There is nothing wrong with having nice things. There is also nothing wrong with affording it in due time. You can afford it when it doesn’t affect your goals.
Example goal is save 10% for retirement, 10% for long term expenses like home repairs then spend 80% on taxes, etc. If a car is important set aside a bigger payment.
A car loan is fine if it’s say 1-2% and you could have paid cash. But a car loan because you couldn’t afford to pay cash is not a great idea.
You have to change the mindset that it’s always okay to give yourself everything now. Delayed gratification for what you really deserve is better.
Do we enjoy eating out? Yes. But not at the expense of paying $400 instead to a car a month. We could, but we prioritize it as less important.
Is it important to have healthy dogs? Yes. Otherwise we could have $100 towards a car.
Travelling. We’re going to spend $3k on our vacation, that is a car payment all year. But travelling is important to us over a nicer car.
9 Tim // Dec 11, 2008 at 5:20 pm
well, at least get him some neon running lights when that flash with the beat of the music.
10 fengshui // Dec 12, 2008 at 2:12 am
“And Fengshui, if you are constantly borrowing to get something you can’t really afford it”
I don’t think that paying cash for a $20k car is very “realistic”. Many/ most people finance a car because it is considered a “major” purchase. Buying a new car and getting good financing, say 0-3% interest, and a 36 month term, and then keeping the car for 8 years, is something that I consider to be realistic. I can’t pay cash for my house, but I can “afford” it, so I see having a new car as the same type of thing. For most everything else, furniture, clothes, etc, I do pay cash.
11 karry // Dec 12, 2008 at 9:29 am
Before the next round comes up (and believe me, it will) have the headlights polished. Sounds crazy, I know, but the cloudy yellow plastic headlight covers age a car dramatically. Have your local speedfreak polish them shiny again and you won’t believe your eyes.
12 LivingAlmostLarge // Dec 12, 2008 at 10:03 pm
Fengshui, it’s reasonable if you keep your car 8 years. Say you have 5 years to save $20k that’s $4k/year and it’s a little over $300/month!
Totally doable. That’s if you get a $20k car.
Read about Dog’s thoughts on not buying a new car recently.http://www.dogatemyfinances.com/2008/12/something-changed.html
A car is still just a car. Sure I’m not against financing, my DH did it. But to continually finance cars? And why not save up for it?
And trust me if a home were $200k then I’d be able to get close to paying cash for it, so it can be done.
13 fengshui // Dec 12, 2008 at 11:01 pm
Our home was only $175k, so when I bought my car new 3 years ago, I really didn’t see it as a huge deal. I financed it, and it was around $21k. I have gone back and forth about whether it was a good decision, etc, because I loathe making the payment every month, but I have been so glad lately when I had my transmission rebuilt, then replaced with a new one, a few sensors, and 2 rims, all covered under warranty. Plus, I got free loaner cars while they were doing work on my car as part of the warranty. It was really nice. My hubby has a clunker and the transmission is going out on it, the wheel bearings and CV joints have to be replaced, and all of that right there is over $2k, so that is almost a years worth of payments right there….. Once I have my car paid off, I will have to decide how long I will keep it, and what I will do again for my next car. I’m willing to put a large down payment on it, like $5-$8k, but I can’t see paying cash for the whole thing, I would rather keep that money in a HY savings, especially if I could qualify for 0% financing for the remainder of the balance…… I definately will make smarter decisions for future cars, like a 3 year term instead of a 5 year term like I have for my current car……
14 LAL // Dec 13, 2008 at 9:17 am
Trust me, we couldn’t have bought our current cars without loans. Our goal is to have a small or no loan when we buy again. I have no idea when that will be and right now we likely can’t afford cash.
One option is to buy a cheaper car, used for a few years. I will investigate what options are out there. Since we’re driving our cars into the ground now, I am not sure if we necessarily get the best money out of used cars. Unless we paid a premium for a 1 or 2 year old used and kept it just as long.
I would prefer a paid for car always.
15 fengshui // Dec 14, 2008 at 12:33 am
“well, at least get him some neon running lights when that flash with the beat of the music”
Tim, you are cracking me up!!!
19 Funny about Money // Dec 17, 2008 at 7:26 am
LOL! I love the whole idea: deflect your yearning for a big expensive purchase onto a smaller fun purchase.
About Fengshui’s observation that “I don’t think that paying cash for a $20k car is very “realistic”: au contraire. When I first began my financial journey, it took me 18 months to pay off a $23,000 Camry that I’d bought on a five-year note. I then started stashing the amount of the payments in Vanguard’s short-term corporate bond fund. Didn’t take long to accrue enough cash to cover the full cost of the next car, a brand-new Sienna–I gave the Camry to my son and paid the full fare for the new vehicle. That minivan is now eight years old and still running trouble-free. I have enough to buy a new car in cash, but am deferring that purchase because I don’t want to cash out a mutual fund in recessionary times. And because the car is in excellent condition: I don’t need a new car.
I was earning less than $40,000 when I bought my first car in cash. I also was earning less than 40 grand when I paid off the mortgage on my house. I had no husband or partner to help with a second full-time salary.
When I sold my first house and purchased the nicer place I’m living in now, I paid for the new house in cash.
So…. My guess is that if you’re part of a couple and both of you are closing in on a hundred thousand, paying cash for a dinky $20,000 car is well within the realm of “realistic.”
Any day I’d rather spend less of my energy chasing dollars, feel less trapped by enslavement to debt, and enjoy more of my time doing anything but working to pay creditors.
21 LAL // Dec 17, 2008 at 9:43 am
I agree deflection, or maybe slight of hand!
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