After nearly 300,000 miles, my old car has been really reliable, but the repairs have become more frequent.
Though I initially planned to hold off, I decided it was time to purchase a newer (but still used) vehicle. I met with my accountant—who happens to be very frugal—and after reviewing my finances,sharing with him my thoughts on a new car, he gave his blessing. Lol. I was actually surprised, he hates debt, but told me it was time and to aggressive with paying it off.
I ended up purchasing the car with no money down, using the $4,000 I had originally saved for the down payment to instead cover the tax and tag. I guess this is like a down payment. I’m grateful I had that money set aside, it allowed me to finalize the purchase smoothly.
After covering those initial costs, I still have about three months’ worth of car payments saved, which gives me some financial breathing room. I always try to drive for at least 3 months of savings in my sinking funds for things like , mortgage, HOA, and now car. I do have a separate emergency fund with about 4 months of expenses. I need to work on adding the car now to that.
To ensure I stay on track, I reworked my budget. I had to make some adjustments, particularly in how much I’m contributing to my emergency fund and other sinking funds. However, by reworking the budget, I am able to put an extra $100 toward my car payment each month, helping me pay it off faster.
I’ll continue making my usual $400 monthly payments on both my student loan and my last credit card, keeping me on track to eliminate those debts. Since purchasing my home, I’ve also made it a habit to pay at least $60 extra toward my mortgage each month, and I plan to maintain that consistency.
Although I wanted to wait a little longer before getting a new car, the reality is that my old one has been requiring more and more repairs. I just had it in the shop for another leak, and I know its days are numbered. I’ve decided to keep it for local driving until it completely gives out, while the newer vehicle will be used for long-distance trips and events. Having both cars for now gives me some flexibility and ensures I’m not relying entirely on one vehicle.
This past month, I’ve been a bit inconsistent with tracking my spending. However, I haven’t gone over budget—I still have over $100 in cash from my last paycheck, which reassures me that I’m staying within my means. I’m determined to be more diligent about tracking as the year continues.
On the investment side, I made the decision to sell my Tesla stocks. I’ve simply lost interest in supporting the company, as I’m not a fan of Elon Musk. I’ll be looking at other investment opportunities that align better with my values and long-term financial goals.
Lately, though I’ve made a ton of progress, I’ve been feeling like I’m losing sight of some of my bigger financial and personal objectives, so I’m putting my vision board back near my desk.
Having a clear visual reminder of my goals has always helped keep me motivated and accountable. This year has been a wild ride, but I remain hopeful, determined, and committed to making smart financial choices that set me up for long-term success.
I’ll update the sidebar later.
February 24th, 2025 at 02:16 pm 1740406561
I think once you are dealing with a lot of car repairs it makes sense to eliminate the risk of being stranded somewhere with a reliable car and expenses popping up over and over.
Some things you might want to think about:
What will it cost you to keep the old car insured and registered?
What is the difference in gas mileage?
Does the new car have safety features the old car doesn’t?
Are you satisfied with the interest rate the dealer gave you on the loan or can you do better somewhere else?
Enjoy!
February 24th, 2025 at 07:40 pm 1740426040
I guess regardless of how frugal we are, we all need to replace them eventually.
Congrats on your new car!
February 25th, 2025 at 12:34 am 1740443693
February 25th, 2025 at 10:57 pm 1740524267
Godo plan on putting the vision board back in your sight. As they say, out of sight, out of mind or something like that.
February 26th, 2025 at 01:26 pm 1740576417
February 27th, 2025 at 03:17 pm 1740669442
I'm very happy I moved forward with my plan to buy a new car in January, because prices on things like steel will likely rise (25% steel tariff). It's for a similar reason that I'm seriously thinking of getting a steel roof (to last a lifetime) on portions of my home as prices will only rise in coming years while a steel roof's longevity makes waiting irrelevant.
Replacing my 12-year-old 4 door sedan with an AWD hybrid SUV was a HUGE leap forward with all the new technology and safety features. I hope you get to experience that too.
Your post was a reminder to me to take a closer look at my investments to see if any invest in Tesla. I am not a fan.
February 27th, 2025 at 09:21 pm 1740691303
February 28th, 2025 at 02:43 am 1740710639
Lots of Ideas, thank you so much, I’m definitely going to look into what you’ve shared.