We’ll sell our cars outright and then look for used again.

Living below your means? A good thing!

Having said the above, I also can understand people buying nearly new vehicles that they make payments for and drive for years. Just this past month, DH and I decided to upgrade to a “newer” vehicle as both of ours were sixteen years old and we have a son with special needs and live in the country. So, we made the decision to buy a two year old economy car for my husband to commute with (making low monthly payments) and for me to keep my 93 wagon for a little while longer, saving for a replacement for that when the time comes. (While I would love to own just one vehicle, both DH and I work full time in a rural area and have different hours, with our son being in school part time and daycare the rest.)

Most people here are excited to get rid of their car payments, it means they can go get another new car with its own payment. I don’t get it.

A used car is not much cheaper, though, when you factor in repairs as they get older. If you get a real dog, as I did with a GM Saab, the cost advantage disappears.

Still, if you plan ahead and save your money, eventually you can buy a nice car, new or used, and stay debt free.

In our teens we bought OLD cars (that ran well. My first car lasted 7 years). In our 20s we bought “grandma cars.” in the $5k range for cars practically new. I had only bought private party (wonderful experiences) but my dh would only buy from a dealer for whatever reason. I agreed as our expectations rose, because I felt less comfortable exchanging $10k+ with complete strangers. We have come to love the “1 at this price” deals at the dealerships. Dh’s car was very inexpensive but has been a dream. (less than $8k, practically new). I tried the method for my last car and also got a great deal. My DH wants to buy a new hybrid next (& drive it into retirement. The one new car my family did own lasted 20 years so we are not opposed to new).

That being said, we only buy what we can afford to pay cash for. It is a very different way of thinking than the norm. We settle on the colors and features available. Obviously it is worth the money saved. We’ve never had a car payment, but as our income and savings grow we have been able to buy up each round. That being said, but for dh’s hybrid dream, I think we’d be content to drive Granny cars forever.

WE aren’t handy but we don’t spend a lot of money on car repairs. Replacing car parts with age is inexpensive. I’ve driven cars as old as 20 years and never had more than a few hundred dollar repair bill. Maintenance is key (simply regular oil changes, checking fluids, taking car in for any signs of problem, that’s all there is to it). The cost of maintaining an older car should be pennies compared to buying a replacement.