the times they are a changing =)

[readytorock]

I bought a new car today. With cash.

It is only my second car. My first car, I bought 8 years ago, brand new, and took out a loan at 9% interest! I was only 19 years old, and like many other people, assumed you couldn't have a car without a car payment.

I found Dave Ramsey, then you guys, then Get Rich Slowly, etc. about three years ago. I quickly paid off the last two years remaining on the 7 year note. Built my EF. Then started saving for a car replacement fund.

During all that I started my own business, which has become wildly successful, and bought my first house at the end of last year with 25% down. My 8 year old car started falling apart this winter (cheap Kia), so I decided it was time to use that car replacement fund.

I can't tell you how great it felt to walk into the dealership and write them a check. No hassle. No financing. No APRs.

Just want to thank everyone in this community. I'm 27 now, and even though I started a little later than I would have liked, it's going to be a long life of doing things right from here on out. =)

[kork13]

At 27, you're still ahead of the game. Many people don't even consider their financial health until they're loaded with tens of thousands in debt in their mid-30's (or later). You can only do well financially when you start thinking smart about your money while you're still relatively young.

[bjl584]

Congrats. Sounds like you are on the right track.

[maat55]

You will never regret a debtfree lifestyle, congradulations.

[DanielB]

Nice! Congratulations. Your story is certainly inspiring to me!

[khosta]

Wow! I'm 26 and still have Student Loans and CC debt... Wish I were in your shoes! You're definately ahead of the game!

[wincrasher]

Empowering, ain't it?

[MonkeyMama]

That's awesome!

[Joan.of.the.Arch]

Cool!

But, uh, a check? The car dealer accepted a personal check? Did they make you wait until the check cleared the bank before you could drive the car away? (Not a cashier's check?)

[MonkeyMama]

Cool!

But, uh, a check? The car dealer accepted a personal check? Did they make you wait until the check cleared the bank before you could drive the car away? (Not a cashier's check?)

We have always written personal checks to the dealership. No biggie. Standard practice for cash payers?

Good credit may be required, for them to accept.

[Joan.of.the.Arch]

Well, I just spoke to my spouse who says that we used personal checks on our last two purchases. Huh, it never registered as a surprise with me before that they were willing to take a personal check for such large amounts. I do remember wishing we could put the purchases on credit card in order to get the rewards....Anyway, good goin', readytorock.

[readytorock]

But, uh, a check? The car dealer accepted a personal check?

They didn't mind taking the personal check. I called ahead of time to make sure they would accept it though. I also did all of the negotiating on price via email so there was no pressure or emotions. We agreed on the "drive away" price before I even stepped foot into the dealership. Got a great deal.

[snafu]

congratulations on your vehicle replacement fund! what did you buy? I wish you'd mentioned this before completing your negotiations as I also bought a new[er] vehicle a couple of months ago. Once the price was set, I offered my AMEX as I would gain a lot of travel points. The sales mgr. knocked another 2% off for a bank draft. I had never been to this dealer before so I fully understood their reluctance to accept a cheque...also I needed to transfer funds to chequing.

It helps to accumulate replacement funds in an ETF or MF with as high a volatility/risk level as you can tolerate [and sleep at night]. The reasons for market volatility changes constantly but looking after money compares with owning/driving a car. I haven't a clue how my car works or whether it was put together correctly. There is enormous risk owning/driving but it's up to me to look after my 'investment,' stay focused behind the wheel, not drinking coffee or daydreaming. I try to plan the time and route. Sometimes I'm caught in a traffic snarl with no off ramp access so I wait. Other times I hear the helicopter and am able to chose a different route to escape while others continue to drive unaware of an upcoming problem. If I drive into a blizzard it's not smart to abandon the car. It's better to wait to be rescued.

I've never understood people who do not see the risk in driving.

[Shewillbemine]

That is awesome! If you don't mind, how much was this car since I want to revel in the purchase and live vicariously through you? (no sarcasm)

As another poster said, another way to do it (if you have the credit card limit for it) is to use a card to gain rewards. However, even another way to do it would be to walk in with a pile of cash in a suitcase and tell them to count it in front of you (lol I did this for my last car purchase). The dealership actually said no biggie since they know some of their customers do this.

And yet one last way to do it is to invest some of that cash instead and take out a low or 0% car loan since some people might want to make their money work for them.

Personal preference and there is absolutely great joy in making cash purchases.

[readytorock]

That is awesome! If you don't mind, how much was this car since I want to revel in the purchase and live vicariously through you? (no sarcasm)

It is a 2010 Toyota Matrix, and I drove away paying $16,174 (including taxes, registration and other misc fees).

And yet one last way to do it is to invest some of that cash instead and take out a low or 0% car loan since some people might want to make their money work for them.

Due to mistakes my younger self made, I'm still working to repair my damaged credit score. They wouldn't have given me any financing deals, in fact, they would have charged me a premium due to me being a "risk". Writing them a check out right saved me a bundle.