How do you talk your self out of buying a want?

[james.hendrickson]

My Toyota 4 Runner has about 254,000 miles one it. Lately I've been looking at pickup trucks so I can haul more gear when I go hunting. However, Toyotas are great and I know I can get a few more years out of my current vehicle. Every time I start browsing, I talk myself out it...but a few weeks later I find myself looking around again. Its been happening for months.

When you guys WANT something, but don't NEED it, what do you do to permanently get the idea out of your head?

[kork13]

Are you sure you need to talk yourself out of this? 250k+ is a pretty good run. If you have the money to afford a replacement vehicle, I wouldn't necessarily call it a bad idea.

To the actual question.... Most of the time it's a matter of logical reasoning. I ask myself if it's a want or a need, and try to balance that in my head. Gratefully, I'm fairly analytical, so I can tell fairly accurately what I do & don't need, and stick to that. That process normally helps to keep me from making emotional purchases. However, I'm also of the mind that when something keeps coming up, it may be worth considering more carefully, when I'm not making an emotional decision.

So again... Are you sure it's not time for a replacement vehicle?

[disneysteve]

I agree with kork that there are really 2 issues here. One is your actual question; the other is if that question applies in this particular situation.

If your truck has 254K and a newer one would enable you to carry stuff you can't currently haul, and, of course, you can afford a replacement, I'd say to go for it.

As for the broader question, I think it really depends on the situation and the item in question. Everyone's budget should include a "wants" category, fun money, miscellaneous, whatever you want to call it. The baseline 50/30/20 budget that I often talk about does just that: 50% for needs, 30% for wants, 20% for savings. The expectation is that a good chunk of your income will go for wants. There's nothing wrong with that as long as it's done within the bounds of the big picture.

Sometimes I talk myself out of something because when I really think about it, I realize that it serves very little purpose or won't get used very much at all or I don't really have anywhere to put it or whatever other reason makes it a really impractical purchase. But plenty of other times, I go ahead and buy the item and I enjoy having it as much as possible. I'd even say that the ones that I agonize over and think about the most are often the ones that bring me the most enjoyment. It's the impulse purchases that I tend to regret later.

[james.hendrickson]

Kork, its a good point. That said...I've heard that, as a rule of thumb, its easier to keep something on the road than it is to purchase a new vehicle. So, for example, I know my truck needs a new coolant pump. Thats probably going to cost about $1,000 to fix. But a new vehicle would cost at least $5,000. So...my thinking was to keep it going for as long as possible.

[Nutria]

Kork, its a good point. That said...I've heard that, as a rule of thumb, its easier to keep something on the road than it is to purchase a new vehicle. So, for example, I know my truck needs a new coolant pump. Thats probably going to cost about $1,000 to fix. But a new vehicle would cost at least $5,000. So...my thinking was to keep it going for as long as possible.

Rule of thumb: replace a used vehicle when the year's repair costs are more than 50% of the payments on a new one. Adjust that percentage to your taste.

[disneysteve]

Rule of thumb: replace a used vehicle when the year's repair costs are more than 50% of the payments on a new one. Adjust that percentage to your taste.

I don't think I've ever heard that before.

Is that based on a 3-year loan? How does the down payment factor in? How do you account for the fact that repair costs aren't consistent? One year, you might have a costly repair and the next you might have nothing beyond oil changes and routine stuff. If you ditch the car after the big repair, you might miss out on another year or two of carefree driving. And what if I plan to pay cash for my next car so there won't be any payments?

I had posted a thread on when to replace a car a while ago but it got lost in the crash but I don't think anyone mentioned this rule of thumb. I'm really curious how it actually works. Let's say I spent $2,000 in the past year on my car. That's 50% of $4,000. I couldn't buy a new car for $12,000 (3 years of payments of $4,000/year) so does that mean I should keep it?

[Jluke]

Kork, its a good point. That said...I've heard that, as a rule of thumb, its easier to keep something on the road than it is to purchase a new vehicle. So, for example, I know my truck needs a new coolant pump. Thats probably going to cost about $1,000 to fix. But a new vehicle would cost at least $5,000. So...my thinking was to keep it going for as long as possible.

5,000 or 50,000 for a new truck?

if 5k I don’t think there is much of a decision to just get what you need.

[Nutria]

I don't think I've ever heard that before.

Is that based on a 3-year loan?

It's based on whatever length you desire.

How does the down payment factor in?

It's all about the payments.

How do you account for the fact that repair costs aren't consistent? One year, you might have a costly repair and the next you might have nothing beyond oil changes and routine stuff. If you ditch the car after the big repair, you might miss out on another year or two of carefree driving.

It's a rule of thumb, not law of nature!!

And what if I plan to pay cash for my next car so there won't be any payments?

Act as if you're financing it.

I had posted a thread on when to replace a car a while ago but it got lost in the crash but I don't think anyone mentioned this rule of thumb. I'm really curious how it actually works. Let's say I spent $2,000 in the past year on my car. That's 50% of $4,000. I couldn't buy a new car for $12,000 (3 years of payments of $4,000/year) so does that mean I should keep it?

A $20K car for 3 years is $730/month, which is $8,760. If your old car is costing on average $4,400/year or more to repair, think about trading it in.

[disneysteve]

It's based on whatever length you desire.

Rules of thumb usually have some sort of parameters. For example, there's one that says your car payment shouldn't exceed 10% of your monthly income for no more than 36 months. If you have a rule of thumb with no time limit on it, that can give you a vast range of results. There's a big difference in payments between a 3-year loan and a 7-year loan.

A $20K car for 3 years is $730/month, which is $8,760. If your old car is costing on average $4,400/year or more to repair, think about trading it in.

$20,000 at 3% for 3 years is actually $582/month or $6,984/year so half would be $3,492. I wonder how many people here would be comfortable spending $3,000/year to maintain their car rather than replacing it. And that's for a 20K car. If you're buying something more costly, that number gets higher. I doubt many people spend that kind of money on maintenance.

Just to be clear, I'm not trying to be critical. I've just never heard that rule of thumb before so I'm just thinking "out loud" about how it would play out.

[Nutria]

$20,000 at 3% for 3 years is actually $582/month.

I accidentally put $25K in the calculator.

[QuarterMillionMan]

For me the thought about dieing and leaving a windfall inheritance behind when I should have spent more on myself. I just bought a $1000 ebike and new iPhone. I'm not looking forward to my next credit card payment next month though (lol).

[kork13]

Kork, its a good point. That said...I've heard that, as a rule of thumb, its easier to keep something on the road than it is to purchase a new vehicle. So, for example, I know my truck needs a new coolant pump. Thats probably going to cost about $1,000 to fix. But a new vehicle would cost at least $5,000. So...my thinking was to keep it going for as long as possible.

I don't mess with rules of thumb very much, because they tend to just muddy the water, when you really should just be making your own well-reasoned decision. But you're right, it is often cheaper to keep an old car running than to buy/maintain a newer one.

My question goes back to utility -- does the 4Runner meet your needs? You get to define what those needs are. Would having more gear while hunting help your trips to be more successful, or more comfortable, or more enjoyable? Does the lower overall expense justify the cost/hassle/frustration of having an older vehicle requiring periodic repairs? How would those compare to what you'd have with a newer vehicle? Really, it's a value judgement. It's the same for any purchase -- you judge how much you value the item/experience/etc. compared to how much you value keeping that money in the bank. I'm not trying to push you either way... I'm just saying that if you really sit down and evaluate what you value in your vehicles, you'll be able to make a cool-headed decision about whether to keep what you have, or to get something different. Whenever you do decide to get something newer, that exact same evaluation will serve you well in choosing what you purchase, because you'll know what you need, what you want, and what you really don't care about...because you've already decided on what you value.

[TexasHusker]

My Toyota 4 Runner has about 254,000 miles one it. Lately I've been looking at pickup trucks so I can haul more gear when I go hunting. However, Toyotas are great and I know I can get a few more years out of my current vehicle. Every time I start browsing, I talk myself out it...but a few weeks later I find myself looking around again. Its been happening for months.

When you guys WANT something, but don't NEED it, what do you do to permanently get the idea out of your head?

you need to talk yourself into needing it. but first you have to want to.

[TexasHusker]

Rule of thumb: replace a used vehicle when the year's repair costs are more than 50% of the payments on a new one. Adjust that percentage to your taste.

I don't have such a thumb.

[scfr]

My Toyota 4 Runner has about 254,000 miles one it. Lately I've been looking at pickup trucks so I can haul more gear when I go hunting. However, Toyotas are great and I know I can get a few more years out of my current vehicle. Every time I start browsing, I talk myself out it...but a few weeks later I find myself looking around again. Its been happening for months.

When you guys WANT something, but don't NEED it, what do you do to permanently get the idea out of your head?

If it's truly just a "want" (think things like fashion accessories), I'll make a note of it and look at it again in a couple weeks. Most of the time, the urge to buy has died. If I still really want it, it fits my budget and wardrobe, I'm willing to make the tradeoff of buying that particular item vs buying other items or pay for other experiences or working less, I'm willing to "take on" another physical possession (or, more likely, have something I'm ready to trade out), and I accept the environmental impact that the purchase will cause, then I'll give myself the thumb's up. But whether or not I actually buy it depends on whether or not I think I'm getting the best deal I can.

Your vehicle purchase, however, sounds to me more like an "eventual need" rather than just a want. Why not view your browsing time as educating yourself about available vehicles, so that you are prepared to buy when you really need a replacement and/or you find a really terrific buying opportunity. You may be dissuaded to buy when you stop and take a look at your overall financial picture. For example, which is your priority, getting rid of that PMI on your mortgage, or getting a new vehicle? Have you considered all of the costs related to the new vehicle beyond the purchase price --- how will your vehicle insurance rate change, what will you have to pay in taxes, licensing fees, registration fees, how do upkeep costs compare, how do the gas mileage rates compare between the 2 vehicles (will you end up spending more on gas)? How do you feel about the environmental impact of replacing your vehicle? How will you feel about driving the truck when it's not hunting season?

Another thing to think about: Have you thought about alternative ways to get what you want?? How often do you go hunting? How much would it cost you to rent a truck for your hunting trips? If you go hunting with other people, do any of them have a truck and would they be willing to let you ride with them if you pitched in for gas? Or would they share the cost of the rental with you?