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

[cypher1]

For an item under a couple hundred dollars, I usually give myself a couple weeks to think about it. As others said, if the want dies down, then I'm good. For a much later purchase like a newer vehicle, that changes the strategy. You may not "need" a new vehicle now, but if you have additional practical uses for it, just more to consider but should't be the focus. In the end, if you can afford it or it doesn't affect your savings rates or needs, just buy it.

[myrdale]

I am in a similar situation. I have 296,000 miles on my 2002 Frontier. I have my heart set on a new Tacoma, 4 door, 4 wheel drive, automatic, long bed. I opened a savings account earlier this year, and each month I put a little more back. Currently I am up to $12k. I am budgeting $32k.

So my first suggestion is if possible, save up and pay with cash. This gives you a few of major advantages. First you're not going into debt for the purchase. Second, even though it's going to take a while, maybe a long while to save up, you have time to think it over. Third when the big day comes, you have to ask yourself, "Do I really want to let this $32k go?" or can I keep drying the Frontier a little while longer.

For other "stuff", lets say sub $1k in cost, I stop and look at all of the other things I bought and neglected. Do I want to spend $500 on this thing today, when I know in a year it will be in the closet collecting dust?

[james.hendrickson]

I am in a similar situation. I have 296,000 miles on my 2002 Frontier. I have my heart set on a new Tacoma, 4 door, 4 wheel drive, automatic, long bed. I opened a savings account earlier this year, and each month I put a little more back. Currently I am up to $12k. I am budgeting $32k.

So my first suggestion is if possible, save up and pay with cash. This gives you a few of major advantages. First you're not going into debt for the purchase. Second, even though it's going to take a while, maybe a long while to save up, you have time to think it over. Third when the big day comes, you have to ask yourself, "Do I really want to let this $32k go?" or can I keep drying the Frontier a little while longer.

For other "stuff", lets say sub $1k in cost, I stop and look at all of the other things I bought and neglected. Do I want to spend $500 on this thing today, when I know in a year it will be in the closet collecting dust?

Myrdale - thank you. Its old fashioned advice, but I guess it never hurts to go old school. If you want something, save up for it.

[Singuy]

Myrdale - thank you. Its old fashioned advice, but I guess it never hurts to go old school. If you want something, save up for it.

Except now cash is no longer king. Most dealers will give you the best deal if you do financing. Everyone is praying on the "ah crap I was going to pay it off but can't due to this emergency thing". CC company pioneered the "spend 5k in the first 3 months and get 300 dollars cash back"..and then bank on you screwing up repayment and you're hooked for life. Same with a car, they entice you into a finance banking on you sticking with the finance forever. We just bought a car and ended up financed it to save 800 bucks even though we had cash in hand.

[disneysteve]

Except now cash is no longer king. Most dealers will give you the best deal if you do financing.
We just bought a car and ended up financed it to save 800 bucks even though we had cash in hand.

This can be true. The great thing is you can finance and then turn around a month later and pay off the loan. So it's nearly the same as paying cash.

I bought my current car with a 6-year loan. Clearly, I would never take 6 years to pay off a car but that was the best deal. I paid it off in a year.

[Singuy]

This can be true. The great thing is you can finance and then turn around a month later and pay off the loan. So it's nearly the same as paying cash.

I bought my current car with a 6-year loan. Clearly, I would never take 6 years to pay off a car but that was the best deal. I paid it off in a year.

Nope, you can't pay it off within a month. They force at least 3 months worth of finance on you, and then a small penalty before month 6. Telling you, they are in it to win it.

[disneysteve]

Nope, you can't pay it off within a month. They force at least 3 months worth of finance on you, and then a small penalty before month 6. Telling you, they are in it to win it.

Well even if you have to make 6 payments, you saved $800. You don’t pay anywhere near that much interest in a few months.

[scfr]

Nope, you can't pay it off within a month. They force at least 3 months worth of finance on you, and then a small penalty before month 6. Telling you, they are in it to win it.

Does the financing company dictate how much insurance you carry, and is that costing you more than what you would have paid if you had chosen the insurance terms for yourself? When all is said and done, after paying financing and (maybe) penalty costs, and possibly a higher insurance cost, how much are you really saving?

[disneysteve]

Does the financing company dictate how much insurance you carry

I don't believe so. If they do, it's never been more than I would have carried anyway so I wouldn't have noticed.