Car Payments

[mrpaseo]

I joined the service in 1992 with a 2.5 year commitment. My frst tour I had some issues (Branching from a rebelious childhood), when I decided to re-enlist I purchased my first brand new vehicle. A 1994 Toyota Paseo (I still drive this vehicle today). I paid $14,500 ($2,500 down, $12,000 loan). I am unsure exacly how long the loan was but shortly afterwards I went on my second deployment, this deployment brought me to Bosnia for 9 months. Before I returned I had the vehicle paid in full. The payments were 241 per month. I went over 10 years without a vehicle payment.

In 2007 I purchased a RAV-4 Limited SUV for a little over $34,000 (It has all the extras). After 16 years of service I wanted to have a nice vehicle paid in full before retirement that would bring me well into retirement. I purchased this vehicle just before my six deployment. This deployment brought me to Iraq for 15 months. Before I returned I paid the vehicle in full (18 months). I hope to go another 10 years without a payment. The payments were $465 per month, but I never paid less than $700 with a final payment of $25,000 dollars in Dec 08.

I decided to purchase new vehicles for a few reasons but one key point I want to make is I do proper maintenance on both vehicles and I intend to drive these vehicles until they need to be retired to the junk yard in the sky.

Since I paid $14,500 for the Paseo and I have been driving it for 14.5 years I basically rented the vehicle for about 83 dollars per month. Each month that number is smaller and smaller.

BTW I know the investment potential loss of the last 14.5 years.

[mrpaseo]

BTW Dave Ramsey has a pretty interesting plan for purchasing vehicles that allows you a new vehicle every 7 years (I think that is what I read). The video is free on line, check it out.

Drive Free, Retire Rich

[Ima saver]

Unfortunately for me, I love vehicles. I always have way more that I need and never seem to be able to part with one to get the next. There are 2 drivers in my household and between us we have 3 motorcycles and 2 cars (a sedan for sensibility and a Wrangler for fun). I just got rid of an SUV in January and have been craving a pickup because I miss having the ability to pick up some mulch or plants and get rid of stuff. I have already had to borrow the neighbors minivan to trade a friend an exercise bike for a treadmill and I had to order mulch delivered. I need a new wheelbarrow but have no way to fit the one I want in any of my vehicles. Frustrating. Probably should have kept the SUV, but it wasn't the greatest mechanically...

All of my vehicles are paid in full though. If I finance at all, it is for a max of 36 months and I will never take on a payment of more than $300 per month. That pretty much limits me to a max of about $10,000 financed, as credit union interest rates are around 4%.

I have to agree with you, my dh loves vehicles and I kind of like them too. Between the two of us, we have 6 vehicles; 3 corvettes, a 1933 ford victoria and 2 work vans. Oh well, you only live once!

[Pitman]

I love vehicles as well. It make sense if you don't care about your car, to drive around in a "jalopy" as one member said. But if someone can afford, and loves vehicles, I see nothing wrong with that person spending his/her hard earned cash on the car they desire.

btw, I frequent a slew of Car forums, mostly Infiniti, BMW, Acura, and Lexus, there was a post on the BMW about car payments, and some were paying upwards to $750/month for some their cars. A little crazy for my taste, but if they can afford, I say why not.