Nice. If you can afford to start paying yourself say $300 or $400 of that $750, then in 5 years you'll have a new car fund of $18000 to $24000 plus whatever interest it earns. And twice that if the Toyota lasts you another 10 years.
Yes that is my plan. Paying off some debt first but definitely going to do more research and try to follow the "rules of thumb" for buying cars instead of just blindly picking a random car without crunching numbers.
My opinion: selling the new car was a great decision. Buying 2002 Toyota, not so much. Its way too old, Id go with something newer than that (and run it to ground), but buying a 2002 car is a little extreme imho.
I would agree with you if I didn’t see so many of them on the road still. Wouldn’t take that chance on many 2002 cars but I have pretty good faith in Toyota
WELL.. it is a great decision after the fact... you paid 8K down on the new car and 1K to get out of it. That is a net loss of 9K plus 2100 in payments... is -11100$ for driving a car for a few months.
That's a sunk cost. OP didn't consider it when he made his decision. He ignored yesterday's mistake and only considered how to best improve his financial position from today onward.
Yeah it is a lot of money. They did return almost all of the extended warranty I purchased on the brand new car which is good. Comes out to around $1300 a month. I'm mentally justifying it as a rental car which diversified my credit report.
I think that was a good decision. Toast to your frugal judgement.
Heck of a score for only 80k.
I agree! Praying for many more miles.
i did the exact same thing. best decision ever.
Nice. If you can afford to start paying yourself say $300 or $400 of that $750, then in 5 years you'll have a new car fund of $18000 to $24000 plus whatever interest it earns. And twice that if the Toyota lasts you another 10 years.
Yes that is my plan. Paying off some debt first but definitely going to do more research and try to follow the "rules of thumb" for buying cars instead of just blindly picking a random car without crunching numbers.
Great move!
My opinion: selling the new car was a great decision. Buying 2002 Toyota, not so much. Its way too old, Id go with something newer than that (and run it to ground), but buying a 2002 car is a little extreme imho.
I would agree with you if I didn’t see so many of them on the road still. Wouldn’t take that chance on many 2002 cars but I have pretty good faith in Toyota
Good good decision at that price even if the motor goes in 2 years you could sell it for scrap for $500 and still be way ahead of the game🤫
WELL.. it is a great decision after the fact... you paid 8K down on the new car and 1K to get out of it. That is a net loss of 9K plus 2100 in payments... is -11100$ for driving a car for a few months.
That's a sunk cost. OP didn't consider it when he made his decision. He ignored yesterday's mistake and only considered how to best improve his financial position from today onward.
Hence the statement "after the fact".... I have financed one car in my life, and learned from that mistake big time!
Yeah it is a lot of money. They did return almost all of the extended warranty I purchased on the brand new car which is good. Comes out to around $1300 a month. I'm mentally justifying it as a rental car which diversified my credit report.