What were we thinking?

[BigDog]

Ack!

So, we are SO Dave Ramsey Fans, I can't believe what we did.

So, my hubby's car is, well, it is 1 start up away from needing something done (1998 CRV).

Well, after being out of debt for about 6 months. We are now back in.

Friday my 3 yo got his arm slammed in the my minivan (06 Odyssey), by my 6 yo trying to help. Well, that was all I needed to convince me I wanted to trade mine in for a SUV that hold 7 or a minivan with a automatic door. It was an arm this time, what if it was a head next time.

He was ok, then he threw up when we touched it. The swelling went down by Saturday he was punching his brother with it. So, here is how Mother's day went.

7:00 - 3 yo woke up with a 101.7 fever. Nothing else was wrong, but, complaining of arm pain.
8:00 - ER doing x-rays.
9:00 - He is home, arm was fine, just bruised (praise GOD)
11:00 - Firehouse Subs for lunch (tradition on Sunday for us)
7:00 - Driving home in a 2008 Toyota Sequoia

At lunch, my hubby convinces me he needs a car. But, I want one too! So, we set a deal. His car is worth like 2K, mine is worth more like 10K.

He decides trade his car in for an SUV that can hold all of us. And in a few months when we save up a little more money he is using my minivan and the cash to pay in full the truck he wants. Sounds like a good deal right?

Well, somehow we are back in debt now with a 2008 Toyota Sequoia. Well, he likes it so much it is with him at work right now. He refuses now to drive the minivan to work. But, that is ok with me, I'm 5' almost 1". And NEED backup camera to help me back up. So, we are going to have to save for that before I will use the suv.

Now, car insurance goes up (only had liability before).
Gas, goes up.

Oh, and only the 6 yo can get in the suv by himself, as it is so high. It also makes me a little queasy being up so high, I got used to the minivan.

Dave Ramsey would have a field day with us. It is going to take us almost 3 years to pay this bad boy off! And that is if we work fast at the debt snowball.

[Sally Skellington]

I'm a Dave fan, too, but I guess it doesn't make us immune to bad financial decisions. And it always seems to do with cars, doesn't it? :shrug7:

I bought a brand-new Subaru Outback in 2002 after my beloved minivan died.
I did pay in cash, but it was settlement money that would have been MUCH better spent on a downpayment for a house. I keep asking myself why I thought I needed a new car when one only a couple of years old would have been so much cheaper. Argh!

As it is I don't even drive much, and after 8 years the car has only 75000 miles on it! The way I am going it should at least last me for the rest of my life, so maybe it's not so bad after all--haha.

[$Saving!]

My '96 Intrepid finally pushed us over the edge last spring, 160K miles on it and rod bearings needed replaced, but we knew the transmission was heading downhill too as it was a rough 'clunk' when cold.

Soooo, hubby buys rod bearings to fix it so he could sell it and we do, get an amazing price for it as well (free ad, gone in 24 hours) and in the meantime we were looking for a good used Camry. Found one, got financing through government for family members of those who served, 3.9% which was very cheap for a used car. Car has more value than what we paid so we're not upside down on the loan.

2005 Camry, one owner, 21K original miles, $11K and immaculate. Family trust was selling it due to owner dying and noone in the family wanted it (duh!).

We had been without a loan on any car for 10 years, but this is miniscule compared to last loan on the new 96 Intrepid so it's not impacting at all and the interest is so low that our investment income more than compensates.

We own a 'fleet' of used cars, all paid for cash with the exception of the Camry. 89 Supra (180,000 miles), (2) 92 Celica's (one with 140,000 the other just broke 200,000 miles), 90 300Z (90,000 miles), 85 Chevy Truck (110,000), 92 Dodge Ram Van (70,000 miles) finished nicely inside.

All registered, all on the road. Insurance is cheap of course due to age and use of vehicles etc.

We vowed after our last new car purchase in 96 we would not be buying new again, there just isn't any point to paying for a new car to devalue so dramatically the first year.

Hubby does all the repair work on all the vehicles (son does too now) and there isn't anything he can't replace/fix.

To get out of ever financing a car again, there is a way if you can swing it.

You buy a car (used/new doesn't matter). You're making payments on it. You actually makes two payments each month, one to the loan and one to an escrow account specifically for future vehicle. By the time you're done paying off the vehicle, you have in essence paid yourself monthly and have that money + interest to use to purchase a replacement vehicle.

You buy the replacement vehicle and continue to make monthly payment to a new escrow account for replacement of that vehicle in the future.

You'll never have a payment again if you can do it that way. I did it for years when I bought my very first car at 18..........then married in late 20's, had children, mortgage and one income and got off the track on that Intrepid.

[BigDog]

To get out of ever financing a car again, there is a way if you can swing it.

You buy a car (used/new doesn't matter). You're making payments on it. You actually makes two payments each month, one to the loan and one to an escrow account specifically for future vehicle. By the time you're done paying off the vehicle, you have in essence paid yourself monthly and have that money + interest to use to purchase a replacement vehicle.

You buy the replacement vehicle and continue to make monthly payment to a new escrow account for replacement of that vehicle in the future.

You'll never have a payment again if you can do it that way.

I see what your saying, I do, but, pre-dr, probably would have done that too.

But, the way we see it now. I could make ~3% (maxish) in a savings account ~ 5% (max) in a CD. Our loan is at 4.75%.

For some reason they "made" us take out a 72 month loan.:shrug7:

Last time we had a 60 month loan and we paid it off in 35.5 months.

Anyways, if I put it in a savings account at 3% I'm "losing" 1.25% that could have been spent down on the car loan. I might "profit" .25% if I use a CD, but, those are hard to get at until they mature.

We are able to make double payments IF hubby works overtime. But, we usually use OT to buy "other" things, (like new ff car seat, swing set for kids), so it is just going to take a little re-work. We have still worked it in our 0 based budget for regular payments


I just WISH we would have went with the upgraded model of my minivan, when we bought it the first time. Ugh! It was like $3000 more and we thought, why? (This was pre-DR too). Who needs an automatic door. Oh, well.

I got so used to being debt free. Now I miss it already. Buyer's remorse I suppose has set in.

[wealthybarney]

My Father used to say: "Cars were an expensive, but necessary financial evil."
I honestly don't know if you did make a "bad financial decision."
Three years & you will be out of debt.
You have a safe vehicle to use as a family that carries your most precious cargo-your children.

You can put tons of energy into stressing about it, & letting your DH know what a "bad" financial decision he made.
Or, since it is already done, you can choose to react with peace, & never let your family hear you complain, or put another ounce of energy into it again.
If it was a bad decision, you can turn it around by setting the atmosphere in your home.
I say, enjoy that car!

[Macaela25]

At least you didn't let them talk you into a new car. Blech!

[BigDog]

My Father used to say: "Cars were an expensive, but necessary financial evil."
I honestly don't know if you did make a "bad financial decision."
Three years & you will be out of debt.
You have a safe vehicle to use as a family that carries your most precious cargo-your children.

You can put tons of energy into stressing about it, & letting your DH know what a "bad" financial decision he made.
Or, since it is already done, you can choose to react with peace, & never let your family hear you complain, or put another ounce of energy into it again.
If it was a bad decision, you can turn it around by setting the atmosphere in your home.
I say, enjoy that car!

Ha! I didn't say HE made the bad decision. As the thread is titled 'What have WE done'.

I'm just frustrated, he is liking it so much, I wonder if he is going to let me have it once we install the backup monitor. He thinks it is so much "cooler" then driving the mini-van to work.

I haven't complained to them, or my hubby. We both looked at each other last night, and said, "Here we go again." That was the extent of it.

I just can't believe "WE" did this. This is so not like us. One time my kids get hurt by something we bought just to 'penny pinch', the next thing you know we throw all our level headness out the window.

Amazing how kids can make you do things, where you said 'I'll Never do that'.

[puakinikini]

With 5 kids 6 and under you need a good reliable car. I always have buyers remorse with big purchases, but just try to let it go....(this is the pot telling the kettle what to do!)

...and I would definitely get that car from him once the back-up camera is installed - your the one who has to transport the precious cargo!