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Do I go get a new car or stick with my current ride which is paid off?

Posted on 3/9/15 at 9:49 pm
Posted by xxKylexx
Louisiana
Member since Nov 2011
4039 posts
Posted on 3/9/15 at 9:49 pm
Currently driving a 2004 Honda CRV and it's fully paid off. However, after crunching the numbers, I could probably take on a new car. It's just nice not having a car note every month while I wrap up school. My question to you guys is what would you do?
Posted by Carson123987
Middle Court at the Rec
Member since Jul 2011
66377 posts
Posted on 3/9/15 at 9:50 pm to
how old are u
Posted by xxKylexx
Louisiana
Member since Nov 2011
4039 posts
Posted on 3/9/15 at 9:51 pm to
24
Posted by boom roasted
Member since Sep 2010
28039 posts
Posted on 3/9/15 at 9:51 pm to
Stay put.
Posted by BottomlandBrew
Member since Aug 2010
27060 posts
Posted on 3/9/15 at 9:51 pm to
I'd drive into the ground, but that's me. Ymmv, quite literally.
Posted by Spankum
Miss-sippi
Member since Jan 2007
55973 posts
Posted on 3/9/15 at 9:52 pm to
as far as I am concerned, a vehicle is the worst possible place to put money...it depreciates basically to $0 in a decade...

I typically keep my vehicles until they are 15 - 17 years old, as long as they are dependable...

I think you can probably see where I stand on this...
Posted by Ole Geauxt
KnowLa.
Member since Dec 2007
50880 posts
Posted on 3/9/15 at 9:53 pm to
Tis cheaper to drive, whats already paid for.
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
32369 posts
Posted on 3/9/15 at 9:54 pm to
How many years left of school?
Posted by lsunurse
Member since Dec 2005
128950 posts
Posted on 3/9/15 at 9:54 pm to
Keep older car. Wait until you are out of school and have a job and then you can look at your budget and see what you can realistically afford. Start saving now for a really good down payment.
Posted by RedlandsTiger
Greenwell Springs, LA
Member since Jan 2008
2937 posts
Posted on 3/9/15 at 9:54 pm to
quote:

.it depreciates basically to $0 in a decade...


Then just keep driving it till it dies.
Posted by southernelite
Dallas
Member since Sep 2009
53151 posts
Posted on 3/9/15 at 9:56 pm to
quote:

I typically keep my vehicles until they are 15 - 17 years old, as long as they are dependable...



So you plan on having maybe 3 different vehicles in your entire lifetime?
Posted by Spankum
Miss-sippi
Member since Jan 2007
55973 posts
Posted on 3/9/15 at 9:59 pm to
quote:

So you plan on having maybe 3 different vehicles in your entire lifetime?


my first couple were used, so I have already had 3....but that would be ideal....
Posted by TU Rob
Birmingham
Member since Nov 2008
12726 posts
Posted on 3/9/15 at 10:17 pm to
I'll drive my current one until it dies. Which will be a good long while since it is a straight 6 Wrangler. Then I'll throw a crate motor in it and keep driving it.
Posted by WDE24
Member since Oct 2010
54132 posts
Posted on 3/9/15 at 10:30 pm to
quote:

Start saving now for a really good down payment.
down payment? Buy with cash. If you can't buy what you want with cash, buy something cheaper.
This post was edited on 3/9/15 at 10:30 pm
Posted by SG_Geaux
1 Post
Member since Aug 2004
77929 posts
Posted on 3/9/15 at 10:31 pm to
quote:

down payment? Buy with cash. If you can't buy what you want with cash, buy something cheaper.


I see this all the time on here, but the fact is the EXTREME majority of people simply can not afford to do this.
Posted by WDE24
Member since Oct 2010
54132 posts
Posted on 3/9/15 at 10:32 pm to
Yes they can. If they plan, save and buy a cheap car.
Posted by LSUSkip
Central, LA
Member since Jul 2012
17526 posts
Posted on 3/9/15 at 10:49 pm to
If you aren't having to use money for upkeep every month, just keep it.
Posted by poe tay toes
Member since Jan 2012
326 posts
Posted on 3/9/15 at 10:54 pm to
quote:

Yes they can. If they plan, save and buy a cheap car.


you also have to balance cheap with reliable. below a certain threshold it makes sense to borrow a bit and get something that will hold up for several years with a low probability of mechanical failure.

also worth considering that most people don't really know how to fix much of what goes wrong with a car, so everything that goes wrong is either going to cost them at the mechanic, or be ignored until it leads to a failure that can't be ignored.

the way i see it, if you have to borrow 15 grand to buy a car that won't be in the shop three times a year, make higher than minimum payments at a reasonably low interest rate, and keep the car for at least a couple years after paying it off, you're doing better than if you buy a 5k piece of crap that runs you 2k in annual maintenance and repairs, then has no value when you have to replace it five years later.

in the op's case, much better to keep what he has through college. crv's are pretty reliable and car payment money sitting in my bank account would've been a big deal while i was in college. keeping yourself from overextending is way more significant to me than the perils of borrowing. when budgeting, "probably" is a quick way to find yourself urging the calendar towards your next paycheck.
Posted by LSUtigerME
Walker, LA
Member since Oct 2012
3789 posts
Posted on 3/9/15 at 10:56 pm to
Money Talk board.

If it's dependable and not costing you any upkeep/maintenance, keep it. The longer you own a vehicle the better the return. Just be weary of any upcoming maintenance costs (tires, timing belt, warranty expiration).

quote:


down payment? Buy with cash. If you can't buy what you want with cash, buy something cheaper.

Advice for finacially irresponsible people only. With interest rates where they are, no reason to pay cash.
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