If you could get a killer deal

If you could get a killer deal

Joined: May 25th, 2006, 10:01 pm

May 16th, 2012, 12:19 pm #1

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
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Joined: May 25th, 2006, 12:05 am

May 16th, 2012, 1:41 pm #2

buy ONLY if I wasn't relying on a mileage check to pay the payment and insurance on the vehicle.

It's great that the mileage check will make the payment - but if something were to happen, and there is no mileage check in the future, could you make the payment and keep up the insurance on the new vehicle?

IMO - it's like trading for groceries before the chicken has even laid the eggs.
glendaMO
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Joined: May 25th, 2006, 10:01 pm

May 16th, 2012, 1:59 pm #3

I would be able to make the payment and most of insurance with the gas savings. The mileage check would go to pay it off early.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
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Joined: May 30th, 2006, 2:01 pm

May 16th, 2012, 3:31 pm #4

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
because like you, I live in a rural area and like you, I drive a lot of miles. It's difficult to appreciate how much time and energy is sucked up by aging vehicles not to mention money. I've spent over $4000 on vehicle repairs in 2012. Not a typo. I've spent hours trying to get a car to this mechanic or that one.

I was in this same situation years ago ago and we decided to buy a car with payments. Frankly, paying that monthly payment was a joy compared to dealing with constant problems on my previous vehicle. I wrote out the check every month and I was happy to do it. Did I pay a lot more for the car due to interest? Yes, but was it worth it? To me it was. I have small kids and there is a large part of my drive with no cell phone coverage. It's worth a lot to not worry about breaking down.

So, here we are again with aging vehicles and I'm not sure what we're going to do. If a killer deal came along for me, I'd probably jump on it.
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Joined: June 5th, 2006, 5:33 pm

May 16th, 2012, 3:55 pm #5

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
What I would do is dump the Explorer before it needs the tranny, and buy a used car with good gas mileage, and start saving for the next killer deal.

------
The road to success is always under construction.
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Joined: May 28th, 2006, 3:48 am

May 16th, 2012, 4:24 pm #6

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
What mileage do the new and old cars get? What would the monthly payment be?

I'm loathe to take on any debt, but I might in this case if I couldn't find a good used car. That would also be my first route, like Tnetter.
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Joined: October 28th, 2005, 10:05 am

May 16th, 2012, 4:28 pm #7

I would be able to make the payment and most of insurance with the gas savings. The mileage check would go to pay it off early.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
Or just end up keeping both cars? In which case that reduces the savings a LOT.... you'd still be paying to register/insure and pay taxes on both cars....

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Joined: September 24th, 2009, 3:01 pm

May 16th, 2012, 5:14 pm #8

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
What you're saying is now you have a car with great potential for repair expense that costs you x per month.

You're asking me if you should trade that scenario to:

You'd have a car with limited potential for repair expense that costs you x minus 3.

As long as you get rid of the explorer. Uh, h311 yeah!
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Joined: May 21st, 2006, 4:46 am

May 16th, 2012, 5:55 pm #9

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
I would have a hard time doing this if I had NO other debt (it's hard to go back in) or a LOT of other debt. I vote for a good used car, not necessarily a $2,000 Dave Ramsey special that may need a lot of work. Also, if you will be putting a lot of miles on this for work, I wouldn't want to be wearing my new car out and further reducing its value. But I wouldn't want to be stuck, either. I could deal with a happy medium.
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Joined: November 20th, 2006, 5:53 pm

May 16th, 2012, 9:01 pm #10

on a brand new vehicle, but had to borrow to buy it....and if the savings in gas mileage was going to more than pay the monthly payment...would you buy it?

But wait....

Let's play this out a bit. Let's say you have a five year loan. Let's say there is no way your current gas-guzzling vehicle is going to last five years. So what would have bought, when would have bought it, and what would the gas mileage have been when you DID replace the gas guzzler?

It's not a cut-and-dried type of thing to consider.

When I bought the Explorer, it didn't matter that it didn't get great gas mileage, because I really didn't drive that much. But now I drive for work, and my monthly mileage check doesn't even pay my gas expense, let alone pay for the wear and the tear. The Explorer is running along very nicely but does need a new tranny. For now, I can get by with it. But right now, it's worth $3500. Once the tranny goes kaput, it will be worth nothing and will need $2000 put into it to be worth anything again. SO...theoretically, it is "worth" $5500 to me as it right now, because I could sell it for $3500 and not have to spend $2000. Am I thinking clearly?

My husband gets a supplier discount on a new vehicle. I literally can pay the payment and have some left over with the amount I would save on gas in purchasing a low mpg vehicle and can buy it for the price of a program vehicle. I could use my mileage check to pay it off more quickly.

I am willing to keep driving the Explorer--I love that vehicle! But dh is starting to talk about buying. We have never bought a new vehicle. Just not sure if it's the thing to do or not. Trying to weigh it all out.

Blessings,

Bethann
Matthew 6:33
http://gettingtheresimply.blogspot.com/

"Live in such a way that you would not be ashamed to sell your parrot to the town gossip." --Will Rogers
But if the deal was right, I might do it. If you've run the numbers and the Explorer is costing you money, and you're ABSOLUTELY certain you can afford the debt, I say go for it. But sell the Explorer and apply anything you get for it to the debt on the new vehicle. Keeping both is counter productive.
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