Committing Personal Finance Sin – Why I Bought a NEW Car

Photo by Resedabear

Photo by Resedabear

Wow, a month off, a new site, a new perspective on a lot of things. Man, it feels good to be writing again.  That said, I solved one of my biggest issues that I needed to solve over the summer, getting a new car.  When I say new, this was not a “new to me” car, this thing had 4 miles on it when I drove it off the lot.

Some of you that have been reading for a while will remember my post, “Dude, I Totaled My Car” and know that I really needed a friggin vehicle in a bad way.  I really wish I was able to live like some of the commenters of Matt’s post at FCN, and sustain myself without a car.  However, that wasn’t feasible for me.  So here is how this all went down and how I ended up with a 2010 car a week after it came out, surely a personal finance sin if ever there was one.

The Advice Along The Way (good advice I didn’t listen to)

I talked to several bloggers, several friends, and even a friend’s father that is a certified financial planner.  Without exception, everyone suggested that I get a used vehicle.   Now, some people were more receptive to the idea of a new car (Mapgirl being one of them), but for the most part, it was “find a used car.”

I listened to the personal finance hour’s episode on buying a car, I read Ramit’s post about why he bought a new vehicle, I even took some tips from The Millionaire Next Door.

A week prior to purchasing my NEW vehicle I spoke with Baker from Man vs. Debt.  When I started telling him about my plans to purchase a new vehicle he plainly said (and I paraphrase, because it was gchat and wouldn’t make total sense out of context), “It sounds like you WANT a new car.  There are good late model cars out there, it just takes hard work to find them.”  I agree with Baker, I did “want” a new car, but primarily because it was the process of this search that was slowly killing me.

The Process (it sucked)

The process of buying a car should be kind of fun, after all, it’s a big purchase, its something that a lot of people associate as an item that “defines” you.  I don’t really buy into that, but whatever.  I am here to say, the process sucks.  I mean, it really sucks.  Especially if you are looking for a used car.

Maybe its just me, I don’t trust used car salesmen, and a clean carfax report wasn’t going to make me feel any better.  Ebay, well that just took too long and I want to at least see the car before buying it.  Carmax, well that is actually a good option, but all of their vehicles were quite expensive for what you were getting.  I decided at the beginning of the process that if I was going to finance anything, I may as well just get a new damn car.

I tried craigslist.  I really tried craigslist a lot.  I called a ton of people, I saw a bunch of cars.  I trusted no one, and didn’t like a lot of the vehicles I tried out for the money they were asking.  Why would I spend all of the insurance money I received for my Jetta ($4200) on a car that was much inferior to that car?

Finally, I went down to a dealership and practically bought a 2002 Civic.  Something didn’t feel right about the car, but the money was acceptable, and I was a dude that was at the end of his rope.  They pulled a fast one on me and threw away the warranty on the car as I was about to sign the papers.  I walked out.

“Brian, you aren’t going to be happy or comfortable in a late model used car with over 100K miles on it.  Get yourself a new f***ing car.”

A friend who I trust said, “Brian, you aren’t going to be happy or comfortable in a late model used car with over 100K miles on it.  Get yourself a new f***ing car.”  He was right.  I knew which cars were in my price range, and what I would be satisfied with.  Knowing it was towards the end of the year, I wanted to see if I could find what I wanted (2009 Hyundai Sonata) as a used car.

Sure enough there was one around the corner from me.  If I went that route I could have saved a few thousand dollars, however it already had almost 30,000 miles on it from the past year.  I was still close to buying it.  Then I called to find out about all the warranty’s (which is one of the reasons I was going Hyundai) and found out that the 10 year/100,000 mile warranty was void for second owners.  Also, the vehicle was already halfway to voiding out the 5 year/60,000 mile bumper to bumper warranty.  I said screw it, and was off to find a new 2009 car.

Because of cash for clunkers, I wasn’t able to find the exact model I wanted, in the color I wanted (pearly white is a shitty color for a car, if you want a Sonata in pearly white, call any dealership, that’s all they have left).  J. Money from Budgets are Sexy stated advised that if I was going to buy a new car and go into debt to do it, I may as well get all the bells and whistle I want and not compromise.  I followed his advice, found myself a 2010 in the model I wanted, color I wanted, extras I wanted and then started haggling.  The next day, I bought the car.

Why I Went New (and why what was best for me broke the personal finance mold)

I really took to heart what Ramit said in his post a few years back.  I am paying for value.  Also, since this process sucked something big, I didn’t want to have to do it again two years from now if my tranny on my used car blew up.  For the following reasons I went new.

  • Dollar for dollar this car is much more likely to last me 10+ years of driving.
  • A new car is cheaper to maintain, especially under warranty.
  • Time was of the essence.  2.5 months without a car and relying on my friends all summer made me expedite this process.  If I had six months to search for the “perfect used car”, maybe I would have purchased used.
  • This is a big enough car that I can feel safe growing into it if my family were ever to expand beyond myself (ie, I won’t need to replace it because its not big enough for transporting kids).
  • That smell really is something magical.
  • I know everything about the history of my vehicle.  This will be important if I ever have to resell it.  I know where its been, whats been done to it and I don’t have to worry about  previous owners.
  • I was also able to get decent financing.  Had to put 0 money down (which may not be advisable based on your situation) which allowed me to max out my Roth IRA for the rest of the year (something I was going to do in the next few months anyway) and invest more money in a marketplace that is likely to rebound huge in the next year or two.  This also allowed me to keep extra cash on hand in case of unexpected emergencies in a bad economy (if I bought used or put a big down payment on the car, that money would just *poof* gone).

To the Naysayers (I want to hear from you guys)

This may not have been a great financial decision for me.  I went $19,000 deeper into debt on a new car.  However, I don’t think this was a bad decision.  It was just a decision that was neither good nor bad.  Before you hit me upside the head too hard, it should be known my financial goals are still intact.  I am still able to save close to $1000 a month.  I still maxed out my Roth IRA for 2009.  I am still able to contribute 20% of my salary to my 401(K).  As for depreciation, I didn’t buy a Benz, I bought a Sonata.  It will depreciate a few thousand the first year, and I am not reselling it anyway.

So what now?  I want you guys to bring it in the comment section.  Give me your thoughts and perspectives.

6,417 Responses to Committing Personal Finance Sin – Why I Bought a NEW Car
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  3. full coverage car insurance Brooklyn NY
    December 15, 2018 | 6:32 am

    Hi there! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa? My site addresses a lot of the same subjects as yours and I feel we could greatly benefit from each other. If you are interested feel free to send me an e-mail. I look forward to hearing from you! Great blog by the way!

  4. online kredit deutschland
    December 15, 2018 | 6:56 am

    This is so nice and so romantic, I luv it! I think it's fantastic when you also scrap the inside of your card. Most of the time I don't come to it, to much time, but I really like it. Thanks for the inspiration you bring, also to the TPS blog :-)Hugs Ing

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  9. cheapest car insurance Palmdale CA
    December 15, 2018 | 8:33 am

    Re: lack of communication. YES! It bug the hell out of me that the humans presume to know everything there is to know about Cylons when, in fact, they know sweet F-A about this new human variety. They're machines! Duh! They can't/don't feel/love/play rugby/have orgasms. I also hope Starbuck told them off screen that, oh, by the way, there are people in desperate need of rescue from marauding, raping Cylons on Caprica and probably the other colonies as well. That seems pretty imperative to me. Presumably if they rescue some people, that count at the beginning of each episode will go up at some point.

  10. Delorse
    December 15, 2018 | 8:42 am

    Well I sincerely liked studying it. This information offered by you is very helpful for accurate planning.

  11. look auto insurance El Monte CA
    December 15, 2018 | 9:06 am

    Gasp moi j’ai le deux trois et quatre, j’ai sauté dessus quand il est sortit et dévoré ^^Le un, en fait, je l’ait lu alors que je devais l’offrir à une amie donc j’ai pas pu xD le garder !

  12. car insurance rates Sault Sainte Marie MI
    December 15, 2018 | 9:51 am

    Respected VijaySir,I am from ,Currently staid at Sydney,Australia for Dental Studying.After read above article just want to say that “Its is really very helpful”.A specially I downloaded your share ppt files.I shared with all mine gujju-classmates.They also thankful to you.I am blogging for and -My and Mine all Gujju friend’s wishes with you for your great blogging work..

  13. look auto insurance Rock Hill SC
    December 15, 2018 | 10:35 am

    From all of us at BLISS RAW CAFE & ELIXIR BAR we thank you for making BLISS a part of you and your husbands roadtrip. We are especially greatful for the kind review. Incidently the Mint Chocolate Cake was made by our Executive Chef Kelly Dennis…former Executive Chef/Pastry Chef of 105degrees! Kelly Dennis is currently menu testing new recipies that will make their debut in December!!!! A tip of the hat to you Amber Shea for sharing your mouth watering roadtrips with everyone who follows your almost vegan blog!!!

  14. Adriane
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  15. non owners auto insurance quotes Fairburn GA
    December 15, 2018 | 11:19 am

    Unfortunately we were a victim of this. Eventhough our sweet puppy seemed healthy she was a good weight there were warning signs. She smelled bad when we picked her up and then she started loosing hair. She had demodectic manger and life threatening dysplasia. She only lived to be 4 and a half months old and the person that sold had no compassion.

  16. auto insurance quotes Seymour IN
    December 15, 2018 | 11:28 am

    it is my opinion that your comments were worded ( in some places) that were not constructive to the post as a whole. Im not an admin for the site, just a humble participant. No one gets anywhere, gains knowledge, or better understanding by refusing to try and understand the opposing perspective.My quotes were just a way of illustrating where that perspective is coming from.Take it how you will.

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Trackback URL http://mynextbuck.com/committing-personal-finance-sin-why-i-bought-a-new-car/trackback/

Committing Personal Finance Sin – Why I Bought a NEW Car

Photo by Resedabear

Photo by Resedabear

Wow, a month off, a new site, a new perspective on a lot of things. Man, it feels good to be writing again.  That said, I solved one of my biggest issues that I needed to solve over the summer, getting a new car.  When I say new, this was not a “new to me” car, this thing had 4 miles on it when I drove it off the lot.

Some of you that have been reading for a while will remember my post, “Dude, I Totaled My Car” and know that I really needed a friggin vehicle in a bad way.  I really wish I was able to live like some of the commenters of Matt’s post at FCN, and sustain myself without a car.  However, that wasn’t feasible for me.  So here is how this all went down and how I ended up with a 2010 car a week after it came out, surely a personal finance sin if ever there was one.

The Advice Along The Way (good advice I didn’t listen to)

I talked to several bloggers, several friends, and even a friend’s father that is a certified financial planner.  Without exception, everyone suggested that I get a used vehicle.   Now, some people were more receptive to the idea of a new car (Mapgirl being one of them), but for the most part, it was “find a used car.”

I listened to the personal finance hour’s episode on buying a car, I read Ramit’s post about why he bought a new vehicle, I even took some tips from The Millionaire Next Door.

A week prior to purchasing my NEW vehicle I spoke with Baker from Man vs. Debt.  When I started telling him about my plans to purchase a new vehicle he plainly said (and I paraphrase, because it was gchat and wouldn’t make total sense out of context), “It sounds like you WANT a new car.  There are good late model cars out there, it just takes hard work to find them.”  I agree with Baker, I did “want” a new car, but primarily because it was the process of this search that was slowly killing me.

The Process (it sucked)

The process of buying a car should be kind of fun, after all, it’s a big purchase, its something that a lot of people associate as an item that “defines” you.  I don’t really buy into that, but whatever.  I am here to say, the process sucks.  I mean, it really sucks.  Especially if you are looking for a used car.

Maybe its just me, I don’t trust used car salesmen, and a clean carfax report wasn’t going to make me feel any better.  Ebay, well that just took too long and I want to at least see the car before buying it.  Carmax, well that is actually a good option, but all of their vehicles were quite expensive for what you were getting.  I decided at the beginning of the process that if I was going to finance anything, I may as well just get a new damn car.

I tried craigslist.  I really tried craigslist a lot.  I called a ton of people, I saw a bunch of cars.  I trusted no one, and didn’t like a lot of the vehicles I tried out for the money they were asking.  Why would I spend all of the insurance money I received for my Jetta ($4200) on a car that was much inferior to that car?

Finally, I went down to a dealership and practically bought a 2002 Civic.  Something didn’t feel right about the car, but the money was acceptable, and I was a dude that was at the end of his rope.  They pulled a fast one on me and threw away the warranty on the car as I was about to sign the papers.  I walked out.

“Brian, you aren’t going to be happy or comfortable in a late model used car with over 100K miles on it.  Get yourself a new f***ing car.”

A friend who I trust said, “Brian, you aren’t going to be happy or comfortable in a late model used car with over 100K miles on it.  Get yourself a new f***ing car.”  He was right.  I knew which cars were in my price range, and what I would be satisfied with.  Knowing it was towards the end of the year, I wanted to see if I could find what I wanted (2009 Hyundai Sonata) as a used car.

Sure enough there was one around the corner from me.  If I went that route I could have saved a few thousand dollars, however it already had almost 30,000 miles on it from the past year.  I was still close to buying it.  Then I called to find out about all the warranty’s (which is one of the reasons I was going Hyundai) and found out that the 10 year/100,000 mile warranty was void for second owners.  Also, the vehicle was already halfway to voiding out the 5 year/60,000 mile bumper to bumper warranty.  I said screw it, and was off to find a new 2009 car.

Because of cash for clunkers, I wasn’t able to find the exact model I wanted, in the color I wanted (pearly white is a shitty color for a car, if you want a Sonata in pearly white, call any dealership, that’s all they have left).  J. Money from Budgets are Sexy stated advised that if I was going to buy a new car and go into debt to do it, I may as well get all the bells and whistle I want and not compromise.  I followed his advice, found myself a 2010 in the model I wanted, color I wanted, extras I wanted and then started haggling.  The next day, I bought the car.

Why I Went New (and why what was best for me broke the personal finance mold)

I really took to heart what Ramit said in his post a few years back.  I am paying for value.  Also, since this process sucked something big, I didn’t want to have to do it again two years from now if my tranny on my used car blew up.  For the following reasons I went new.

  • Dollar for dollar this car is much more likely to last me 10+ years of driving.
  • A new car is cheaper to maintain, especially under warranty.
  • Time was of the essence.  2.5 months without a car and relying on my friends all summer made me expedite this process.  If I had six months to search for the “perfect used car”, maybe I would have purchased used.
  • This is a big enough car that I can feel safe growing into it if my family were ever to expand beyond myself (ie, I won’t need to replace it because its not big enough for transporting kids).
  • That smell really is something magical.
  • I know everything about the history of my vehicle.  This will be important if I ever have to resell it.  I know where its been, whats been done to it and I don’t have to worry about  previous owners.
  • I was also able to get decent financing.  Had to put 0 money down (which may not be advisable based on your situation) which allowed me to max out my Roth IRA for the rest of the year (something I was going to do in the next few months anyway) and invest more money in a marketplace that is likely to rebound huge in the next year or two.  This also allowed me to keep extra cash on hand in case of unexpected emergencies in a bad economy (if I bought used or put a big down payment on the car, that money would just *poof* gone).

To the Naysayers (I want to hear from you guys)

This may not have been a great financial decision for me.  I went $19,000 deeper into debt on a new car.  However, I don’t think this was a bad decision.  It was just a decision that was neither good nor bad.  Before you hit me upside the head too hard, it should be known my financial goals are still intact.  I am still able to save close to $1000 a month.  I still maxed out my Roth IRA for 2009.  I am still able to contribute 20% of my salary to my 401(K).  As for depreciation, I didn’t buy a Benz, I bought a Sonata.  It will depreciate a few thousand the first year, and I am not reselling it anyway.

So what now?  I want you guys to bring it in the comment section.  Give me your thoughts and perspectives.

6,417 Responses to Committing Personal Finance Sin – Why I Bought a NEW Car
  1. poker
    December 15, 2018 | 6:05 am

    Awesome post. I’m a regular visitor of your blog and appreciate you taking the time to maintain the excellent site. I will be a frequent visitor for a long time.

  2. Yu
    December 15, 2018 | 6:18 am

    I think this is a real great post.Really thank you! Really Cool.

  3. full coverage car insurance Brooklyn NY
    December 15, 2018 | 6:32 am

    Hi there! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa? My site addresses a lot of the same subjects as yours and I feel we could greatly benefit from each other. If you are interested feel free to send me an e-mail. I look forward to hearing from you! Great blog by the way!

  4. online kredit deutschland
    December 15, 2018 | 6:56 am

    This is so nice and so romantic, I luv it! I think it's fantastic when you also scrap the inside of your card. Most of the time I don't come to it, to much time, but I really like it. Thanks for the inspiration you bring, also to the TPS blog :-)Hugs Ing

  5. Situs DominoQQ
    December 15, 2018 | 7:30 am

    Hello there. I discovered your website by the use of Google while searching for a comparable subject, your website got here up. It appears good. I have bookmarked it in my google bookmarks to visit then.

  6. objek wisata di Indonesia
    December 15, 2018 | 7:36 am

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  7. react native tutorial android
    December 15, 2018 | 8:12 am

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    December 15, 2018 | 8:19 am

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  9. cheapest car insurance Palmdale CA
    December 15, 2018 | 8:33 am

    Re: lack of communication. YES! It bug the hell out of me that the humans presume to know everything there is to know about Cylons when, in fact, they know sweet F-A about this new human variety. They're machines! Duh! They can't/don't feel/love/play rugby/have orgasms. I also hope Starbuck told them off screen that, oh, by the way, there are people in desperate need of rescue from marauding, raping Cylons on Caprica and probably the other colonies as well. That seems pretty imperative to me. Presumably if they rescue some people, that count at the beginning of each episode will go up at some point.

  10. Delorse
    December 15, 2018 | 8:42 am

    Well I sincerely liked studying it. This information offered by you is very helpful for accurate planning.

  11. look auto insurance El Monte CA
    December 15, 2018 | 9:06 am

    Gasp moi j’ai le deux trois et quatre, j’ai sauté dessus quand il est sortit et dévoré ^^Le un, en fait, je l’ait lu alors que je devais l’offrir à une amie donc j’ai pas pu xD le garder !

  12. car insurance rates Sault Sainte Marie MI
    December 15, 2018 | 9:51 am

    Respected VijaySir,I am from ,Currently staid at Sydney,Australia for Dental Studying.After read above article just want to say that “Its is really very helpful”.A specially I downloaded your share ppt files.I shared with all mine gujju-classmates.They also thankful to you.I am blogging for and -My and Mine all Gujju friend’s wishes with you for your great blogging work..

  13. look auto insurance Rock Hill SC
    December 15, 2018 | 10:35 am

    From all of us at BLISS RAW CAFE & ELIXIR BAR we thank you for making BLISS a part of you and your husbands roadtrip. We are especially greatful for the kind review. Incidently the Mint Chocolate Cake was made by our Executive Chef Kelly Dennis…former Executive Chef/Pastry Chef of 105degrees! Kelly Dennis is currently menu testing new recipies that will make their debut in December!!!! A tip of the hat to you Amber Shea for sharing your mouth watering roadtrips with everyone who follows your almost vegan blog!!!

  14. Adriane
    December 15, 2018 | 11:05 am

    Please let me know where you got your theme. Bless you

  15. non owners auto insurance quotes Fairburn GA
    December 15, 2018 | 11:19 am

    Unfortunately we were a victim of this. Eventhough our sweet puppy seemed healthy she was a good weight there were warning signs. She smelled bad when we picked her up and then she started loosing hair. She had demodectic manger and life threatening dysplasia. She only lived to be 4 and a half months old and the person that sold had no compassion.

  16. auto insurance quotes Seymour IN
    December 15, 2018 | 11:28 am

    it is my opinion that your comments were worded ( in some places) that were not constructive to the post as a whole. Im not an admin for the site, just a humble participant. No one gets anywhere, gains knowledge, or better understanding by refusing to try and understand the opposing perspective.My quotes were just a way of illustrating where that perspective is coming from.Take it how you will.

  17. poker online
    December 15, 2018 | 12:19 pm

    Hi, i believe that i noticed you visited my weblog so i came to go back the favor?.I am attempting to in finding things to enhance my site!I guess its adequate to use some of your concepts!!

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