Friday Financial Foul Ups: Poorly Planned Vehicle Purchase Costs $24,000

This week’s Friday Financial Foul Up will feature a guest post by Kelly Whalen. Kelly Whalen is a freelance writer, blogger, and mostly stay-at-home mom to 4 kids. She writes about family and finances at www.thecentsiblelife.com and can often be found on twitter (@centsiblelife), or drinking coffee. Kelly’s writing has been featured on Wisebread, Bargaineering, and Get Rich Slowly. She is also a staff writer at Moolanomy. Enjoy her story and her foul up of a vehicle purchase without the future in mind.

In 2003 my husband and I had 2 children, and 1 car. We had previously been a 2 car family, but our 2nd car, a clunker, had died, so we decided to make do with one car while we paid off the loan on our newer vehicle.

After a year of living this way we had increased our income enough to handle a 2nd car payment, and were fed up with sharing a car in an area that was inaccessible to everything. Being the family planner, I did research and shopped around, but then I made a huge mistake that still impacts our family today.

The Situation

We were looking to buy a 2nd car for our family of 4. We narrowed it down to several vehicles, but I had my heart set on buying a wagon. I set my sights on a VW wagon, I liked the design, I liked the look of the car, and I thought it was just enough room for our family of 4. I also really didn’t want to drive a minivan, I was holding onto my “cool mom” image, I guess. Too cool to drive a minivan.

We purchased our wagon on a whim, when I found it online at a local “no hassle” dealership. We had a small down payment.

A month later I was pregnant with our 3rd child, and the need for a bigger car quickly became a reality.

Where I Fouled Up

By not planning ahead for the possibility of more children, and buying the car without paying off our other vehicle first we ended up having 2 large car payments at the same time.

When our 3rd child was born we had to upgrade to a minivan, and because we waited until after she was born, we did it under duress, and ended up leasing a minivan with terrible terms, and getting such a poor trade-in deal for our sedan that we had to roll money into our lease to pay back the car loan.

Now we drive the same car, but a newer model, which we purchased in 2007, and we’re still paying off.

Approx cost of USED 2002 minivan + interest for 5 years= $27,000

Cost of USED 1999 wagon and interest ($14,000) + 2 year lease on NEW 2004 minivan ($10,000) + cost of NEW 2007 wagon and interest ($27,000) = $51,000

Difference= $24,000

What I Learned

Planning for the possibilities: Planning for a possible 3rd child would have been the smart thing to do. By not planning ahead, and basing a rather large purchase on my wants, rather than my needs or possible future needs of our family, I cost us thousands of dollars.

Delay big purchases: When that wagon (my beloved wagon, “Blue”) broke down this year it was time to say goodbye. We wised up enough to realize that we shouldn’t run out and get another car, since another payment would make our budget beyond tight. Now we are sticking to our goal of paying off our car before we purchase another vehicle.

Perspective on the past can be motivating: If we had purchased a van in 2003, it would be paid for, and we would have significantly higher monthly cash flow and could be saving that money in a car fund. Remembering past mistakes can be frustrating, but let them motivate you to do better in the future.

Plan ahead, but know that plans change: Now I try to plan ahead for everything financially. If we hit a bump in the road it’s easier to handle with some cash in the bank, and less debt over our heads. We have a plan to get out of debt, but it assumes everything stays the same, which it won’t.

———-

Do you like this series? Check Out The Previous Foul Ups:

Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money

70 Responses to Friday Financial Foul Ups: Poorly Planned Vehicle Purchase Costs $24,000
  1. http://fiverr.com/eebest8
    April 19, 2018 | 3:58 pm

    “Thanks again for the blog post.Really thank you! Will read on…”

  2. Health and Fitness
    April 19, 2018 | 4:53 pm

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  3. Health and Fitness
    April 19, 2018 | 5:12 pm

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  4. Health and Fitness
    April 19, 2018 | 9:03 pm

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    April 19, 2018 | 10:12 pm

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  8. Health and Fitness
    April 19, 2018 | 10:54 pm

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  9. Health and Fitness
    April 20, 2018 | 3:58 am

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  10. Health and Fitness
    April 20, 2018 | 6:41 am

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Friday Financial Foul Ups: Poorly Planned Vehicle Purchase Costs $24,000

This week’s Friday Financial Foul Up will feature a guest post by Kelly Whalen. Kelly Whalen is a freelance writer, blogger, and mostly stay-at-home mom to 4 kids. She writes about family and finances at www.thecentsiblelife.com and can often be found on twitter (@centsiblelife), or drinking coffee. Kelly’s writing has been featured on Wisebread, Bargaineering, and Get Rich Slowly. She is also a staff writer at Moolanomy. Enjoy her story and her foul up of a vehicle purchase without the future in mind.

In 2003 my husband and I had 2 children, and 1 car. We had previously been a 2 car family, but our 2nd car, a clunker, had died, so we decided to make do with one car while we paid off the loan on our newer vehicle.

After a year of living this way we had increased our income enough to handle a 2nd car payment, and were fed up with sharing a car in an area that was inaccessible to everything. Being the family planner, I did research and shopped around, but then I made a huge mistake that still impacts our family today.

The Situation

We were looking to buy a 2nd car for our family of 4. We narrowed it down to several vehicles, but I had my heart set on buying a wagon. I set my sights on a VW wagon, I liked the design, I liked the look of the car, and I thought it was just enough room for our family of 4. I also really didn’t want to drive a minivan, I was holding onto my “cool mom” image, I guess. Too cool to drive a minivan.

We purchased our wagon on a whim, when I found it online at a local “no hassle” dealership. We had a small down payment.

A month later I was pregnant with our 3rd child, and the need for a bigger car quickly became a reality.

Where I Fouled Up

By not planning ahead for the possibility of more children, and buying the car without paying off our other vehicle first we ended up having 2 large car payments at the same time.

When our 3rd child was born we had to upgrade to a minivan, and because we waited until after she was born, we did it under duress, and ended up leasing a minivan with terrible terms, and getting such a poor trade-in deal for our sedan that we had to roll money into our lease to pay back the car loan.

Now we drive the same car, but a newer model, which we purchased in 2007, and we’re still paying off.

Approx cost of USED 2002 minivan + interest for 5 years= $27,000

Cost of USED 1999 wagon and interest ($14,000) + 2 year lease on NEW 2004 minivan ($10,000) + cost of NEW 2007 wagon and interest ($27,000) = $51,000

Difference= $24,000

What I Learned

Planning for the possibilities: Planning for a possible 3rd child would have been the smart thing to do. By not planning ahead, and basing a rather large purchase on my wants, rather than my needs or possible future needs of our family, I cost us thousands of dollars.

Delay big purchases: When that wagon (my beloved wagon, “Blue”) broke down this year it was time to say goodbye. We wised up enough to realize that we shouldn’t run out and get another car, since another payment would make our budget beyond tight. Now we are sticking to our goal of paying off our car before we purchase another vehicle.

Perspective on the past can be motivating: If we had purchased a van in 2003, it would be paid for, and we would have significantly higher monthly cash flow and could be saving that money in a car fund. Remembering past mistakes can be frustrating, but let them motivate you to do better in the future.

Plan ahead, but know that plans change: Now I try to plan ahead for everything financially. If we hit a bump in the road it’s easier to handle with some cash in the bank, and less debt over our heads. We have a plan to get out of debt, but it assumes everything stays the same, which it won’t.

———-

Do you like this series? Check Out The Previous Foul Ups:

Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money

70 Responses to Friday Financial Foul Ups: Poorly Planned Vehicle Purchase Costs $24,000
  1. http://fiverr.com/eebest8
    April 19, 2018 | 3:58 pm

    “Thanks again for the blog post.Really thank you! Will read on…”

  2. Health and Fitness
    April 19, 2018 | 4:53 pm

    You are a very smart person!

  3. Health and Fitness
    April 19, 2018 | 5:12 pm

    I precisely had to say thanks once again. I am not sure what I would have handled in the absence of the type of suggestions provided by you on that subject. It had become an absolute frustrating scenario in my position, however , viewing your expert strategy you dealt with that took me to weep for joy. Now i am thankful for the assistance and thus have high hopes you realize what an amazing job you have been providing teaching most people thru your blog. I know that you’ve never encountered all of us.

  4. Health and Fitness
    April 19, 2018 | 9:03 pm

    I truly appreciate this post. I’ve been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again!

  5. News
    April 19, 2018 | 9:44 pm

    Magnificent beat ! I would like to apprentice while you amend your web site, how can i subscribe for a blog site? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast provided bright clear concept

  6. Health Center
    April 19, 2018 | 10:06 pm

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  7. Health and Fitness
    April 19, 2018 | 10:12 pm

    Thank you for sharing superb informations. Your site is so cool. I’m impressed by the details that you’ve on this blog. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the info I already searched all over the place and simply couldn’t come across. What a perfect web-site.

  8. Health and Fitness
    April 19, 2018 | 10:54 pm

    I conceive you have noted some very interesting details , appreciate it for the post.

  9. Health and Fitness
    April 20, 2018 | 3:58 am

    Heya i’m for the first time here. I came across this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me.

  10. Health and Fitness
    April 20, 2018 | 6:41 am

    Great blog here! Also your web site loads up very fast! What host are you using? Can I get your affiliate link to your host? I wish my website loaded up as quickly as yours lol

  11. Health and Fitness
    April 20, 2018 | 7:25 am

    I loved as much as you will receive carried out right here. The sketch is tasteful, your authored material stylish. nonetheless, you command get bought an shakiness over that you wish be delivering the following. unwell unquestionably come further formerly again as exactly the same nearly very often inside case you shield this hike.

  12. Health and Fitness
    April 20, 2018 | 8:30 am

    What i do not realize is actually how you’re no longer really a lot more smartly-appreciated than you may be now. You’re so intelligent. You understand thus significantly in relation to this matter, produced me personally consider it from so many various angles. Its like men and women are not interested until it is something to accomplish with Woman gaga! Your personal stuffs nice. Always handle it up!

  13. News
    April 20, 2018 | 9:53 am

    I do trust all of the concepts you have introduced on your post. They are very convincing and can certainly work. Nonetheless, the posts are too brief for novices. May you please prolong them a bit from subsequent time? Thank you for the post.

  14. Health and Fitness
    April 20, 2018 | 2:52 pm

    Very nice design and good content material , absolutely nothing else we need : D.

  15. Health and Fitness
    April 20, 2018 | 4:15 pm

    I have been surfing online more than 3 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all site owners and bloggers made good content as you did, the internet will be much more useful than ever before.

  16. News
    April 20, 2018 | 9:19 pm

    You are my intake , I own few blogs and occasionally run out from to post .

  17. Health and Fitness
    April 20, 2018 | 10:04 pm

    I dugg some of you post as I cogitated they were invaluable invaluable

  18. Health and Fitness
    April 21, 2018 | 2:07 am

    hello!,I like your writing so much! proportion we keep in touch more approximately your article on AOL? I need an expert in this space to solve my problem. May be that’s you! Looking ahead to peer you.

  19. Health and Fitness
    April 21, 2018 | 2:33 am

    I am now not sure where you are getting your info, but great topic. I needs to spend some time learning more or working out more. Thanks for fantastic info I was on the lookout for this info for my mission.

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