Thanks!Dawn💖and Happy holidays to you and your family. I drive a 15 year old beater beater (I don’t want to put extra garbage on our planet and it is still moving. ) I love your advice! Also you crack me up😀.☮️💟🖖CC
We never had a car payment. My husband had a habit of always buying a few years old and paying cash. At one time, our two daughters( in high school and college) and I drove three Toyota Corollas. My husband had a van. There are only 2 of us now, so we bought a new Toyota Rav4 in 2022 and still have an older van. I remember what a relief I felt when we paid off our house it was more than 10 years ago.
Cars are crazy expensive. I'm thrilled I was able to buy a 2003 Toyota Camry, with 440K kilometers or 273K miles on it, for $850 Cdn or just under $600 US last year. It was well maintained by the previous owners, is rust-free, drives like a charm & has great air conditioning in the summer & heats quickly in our cold, Canadian winters. Other than replacing the alternator this past month, I've only had regular maintenance costs. I am truly blessed. 🚙
Rust-free - that’s lucky! I wonder if they got it undercoated every year before you bought it. We have two Toyota Prius(es) - one is just about at 300,000. Hope to have it as long as possible! The other one we bought when it had more km on it, so we’ll likely be replacing it in 2025. Toyota ❤
Hey mom. I just wanted to share my experience. I have been driving high mileage vehicles for 20 years and only had one lemon. High mileage are the best vehicles you can get for 2 reason. First is price because everybody is afraid of them. Second is that by the time a vehicle hits 200k most of the kinks have been worked out so long as they were maintained properly. Vehicles love to be driven so a high mileage car that was maintained well will give very little problems. I just bought a 2004 prius with 220k miles. Only cost me $3200 and I'm loving it! Runs amazing and get 45mpg!
Janet Andrews hello from Virginia: Dawn that is so true I hate a car payment I currently have 104,000 thousand miles on my Kia Forte 2016 and my dealership wants me to upgrade but is only offering me $4000 Kelly blue book value and because I've never had any issues with my car I plan to ride it until the wheels come off , because with a new car payment I can use that money to put into investments to be more secure in retirement thanks for the updates .
I also bought and paid my house in 15 years. Then I bought my house again, to buy a small shopping center , and I paid it off. Real Estate is a good investment.
We used real estate to build our retirement funds. Agree with you for our time frame of living. Now, I’m just glad our son will be able to use some of it, too hard for young people to build up and buy the same way now. I just saw a 3 bedroom house up for sale for 4 owners to share like a timeshare! Crazy.
My husband is a builder by trade. Working for the man now but will retire next year. And the plan is buying old fixer uppers and he and my son and a friend will fix them up and sell. Or rent out. Real estate is always the best way to go for long term investment
@@cjhoward409 it’s a different story in Canada- we had terrible luck when we tried to have tenants, with references. Was cheaper to pay to keep it empty! Takes a 4 month notice and THEN eviction process can start. Not my thing.
this is a timely episode considering the payment costs of a car these days. I own an older pickup truck that runs and drives great but the paint had become less shiny and it needed a deep clean. Yellowing headlights etc. I was looking at the cost of a newer truck, used but only two to three years old. What I saw shocked me... 800$ a month payments before the cost of full coverage insurance. I stopped looking and instead ordered a new set of crystal clear headlights in my truck for 100 bucks along with deep clean and wash supplies. I also bought a new set of tires and had them installed for around 600 bucks ... I am now spending what I would be spending on a new truck payment on my own truck and have had two offers from people to buy it from me. The point is don't get caught up in the sales hype.
Driving old cars has been a major way of saving money for me. My current one is a 2000 Ford Taurus, with 87,000 miles. I got it for $1,900 when it had $57,000 miles, about six years ago. I will nurse this car along, as I don't drive it except every two weeks or so, and I see no reason to buy another one. But old cars are everywhere, through private sellers, and some have very low miles. If all you want is basic transportation, that is the way to go.
We used to have two cars sold, one when hubby retired and put that money in a savings account and have a rav 4 2014 has 100,084 miles we check the oil and do regular maintenance and we have a garage so that helps in the winter time and we will try to put a coat of wax on it this coming spring. This car will have to last.
When I read the title, I thought "WOW - a house payment as low as a car payment"! Good job :) House prices are so high now this would most likely only be true if you compare a house payment from yesteryear to an expensive car payment of today. I will pay cash for my next car when I replace my 2007 Honda Accord. It's still great :)
My little pickup is 35 years old. I paid $800 for it 15 years ago. I don't plan to ever have a car payment. If I can't pay for it I'm not buying it. 🛻 Sacramento, California USA 🇺🇸
I agree. We are retired. We do have a car payment. 789 a month!!! Our home is paid off. I’m going to start doubling up on payments. We only owe 18000 on it. We really need a truck. I think we will always have a vehicle payment. I’ve got about 15,000 saved. But I don’t think we will use the savings. I’m glad you talked about this. I’m glad I’m not the only one with this dilemma
I wonder what other retirees do. We live out on property and haul our own water. A truck is necessary. Our truck now has 259,000 on it! We keep it up but it can go at any time
A 'new' to you car has to be budgeted for like everything else. As soon as you buy a car you have to start saving. I keep my cars for about 10 years, basically until they are no longer dependable for the job they are needed. I bought a new truck as I live in the tropics, in the mountains, live alone and am 74. It cost me $25000, so I save in a special account $250 per month. Apart from the cars here in the tropics I have never bought a new car.
We have bought certified pre-owned cars for many years and paid cash. We used to pay around $13K for a two- or three-year-old car, and that was possible for our savings to handle. Now, 6 years after our last car purchase, we would have to pay at least $20K for a comparable car. Our savings can still handle it, but it does make you think about whether you really need a newer car. We are both older and may not be driving much longer, so it might be worth keeping our current car. Another thing to think about is the increase in car insurance and property tax if one buys a newer car.
please NEVER buy a used car with a car payment, the interest is much higher, if you NEED to do a car payment buy a NEW car, and make sure you buy it between oct 31, and december if you have the money please buy a good used car and pay it in FULL in cash
My credit union gives the same rate for 2016 - 2025 model years (considered new), and the rates are competitive. I just helped my brother get a 2023 Chrysler Pacifica that had 10K miles for 28K! Got the A+ rate for 48 months and put about 10K down for $500/mo payment. With a 7 year, 120K bumper to bumper warranty (added to the vehicle price, about $1800.00). If you're careful, you can still buy used and do okay! 🙂👍
I don’t know. Depends on the car and the interest rate. My last car payment on a used car was 3.2 %. The same new car cost $10,000 more and the new car interest rate was 2.7%. Not much difference. I think it also depends on your credit score. Also, we can always throw extra money every month on the principle. I paid off my last car 13 months earlier by paying extra principle and saving that monthly interest. But yes, new car loans are less interest BUT, too overpriced !!!
I always bought cars that were 1 to 3 years old and low mileage. I took out a low interest credit union loan and each car was a great deal to me. Never paid much in interest and repairs were minimal. This summer I planned to do the same thing. The credit union rate was close to 9% I bought new with a 1.5 interest rate. New was actually cheaper and I shouldn’t have to make any major repairs for years. I was shocked that new was actually a better deal. I think it just depends on what rates look like and if new car prices aren’t much more than used. I would never buy a really old car because I don’t have the skills to fix it myself.
I bought my very first car, 30 years ago, with cash that I had saved up and ever since I have put the equivalent of a monthly car payment away - the following two cars I also paid cash. Never had a car payment in my life. I hope people read your comment very closely.
I am in my late 60’s and my husband in his 70’s. We pay cash for cars. The last car we bought was $7200 with 120,000 miles. We have a sinking fund to replace car and when we need a different car, we use what money is in the sinking fund account. We generally get around 5 years for our cars. We live in NH so also need an all wheel or four wheel drive vehicle.
I hope to keep my current vehicle, a Corolla, for many years. When it’s time to buy a new-to-me vehicle, I definitely plan to pay cash. I’ve bought seven vehicles in my life, and I’ve paid cash for five. I’ve never bought new, always 2+ years old.
Yes a lot of people are talking about this on their videos, the prices of vehicles has skyrocketed to the point where they are unaffordable for most people, most people can only buy used! These payments are higher than some people's mortgages! Especially if you bought your house 10 or 15 years ago.
I’m with you. I hope I never have a car payment again. My husband has been driving his truck for 20 years while we 😊save for the next one. I HAVE discovered that a new car requires low to no maintenance except for, you know, oil changes and minor stuff like that.
When we started making house payments my mother gave us good advice. Every month pay extra on the mortgage principle. So I did that and after four years it was as if we had made payments for 8 1/2 years.!!
Hi Money Mom, I can't fathom a mortgage as low as $600.00 or $700.00. Granted, in the 90s that was a decent amount of money. Inflation plus low supply in our HCOL suburb in Houston means $700.00 wouldn't even pay for a 1 bedroom apartment now. We were able to buy a 1,700 sqft 50 year old fixer upper in 2019 for $209,000 and that was Cheap then!! 😅 Our mortgage was only $700.00 more than our apartment rent was so it felt like a no brainer. We were hoping to stay here for 5 years, apply sweat equity & a few big repairs then sell & buy a newer home, but now it may be another 5 before that happens. For now we're grateful to have a home as a lot of Millenials do not. Thanks for the video!
It really would involve how much driving you do. Around town for errands and stuff, buy something cheap even with added miles, point a to point b. Of course, everyone has to worry about road trips. For the odd long distance trip it is cheaper to rent a car then to put wear and tear on your own car. Buying something cheaper out right with rental options for long trips ... your money ahead! Who wants payments when you're older!
@@CentsibleLivingWithMoneyMom We always rent a car for long road trips. My husband is very careful not to add unnecessary wear and tear to our cars. Plus, we usually go to the beach. Between the sand and all the eating we do in the car, let's just say I'm glad I don't have to clean it!
@DS-mw8yu You bring up a very good point. I'm just more comfortable in my own car. We've had several long trips this year. We usually only have 2 trips a year. One is 7 hours away and the other 12 hours away. Fortunately, our vehicle has been very reliable.
@oldegoatee8450 It's a hard decision for me. My car is a lemon, but I love it. It needs about $10,000 worth of work. I carry around oil and fluid for the radiator. I watch my gauges carefully. But I only drive it around town. I wouldn't feel comfortable taking a trip in it. I hope your vehicle lasts, too!
It's all relative. It felt weird to buy my '99 Toyota Corolla for $14K when I knew my parents paid $20K for their house. The payments for my Corolla were $189 per month. After 25 wonderful years with my Corolla, someone hit it and it was totaled (only 150K miles - so much life left!). I didn't want a payment either, so I paid cash for a new Honda. Cars are very expensive now!
I’m still driving my 09 Honda. Has 247,000 miles on it but we’ve only replaced the starter and a wheel bearing during the years (it was used when we purchased it). Bought a 2019 Silverado in 2020 before I retired. Have already replaced the starter, battery and had a leak on the rooftop trim. Chevys are NOT what they used to be. I’ll never buy another one. Hubby had a 00 Toyota Tacoma, runs great. He also has a 65 Chevy truck he’s been fixing up. It runs great. I’d buy an older car or truck if I were to ever buy another because we know how to work on those and seems they don’t have as many problems as the newer vehicles. It’s different since retirement that we now limit or exclude many purchases.
We paid cash for gently used cars that were just a year or two old. They are 18 and 19 years old now and still great cars. We rent a car for long road trip vacation once per year. When we need to replace, we will pay cash for another used car. We have never had a car payment in our entire marriage. The last time I had a car payment was when I first got out of college. I remember it was $365/month.
We just bought a Ford F150 super cab new off the lot was $56,000 we had an F 350 diesel had a lot of problems traded it in ended up paying $43,000 cash for the new truck.
We are just retiring and bought a new electric car for cash- it will be our last car and here in Australia we paid $66000.00 for this car relatively cheap compared to others and there also was a $6000 rebate from the gov incentive, we also get a cheap rate power to charge it at night. It’s a smallish car but a hat hatch able to carry our dogs. We have put a lot of planning into place to cover our retirement. We have a battery account for replacement batteries in the future but this car only needs servicing every 2 years as there is no motor, no cooling system etc to breakdown.
My last vehicle was a (new to me) used Toyota. It still runs well but I'm about to start saving for another car, just in case something goes wrong with this one. I will never buy another new car. This prices are ridiculous. My last new car was a Honda Prelude. My payments were about $300 a month.
Please stay with your current car and wait years and years before replacing your good car(s). Buying again would not be wise. A 2019 is a young car. For all the reasons you have said, please don't do it. Good luck to you and us all✨😊✨. Those invitation letters from car dealerships are not for your benefit😉.
@@rustykatt3870 You are right! It's just a marketing ploy. It may only be tempting to 1% of the people who receive the notice. But, that's 1% more business than they had before.
Shut the barn door, Sally! Since we've hit the 2000s, everyone is either rolling in the dough or totally brain dead when it comes to car payments. When I was 19 and starting out on my own, my Dad told me not to spend more than 25% of my income on rent or a car. The whole point is to have money left over for other needs and wants. Any time I feel drawn to go over 25%, I just put the idea away and sleep on it.
My house payment is $512. It was built in 1988. 3/3/2 brick house 1500 sq ft. Just bought a vehicle this week! It is a 2015 Toyota RAV4 Limited for $16,250. Payments are $375. I have a plan to pay it off with my side jobs. I think I can do that in about 18 months. I have a car but I badly needed something with some cargo area. I bought a new lawn mower in the Spring. No way to haul it. Needed some new pickets for my fence. Had to haul them in my car with them partially hanging out the window. The Toyota I bought is not new but it looks new. The interior and outside of the vehicle looks new. And since it is a Limited, it has blind spot monitoring, leather seats, lane assist, navigation and other bells and whistles. I love it so far for the few days I have had it. The dealership put brand new tires, brakes, oil change and filled it up with gas.
I remember when you had to buy your Ford Fusion Dawn! It was during the very worst of times to have to buy a vehicle. Availability was nil for both new and used- and prices were exorbitant due to that.
I drove used cars until 1999. I leased and then bought a my Saturn. It was totalled in an accident in 2009. I bought a 2010 Honda Civic . I bought it for cash and am still driving it.
Yes we paid house off in 20 years instead of 30. No hoping not to purchase a car unless have to. I want to see how economy kicks back! However, I have 4 little grandchildren to transport so not enough car space! Look forward to your videos always!
You can get pretty nice used minivans for under $15,000. I bought 2 nice reliable used ones when my kids were growing. We drove them each about 7 years.
Tariffs will cause prices to go way up. We bought everything or found alternatives to everything we could anticipate needing for the next 4 years. Coffee, water filters for the burkey, stuff to maintain appliances. Cell phones and computer stuff will be second hand from now on. Let someone else be on the hook for import taxes. If your not looking for a truck you may not have many domestic choices on cars
This is the new reality. I do think a good car is a necessity in today’s world. Even if you live on a bus line. When you’re sick the last thing you need is to be taking buses and trains to the doctor. How can you food shop and get the bags home on an electric bike? Cabs get expensive. Going to be 12 degrees to where I live this weekend. I am not in an area walkable to much. Much of the country is that way. What we do is buy an affordable for us vehicle. Last one we bought was a 2017 that we got a year later. Brand new. Took the money out of our investments. Yes, it hurt. But it’s now 6 year old. Still hasn’t hit 100,000 miles. It’s needed two repairs, and tires. It’s a Honda. We have kept previous Hondas for well over 200,000 miles. On average 13 years. Now that we are retired I think this one will give us 15 years at least. When hubby’s 2005 Ford Focus bites the dust, we will probably buy one more new car. That way If we are fortunate that should see us through to our mid late 80’s and beyond, as our driving will decrease. Of course this assumes we are still here and still able to drive. Otherwise it will go to our son, and he can let one of his kids have it, or take it for himself. Not going to deny ourselves the ability to get around while we still can. We have denied ourselves enough to get to this point. One day talk about the cost of funerals. We decided to keep the money in the bank for things we need while we are alive. I don’t want to shell out the price of a car to prepay those. Rather have my car. 😂
My used vehicle I just bought has an 8.80% interest rate. However, I plan to pay it off in 12-18 months so it doesn't matter. And that is with an 800+ credit score for that rate. I made sure there was no prepayment penalty for paying it off early. I was determined to not spend more than $20K. I came way under my budget. I work at home and don't put many miles on my cars.
Wow! The last time I had a car payment was maybe 10 years ago? Or more. It was $370, and I thought that was super high. In 2021, we bought a one-year-old Honda for $18,000 in cash. I love my little Honda! I expect it to last at least 12-15 years (so another 7+), and then that’s when we’ll get a new one. We don’t upgrade cars for the fun of it, and we don’t want a car payment if we can help it!
I purchased a 35 000 dollar truck in 2016; glad I did. Still like new and only 25 000 miles on it. I'm not going to ever have a car payment again unless I have to.
If you have worked for 30 years and made decent money, you should just have the funds to pay cash if you want. I’m not in the market now since both of my older cars have low miles and nothing out there is tempting me right now. I will get a new car at some point instead of used. I like to buy new and keep them (16 years and 11 years for current cars).
I had to get a new car in 2021, but luckily it was just before the prices went crazy and I got a great deal on a basic car. My payments were well under $400, so I paid extra to pay it off early. My goal now is to maintain it well and hopefully save up so next time I’ll pay cash.
My husband and I bought a ford fusion 2011 when it was new. It was our highest car payment we ever had but we drove and until recently. I gave it to a young man at church who need a car. We have 2 other cars. a used Camero and a Kia Sorento. That is the car that pulls our camper. So My ford was a awesome car but I know what your saying about car payments. My kia we still have a payment on it and it is 270 a month. That is not bad but when we got it it was higher because we go it around that time when cars were just overpriced and there was not a lot of selection as you said. Car now are just crazy price, like houses are crazy priced.
@patriciabritton5917 You're so generous to help the young man from your church. We donate our cars to charities. We did give a Honda to my nephew in 2008, and he's still driving it!
55 years old and I’ve never had a car payment or a new car I drive a14 year old vw polo I’ve had it for 7 years with no problems and I love it and it still looks new. It’s the newest car I have ever had and I laugh at those who put themselves in debt….why if you can’t pay for it you can’t afford it…simple 🎉
Hint: We never could get ahead of the money game until we gave up the 2nd car. Cars have all kinds of expenses! And once one person stays home, crazy work expenses go away, too.
I'm still driving my Toyota Corolla I purchased new in 2001! It's been a fantastic car, and I'm hoping it will hold out a while longer because we just had to put a new roof on our house.
My car is a 2005…..I’m going to run it until the wheels fall off 🤣 I live near an Amish community….a horse & buggy is looking better and better…..thanks for your insight….
I've always been upside down in car payments because I didn't have good financial guidance and low income. Now I have a nice car but by the time I pay it off it will be "old". My wish is to finish the payments this year and be able to maintain it for several more years. If I can save after that I at least will have a decent down payment. As a single women it's important to have a reliable car as well - nothing fancy but I can't afford the time and money on a run down automobile
@EmilyEmilyEmily01 It sounds as though you're making good choices for your situation. As Money Mom says, personal finance is personal. Each situation is different. Good luck with paying it off sooner.
The last new car I bought was a 2019 Ford Escape that (in retrospect) we got a GREAT deal on! We purchased over Memorial Day weekend and it was the last year of that particular design, so the incentives were generous. Plus, it was Pre-Covid so automobile pricing in general had not become completely insane! The funny thing is, I was a little irked with myself at the time because I felt like I could have negotiated a better deal……..😏 The last used car we bought was about a year ago - a 2013 Toyota Corolla with only 16,000 miles on it that we purchased as my son’s “college car”. We picked it up for around $13k, but had to put some money into it to bring all the maintenance up to date - we are hoping that car carry’s my son through college and into his early working years until he is financially secure enough to get his own vehicle…….👍
We bought our home in 1973 for $26,000. House payment was about $115 a month. We purchased the home as a fixer upper type in a very nice neighborhood. It is now worth about $800,000…crazy!!
We bought a brand new Tesla in 2018, for $67k. Paid it off in 2 years. We were involved in a serious crash last year, and we went right out and bought another brand new Tesla because we walked away UNINJURED. We put down $5k, financed $50k on the new one with payments of $970 for 6 years. We both have excellent credit but rates were crap regardless. We paid the new car off on her first birthday. We drive 50 miles each way to work. The new car is just 13 months old with 45k on it.
Knock on wood I hope I never have to ever buy another car. The last several cars I bought were used with low mileage and I paid cash. Cars are crazy expensive now and I'm happy with the car I own. There are so many people that buy a car and can't afford it and they have to sell it or it gets repoed. In my town, we have lot after lot of used cars. A brand new car loses 20% of its value the first year and 10% is lost the first day you drive off the lot. I just want a car that gets me from A to B and doesn't empty the pocket book.
I will never have a car payment again, either. Its almost laughable but I drive a 2001 Oldsmobile intrigue. They dont even make oldsmobiles anymore. Next year it will be eligible for antique (cheap) liscence plates. It was my late mother-in-laws car, with only 74,000 miles on it. Ive put a new transmission in it and have excellently maintained it. I MIGHT (still not positive) be able to afford a major repair on it in the future, if needed, but thats about it. When it decides to bite the dust, I am done. I do not have thousands and thousands to buy a new or even used car outright, nor do I have the margin in my senior retirement budget to afford hundreds of dollars for a car payment, and I certainly refuse to go back to work to be able to do so. I will just learn to get around othets ways, and fortunately we live in a time where many things can be delivered to your door. Fortunately, I am a homebody, like you, so being grounded at home most of the time will be fine. Enjoy your content Money Mom. You and seem to think alike on many subjects.
I plan to retire next year. If my car goes down, I think I will just use Uber or the transportation service offered by the city for doctor apptments. Our church has a van service on Sundays. Between the loan payments and insurance and maintenance its not worth it. Most cars sit in parking lots and driveways 90% of the time. Staying home saves you money anyway, lol.
We drive older cars (2005 toyota tundra, and a 2015 mazda 5) I love not having payments. We could buy a new car, but it's just not worth it to us. He'd have to keep working longer to pay for it. Right now all our extra money is going into long term savings and investment accounts. We're good about cars, but Amazon, Costco and fast food are our weak areas. I've been really working hard the last couple of months to drastically reduce spending in those areas, but i definitely have a few nights a month that I drop the ball with fast food. I'm getting better though.
@heatherj3030 It's a hard habit to break. If you can take time to brown a few lbs. of ground beef and freeze it in 1 lb. packages, you can have a meal on the table in less time than it takes to pick up fast food. You can do the same with chicken. Either boil, bake, or cook it in a crock pot and freeze it shredded in 1 or 2 cup packages. It makes a big difference to me. Hope this helps.
$621.00 a month, and for how long? Some institutions will go up to 84 months now! Ridiculous... but not as bad as some loans I saw go through as a loan officer! 🙃 It will be higher when they talk people into the extras, like warranty, tire and wheel, debt protection, etc... 😮
I had my last car for 20 years, bought it 2nd hand with 20,000ks on it. It cost $20,000 It was great, a Mitsubishi, never let me down. I sold it for $1,500 didn't owe me a cent. We have a rule in our house to never borrow for depreciating assets so none of my kids have ever had car loans. They've had to do the yards and save for them. They're glad I was so mean because they all know people who have big car loans and they're glad they didn't go down that road..pardon the pun.
It's amazing how much cars are now. We will probably need a new car sometime in the future. My husband's vehicle is a 2008 and mine is 2010. We purchased them new. His vehicle was offering 0% financing for 48 months. My vehicle was offering 1.75% financing for 18 months. Our investments were earning 7% at the time, so we took advantage of the low or no interest rate. I don't know what we'll decide to do when it's time for a new vehicle. We'll have the money to purchase what we want, but we'd take advantage of any special financing if it's offered. Love to all, Linda 💕
That's what we do too. I find car shopping stressful. We bought daughter a car for graduation. Her 2006 Toyota got rear ended and totaled 3 weeks before graduation. She wasn't hurt, which is most important...she tried to find the exact car, with zero luck. We got her a 2021 which should last her 15 years at least
@christines2787 I'm so glad she wasn't hurt! We'd bought our youngest a new Honda his senior year in high school. He was in an accident that did some damage but was repairable. I said that getting him a car was a big present to me so I didn't spend my life driving him to all his activities. We keep our vehicles until the wheels fall off, lol.
@3TXSisters - we tend to as well, and generally go for something 2 or 3 years old. For me, and my 4ft 10 daughter, a backup camera is a very useful and frequently used tool. Her wants were few. Bluetooth and electric windows were all she actually cared about.
My 5 year old car is worth $35k in the market. It’s not worth that at all. Just a RAV. Crazy. It will be driven until it is done. If it needs to be replaced, it will be with a really good old car without computers. Will rent if I need a long drive and comfort.
Janet Andrews hello from Virginia: Dawn I just saw on the news where Progressive Insurance pulled out of Texas and dropped there customers homeowners Insurance is that true ?
I usually borrow from my local credit union the interest rate lower than banks or car loans and with credit union as yr loan goes down so does the interest. At minute l drive a 2010 hyuandi which l love
Our car payments were around $400, I think. I'll never be able to afford another car. Minimal insurance, tags and inspection, gas, minimal maintenance (so far) is almost more than I can handle. Battery died again. Last time I think in the Spring it died and I figured out how to use one of the rechargers we had. Wanted to get grocery last week and battery was dead again. The old recharger wouldn't even charge and the barely used but old heavier duty charger jumper thing wouldn't charge above low after staying plugged in almost 3 days. Car just laughed when I tried to use it. So now I need to buy another recharger and got fight with autozone because the 3 yr (?) battery didn't make it 2 years. Must have a new battery but now I'm gun shy so I want to get a charger ready for the next time. I'm guessing $200-$300 for both, not sure. Possibly tires next year. That is if I don't throw my hands up and sell it because I'll still be wondering if ubering would be cheaper. Certainly not as convenient but cheaper. But then I had to order the grocery, around $18 for delivery and tip. That also adds up over time, more than what I would use in gas. So what I'm babbling about is when you are budgeting don't forget to factor in maintenance. Ugggggghhhhhh!:(
@randomhodgepodge8902 Car repairs are infuriating to me. I think AutoZone will give you a refund of some sort. It may be something else draining the battery. Always something. Years ago, my car wouldn't start after I'd been in a shop downtown. Our city is very safe; however, after dark the area I was in was a little sketchy. My husband was out of town and wouldn't be home for a couple of hours. Fortunately, my son brought me a new battery and installed it. I felt so bad for him as he was all dressed up for his company's Christmas party. I was so grateful my husband had called him.
$600 is a lot for a car payment, even if you know that people have bigger ones. I have not had a car payment in almost 30 years. I'd suggest you not finance a brand new car. I now only pay cash. You can get a pretty decent vehicle under $15,000.
Hell no. I bought s toyotra sienna van gor $5,500. Cash a 2,010. In virginia. 200,000. Miles. Great condition. These vans last forever if ya keep oil changed. Ill never make payments for new. I tried 2x for great used and people hit ME. I LOST MY INVESTMENT. NEVER AGAIN
Our car payment and a personal loan payment will be paid off in 2025, saving us almost 900.00 a month. We get those upgrades all the time, I trash them before the hubs even sees them. We have a payment on our 2019 Nissan Altima but we have kept it to under 60,000 miles as I have purchased some used vehicles. We have a paid of 2004 Chevy truck, a paid off (have to have a truck because of our mini-farm, to pull animal trailer, etc) A 2005 Dodge Grand Caravan purchased for 2400.00 a few years ago and have put 30,000 miles on it and I recently picked up a 2004 Kia Sedona mini-van for 3300.00. It only had 73,000 miles. Since it is 20 years old I had my mechanic replace the timing belt and water pump, even though it should be good for 100,000 miles. I'm hoping to never buy another vehicle.
Cars seldom go up in value (antiques do I guess) and some hold value better than others, but I do not see them as an investment. They are a status symbol. Don't buy a junk heap. But why buy something with features you don't use?
I haven't quite figured out how I'll buy a car. My car now is 19 years old . It's in decent shape and only has 92,000 miles on it. It's a Subaru, so it should have another 300,000 miles or so to go. But you never know for sure. I really don't know what I'll do when it comes time to trade. Here, decent used cars can rarely be found for $20K. It takes more like $27-34K. All I know right now is that God provides. How--we'll see when the time comes.
Where do you live that cars are so expensive? You can get nice used Subarus here for under $20,000. They are all over the place in my local area and in the nearest big metro area, which is Minneapolis. You can also pick up nice minivans any day for under $15K and many nice smaller SUVs for under $20K. Just start saving now and widen your geographical search net when the time comes.
I live in Australia and purchased a new Subaru Impreza in 2020 and am hoping it will last me until I retire. I will then pay cash for another car and hopefully it will be my last car.
If i have to payments its never more than 36 months. Those dealerships will stretch it out to 84 months - you'll be paying on it when its old and worn. They make a l😊ot on those loans!
Spent 25k of my 100k savings to buy a 2020 Chevy Bolt E-Car last yr. I became a Caregiver to charge my car free at work. Fair Warning: We still have not received our 5k rebate promised us, we got scammed. I used to make $2.75 more than min. wage but now it's about $5 more than min wage since becoming a Caregiver. I work one 48 hour shift per week with an average of 10 hrs off each night. Sleep & am online for 2-3 hrs. Shower. Use their WIFI w/my MacBook. So freeing passing by gas station w/ long lines. No oil changes. We are 57 & 64 yrs old. My life is much better driving this E-Car, so much more enjoyable, rides smooth. My total commute is 2 hrs a week
Thanks!Dawn💖and Happy holidays to you and your family.
I drive a 15 year old beater beater (I don’t want to put extra garbage on our planet and it is still moving. ) I love your advice! Also you crack me up😀.☮️💟🖖CC
Thank you so much for your kindness and generosity.
You are so kind and generous
We never had a car payment. My husband had a habit of always buying a few years old and paying cash. At one time, our two daughters( in high school and college) and I drove three Toyota Corollas. My husband had a van. There are only 2 of us now, so we bought a new Toyota Rav4 in 2022 and still have an older van.
I remember what a relief I felt when we paid off our house it was more than 10 years ago.
That is awesome!
Cars are crazy expensive. I'm thrilled I was able to buy a 2003 Toyota Camry, with 440K kilometers or 273K miles on it, for $850 Cdn or just under $600 US last year. It was well maintained by the previous owners, is rust-free, drives like a charm & has great air conditioning in the summer & heats quickly in our cold, Canadian winters. Other than replacing the alternator this past month, I've only had regular maintenance costs. I am truly blessed. 🚙
Rust-free - that’s lucky! I wonder if they got it undercoated every year before you bought it. We have two Toyota Prius(es) - one is just about at 300,000. Hope to have it as long as possible! The other one we bought when it had more km on it, so we’ll likely be replacing it in 2025. Toyota ❤
Hey mom. I just wanted to share my experience. I have been driving high mileage vehicles for 20 years and only had one lemon. High mileage are the best vehicles you can get for 2 reason. First is price because everybody is afraid of them. Second is that by the time a vehicle hits 200k most of the kinks have been worked out so long as they were maintained properly. Vehicles love to be driven so a high mileage car that was maintained well will give very little problems. I just bought a 2004 prius with 220k miles. Only cost me $3200 and I'm loving it! Runs amazing and get 45mpg!
I had an uncle who said never buy anything brand new because you never know when you will get a lemon!
That's a fantastic deal!
@@therationalistparty9742 my husband got almost 300,000 out of his last truck.
Janet Andrews hello from Virginia: Dawn that is so true I hate a car payment I currently have 104,000 thousand miles on my Kia Forte 2016 and my dealership wants me to upgrade but is only offering me $4000 Kelly blue book value and because I've never had any issues with my car I plan to ride it until the wheels come off , because with a new car payment I can use that money to put into investments to be more secure in retirement thanks for the updates .
Thank you
Our first house payment was $75 a month for a cute 2 bedroom but it was also in 1962. Wish I had that little house now!
I also bought and paid my house in 15 years. Then I bought my house again, to buy a small shopping center , and I paid it off. Real Estate is a good investment.
We used real estate to build our retirement funds. Agree with you for our time frame of living. Now, I’m just glad our son will be able to use some of it, too hard for young people to build up and buy the same way now. I just saw a 3 bedroom house up for sale for 4 owners to share like a timeshare! Crazy.
My husband is a builder by trade. Working for the man now but will retire next year. And the plan is buying old fixer uppers and he and my son and a friend will fix them up and sell. Or rent out. Real estate is always the best way to go for long term investment
@@cjhoward409 it’s a different story in Canada- we had terrible luck when we tried to have tenants, with references. Was cheaper to pay to keep it empty! Takes a 4 month notice and THEN eviction process can start. Not my thing.
@@Smooshes786 Wow! That's awful.
this is a timely episode considering the payment costs of a car these days.
I own an older pickup truck that runs and drives great but the paint had become less shiny and it needed a deep clean. Yellowing headlights etc.
I was looking at the cost of a newer truck, used but only two to three years old.
What I saw shocked me... 800$ a month payments before the cost of full coverage insurance.
I stopped looking and instead ordered a new set of crystal clear headlights in my truck for 100 bucks along with deep clean and wash supplies.
I also bought a new set of tires and had them installed for around 600 bucks ...
I am now spending what I would be spending on a new truck payment on my own truck and have had two offers from people to buy it from me.
The point is don't get caught up in the sales hype.
True
Driving old cars has been a major way of saving money for me. My current one is a 2000 Ford Taurus, with 87,000 miles. I got it for $1,900 when it had $57,000 miles, about six years ago. I will nurse this car along, as I don't drive it except every two weeks or so, and I see no reason to buy another one. But old cars are everywhere, through private sellers, and some have very low miles. If all you want is basic transportation, that is the way to go.
@@yellowbird5411 EXACTLY. BUY FROM ELDERLY FOLKS. THEY TAKE THE BEST CARE OF THEIR CARS
We take REALLY good care of our vehicles. We have 3. A 2012 truck, 2007 Toyota suv, and a 2017 Honda civic. All excellent vehicles. No payments
You’re doing great!
@@cjhoward409 That's wonderful!
We used to have two cars sold, one when hubby retired and put that money in a savings account and have a rav 4 2014 has 100,084 miles we check the oil and do regular maintenance and we have a garage so that helps in the winter time and we will try to put a coat of wax on it this coming spring. This car will have to last.
I have a 2005 Toyota RAV4 with almost 114,000 miles. Still runs well. It is 20 years old this month.
It’s a good thing you have a reliable car.
When I read the title, I thought "WOW - a house payment as low as a car payment"! Good job :)
House prices are so high now this would most likely only be true if you compare a house payment from yesteryear to an expensive car payment of today. I will pay cash for my next car when I replace my 2007 Honda Accord. It's still great :)
My little pickup is 35 years old. I paid $800 for it 15 years ago. I don't plan to ever have a car payment. If I can't pay for it I'm not buying it. 🛻 Sacramento, California USA 🇺🇸
That's a great plan!
@@rangerannie5636 That's just a little bit more than $53.00 a year! Can't beat that!!! 🙂👍
I agree. We are retired. We do have a car payment. 789 a month!!! Our home is paid off. I’m going to start doubling up on payments. We only owe 18000 on it. We really need a truck. I think we will always have a vehicle payment. I’ve got about 15,000 saved. But I don’t think we will use the savings. I’m glad you talked about this. I’m glad I’m not the only one with this dilemma
I wonder what other retirees do. We live out on property and haul our own water. A truck is necessary. Our truck now has 259,000 on it! We keep it up but it can go at any time
A 'new' to you car has to be budgeted for like everything else. As soon as you buy a car you have to start saving. I keep my cars for about 10 years, basically until they are no longer dependable for the job they are needed. I bought a new truck as I live in the tropics, in the mountains, live alone and am 74. It cost me $25000, so I save in a special account $250 per month. Apart from the cars here in the tropics I have never bought a new car.
Wow that's a lot to owe for a car! I've never had a payment. Always had a used car and paid cash.
We have bought certified pre-owned cars for many years and paid cash. We used to pay around $13K for a two- or three-year-old car, and that was possible for our savings to handle. Now, 6 years after our last car purchase, we would have to pay at least $20K for a comparable car. Our savings can still handle it, but it does make you think about whether you really need a newer car. We are both older and may not be driving much longer, so it might be worth keeping our current car. Another thing to think about is the increase in car insurance and property tax if one buys a newer car.
This makes sense
It's definitely something to think about.
Wow that's great house payments!! It tells you how much inflation has risen.
Yes it's crazy!
No, you don't understand how very expensive that was at the time due to high interest rates and the then current wages. It's a matter of perspective.
please NEVER buy a used car with a car payment, the interest is much higher, if you NEED to do a car payment buy a NEW car, and make sure you buy it between oct 31, and december
if you have the money please buy a good used car and pay it in FULL in cash
My credit union gives the same rate for 2016 - 2025 model years (considered new), and the rates are competitive. I just helped my brother get a 2023 Chrysler Pacifica that had 10K miles for 28K! Got the A+ rate for 48 months and put about 10K down for $500/mo payment. With a 7 year, 120K bumper to bumper warranty (added to the vehicle price, about $1800.00). If you're careful, you can still buy used and do okay! 🙂👍
I don’t know. Depends on the car and the interest rate. My last car payment on a used car was 3.2 %. The same new car cost $10,000 more and the new car interest rate was 2.7%. Not much difference. I think it also depends on your credit score. Also, we can always throw extra money every month on the principle. I paid off my last car 13 months earlier by paying extra principle and saving that monthly interest. But yes, new car loans are less interest BUT, too overpriced !!!
I always bought cars that were 1 to 3 years old and low mileage. I took out a low interest credit union loan and each car was a great deal to me. Never paid much in interest and repairs were minimal.
This summer I planned to do the same thing. The credit union rate was close to 9% I bought new with a 1.5 interest rate. New was actually cheaper and I shouldn’t have to make any major repairs for years. I was shocked that new was actually a better deal. I think it just depends on what rates look like and if new car prices aren’t much more than used.
I would never buy a really old car because I don’t have the skills to fix it myself.
@@Chris-tg3qy I feel the same about older cars.
If only people would save the equivalent amount each month.
True
I bought my very first car, 30 years ago, with cash that I had saved up and ever since I have put the equivalent of a monthly car payment away - the following two cars I also paid cash.
Never had a car payment in my life.
I hope people read your comment very closely.
@ thanks Teresa, we don't have any debts and save each month for our replacement car
I am in my late 60’s and my husband in his 70’s. We pay cash for cars. The last car we bought was $7200 with 120,000 miles. We have a sinking fund to replace car and when we need a different car, we use what money is in the sinking fund account. We generally get around 5 years for our cars. We live in NH so also need an all wheel or four wheel drive vehicle.
Wonderful
I hope to keep my current vehicle, a Corolla, for many years. When it’s time to buy a new-to-me vehicle, I definitely plan to pay cash. I’ve bought seven vehicles in my life, and I’ve paid cash for five. I’ve never bought new, always 2+ years old.
I gave up my Corolla because of back issues. I couldn’t lower myself into the car anymore. I’m 5’ 8’. Great car!
I’m only 5’3, so it’s a good fit! :-)
Yes a lot of people are talking about this on their videos, the prices of vehicles has skyrocketed to the point where they are unaffordable for most people, most people can only buy used! These payments are higher than some people's mortgages! Especially if you bought your house 10 or 15 years ago.
It is crazy how much car prices have gone up!
I’m with you. I hope I never have a car payment again. My husband has been driving his truck for 20 years while we 😊save for the next one. I HAVE discovered that a new car requires low to no maintenance except for, you know, oil changes and minor stuff like that.
@@GrannyLinn Good to know!
A strategy that I like is to buy a car coming off a lease. They typically have low mileage and are well maintained.
When we started making house payments my mother gave us good advice. Every month pay extra on the mortgage principle. So I did that and after four years it was as if we had made payments for 8 1/2 years.!!
@@peggylancour5628 I did the same!
That is great advice!
Hi Money Mom, I can't fathom a mortgage as low as $600.00 or $700.00. Granted, in the 90s that was a decent amount of money.
Inflation plus low supply in our HCOL suburb in Houston means $700.00 wouldn't even pay for a 1 bedroom apartment now. We were able to buy a 1,700 sqft 50 year old fixer upper in 2019 for $209,000 and that was Cheap then!!
😅 Our mortgage was only $700.00 more than our apartment rent was so it felt like a no brainer. We were hoping to stay here for 5 years, apply sweat equity & a few big repairs then sell & buy a newer home, but now it may be another 5 before that happens. For now we're grateful to have a home as a lot of Millenials do not.
Thanks for the video!
My first mortgage was in 1988. It was $750 with taxes and ins. Which was high for us at the time.
@@cjhoward409 I believe you that that was high back then. I'll have to look at a conversion chart from that year's dollars to 2024 dollars.
Yes, it's crazy how much things have changed!
Wow
@@cds8249 You're so smart! Hope it continues to be a good investment for you!
Wow that is a huge candle. At first I thought it was a big cake ha ha. That is cool.
It really is a big one!
I thought it was coconut cake 🤦🏻♀️
These car payments are outrageous
It really would involve how much driving you do. Around town for errands and stuff, buy something cheap even with added miles, point a to point b.
Of course, everyone has to worry about road trips. For the odd long distance trip it is cheaper to rent a car then to put wear and tear on your own car.
Buying something cheaper out right with rental options for long trips ... your money ahead! Who wants payments when you're older!
I never thought about renting for long trips. That's a great tip!
@@CentsibleLivingWithMoneyMom We always rent a car for long road trips. My husband is very careful not to add unnecessary wear and tear to our cars. Plus, we usually go to the beach. Between the sand and all the eating we do in the car, let's just say I'm glad I don't have to clean it!
That's a really good idea about renting, one day I will be able to travel more an hour away again and will keep that in mind!
@DS-mw8yu You bring up a very good point. I'm just more comfortable in my own car. We've had several long trips this year. We usually only have 2 trips a year. One is 7 hours away and the other 12 hours away. Fortunately, our vehicle has been very reliable.
I've already put a lot of money into my 20 y/o car, but will have engine overhaulsed if needed. Still cheaper than a new or new used car.
@oldegoatee8450 It's a hard decision for me. My car is a lemon, but I love it. It needs about $10,000 worth of work. I carry around oil and fluid for the radiator. I watch my gauges carefully. But I only drive it around town. I wouldn't feel comfortable taking a trip in it. I hope your vehicle lasts, too!
@@3TXSisters My secret weapon is prayer as well as gratefulness every time I successfully go out and come back home. 😍
It's all relative. It felt weird to buy my '99 Toyota Corolla for $14K when I knew my parents paid $20K for their house. The payments for my Corolla were $189 per month. After 25 wonderful years with my Corolla, someone hit it and it was totaled (only 150K miles - so much life left!). I didn't want a payment either, so I paid cash for a new Honda. Cars are very expensive now!
For sure
@@Ay-B You're right!
I’m still driving my 09 Honda. Has 247,000 miles on it but we’ve only replaced the starter and a wheel bearing during the years (it was used when we purchased it). Bought a 2019 Silverado in 2020 before I retired. Have already replaced the starter, battery and had a leak on the rooftop trim. Chevys are NOT what they used to be. I’ll never buy another one. Hubby had a 00 Toyota Tacoma, runs great. He also has a 65 Chevy truck he’s been fixing up. It runs great. I’d buy an older car or truck if I were to ever buy another because we know how to work on those and seems they don’t have as many problems as the newer vehicles. It’s different since retirement that we now limit or exclude many purchases.
Sounds like you have a good eye for a reliable vehicle!
We paid cash for gently used cars that were just a year or two old. They are 18 and 19 years old now and still great cars. We rent a car for long road trip vacation once per year. When we need to replace, we will pay cash for another used car. We have never had a car payment in our entire marriage. The last time I had a car payment was when I first got out of college. I remember it was $365/month.
That's so smart!
We just bought a Ford F150 super cab new off the lot was $56,000 we had an F 350 diesel had a lot of problems traded it in ended up paying $43,000 cash for the new truck.
We are just retiring and bought a new electric car for cash- it will be our last car and here in Australia we paid $66000.00 for this car relatively cheap compared to others and there also was a $6000 rebate from the gov incentive, we also get a cheap rate power to charge it at night. It’s a smallish car but a hat hatch able to carry our dogs. We have put a lot of planning into place to cover our retirement. We have a battery account for replacement batteries in the future but this car only needs servicing every 2 years as there is no motor, no cooling system etc to breakdown.
That sounds like a great plan!
If they're sending you an offer in the mail then I think business must be slipping for them! 😮
Good point
ouch 😢we buy used for cash -but our cars are getting old. We may have to buy one soon
My last vehicle was a (new to me) used Toyota. It still runs well but I'm about to start saving for another car, just in case something goes wrong with this one. I will never buy another new car. This prices are ridiculous. My last new car was a Honda Prelude. My payments were about $300 a month.
Please stay with your current car and wait years and years before replacing your good car(s). Buying again would not be wise. A 2019 is a young car. For all the reasons you have said, please don't do it. Good luck to you and us all✨😊✨. Those invitation letters from car dealerships are not for your benefit😉.
You are absolutely right!
@@CentsibleLivingWithMoneyMom 🤗😊✨.
I roll my eyes everytime we get one of those letters, then they go in the trashcan. 😊 They're not tempting me!
@cds8249 - Daughter went to one recently to get the free earbuds they promised. 😂 They actually did give her them
@@rustykatt3870 You are right! It's just a marketing ploy. It may only be tempting to 1% of the people who receive the notice. But, that's 1% more business than they had before.
As long as people put up with it the co's will keep it up. Plus the younger people are so in love with the techy stuff that isn't necessary.
People 100 years ago would say that about us too. Times and standards change.
Shut the barn door, Sally! Since we've hit the 2000s, everyone is either rolling in the dough or totally brain dead when it comes to car payments.
When I was 19 and starting out on my own, my Dad told me not to spend more than 25% of my income on rent or a car. The whole point is to have money left over for other needs and wants. Any time I feel drawn to go over 25%, I just put the idea away and sleep on it.
@kasandrabrown8611 That's sound advice!
My house payment is $512. It was built in 1988. 3/3/2 brick house 1500 sq ft.
Just bought a vehicle this week! It is a 2015 Toyota RAV4 Limited for $16,250. Payments are $375. I have a plan to pay it off with my side jobs. I think I can do that in about 18 months.
I have a car but I badly needed something with some cargo area. I bought a new lawn mower in the Spring. No way to haul it. Needed some new pickets for my fence. Had to haul them in my car with them partially hanging out the window.
The Toyota I bought is not new but it looks new. The interior and outside of the vehicle looks new. And since it is a Limited, it has blind spot monitoring, leather seats, lane assist, navigation and other bells and whistles. I love it so far for the few days I have had it. The dealership put brand new tires, brakes, oil change and filled it up with gas.
@@tcshy1903 It sounds very nice and should last a long time!
I remember when you had to buy your Ford Fusion Dawn! It was during the very worst of times to have to buy a vehicle. Availability was nil for both new and used- and prices were exorbitant due to that.
Yes, it was a rough time to buy a car.
I drove used cars until 1999. I leased and then bought a my Saturn. It was totalled in an accident in 2009. I bought a 2010 Honda Civic . I bought it for cash and am still driving it.
You’ve had a great run with those cars!
Yes we paid house off in 20 years instead of 30.
No hoping not to purchase a car unless have to. I want to see how economy kicks back! However, I have 4 little grandchildren to transport so not enough car space! Look forward to your videos always!
You can get pretty nice used minivans for under $15,000. I bought 2 nice reliable used ones when my kids were growing. We drove them each about 7 years.
Tariffs will cause prices to go way up. We bought everything or found alternatives to everything we could anticipate needing for the next 4 years. Coffee, water filters for the burkey, stuff to maintain appliances. Cell phones and computer stuff will be second hand from now on. Let someone else be on the hook for import taxes. If your not looking for a truck you may not have many domestic choices on cars
Thanks for sharing!
@@sgc1401 Thanks!
@@CentsibleLivingWithMoneyMom Thank you!
This is the new reality.
I do think a good car is a necessity in today’s world. Even if you live on a bus line. When you’re sick the last thing you need is to be taking buses and trains to the doctor. How can you food shop and get the bags home on an electric bike? Cabs get expensive. Going to be 12 degrees to where I live this weekend. I am not in an area walkable to much. Much of the country is that way.
What we do is buy an affordable for us vehicle. Last one we bought was a 2017 that we got a year later. Brand new. Took the money out of our investments. Yes, it hurt. But it’s now 6 year old. Still hasn’t hit 100,000 miles. It’s needed two repairs, and tires. It’s a Honda. We have kept previous Hondas for well over 200,000 miles. On average 13 years. Now that we are retired I think this one will give us 15 years at least.
When hubby’s 2005 Ford Focus bites the dust, we will probably buy one more new car. That way If we are fortunate that should see us through to our mid late 80’s and beyond, as our driving will decrease. Of course this assumes we are still here and still able to drive. Otherwise it will go to our son, and he can let one of his kids have it, or take it for himself. Not going to deny ourselves the ability to get around while we still can. We have denied ourselves enough to get to this point.
One day talk about the cost of funerals. We decided to keep the money in the bank for things we need while we are alive. I don’t want to shell out the price of a car to prepay those. Rather have my car. 😂
I hear you, it's tough!
My used vehicle I just bought has an 8.80% interest rate. However, I plan to pay it off in 12-18 months so it doesn't matter. And that is with an 800+ credit score for that rate. I made sure there was no prepayment penalty for paying it off early. I was determined to not spend more than $20K. I came way under my budget. I work at home and don't put many miles on my cars.
@@tcshy1903 That's great!
Wow! The last time I had a car payment was maybe 10 years ago? Or more. It was $370, and I thought that was super high. In 2021, we bought a one-year-old Honda for $18,000 in cash. I love my little Honda! I expect it to last at least 12-15 years (so another 7+), and then that’s when we’ll get a new one. We don’t upgrade cars for the fun of it, and we don’t want a car payment if we can help it!
@@aroundthemiddle2112 Me neither!
I purchased a 35 000 dollar truck in 2016; glad I did. Still like new and only 25 000 miles on it. I'm not going to ever have a car payment again unless I have to.
That's so smart!
If you have worked for 30 years and made decent money, you should just have the funds to pay cash if you want. I’m not in the market now since both of my older cars have low miles and nothing out there is tempting me right now. I will get a new car at some point instead of used. I like to buy new and keep them (16 years and 11 years for current cars).
@@silentnot4812 We do the same.
I had to get a new car in 2021, but luckily it was just before the prices went crazy and I got a great deal on a basic car. My payments were well under $400, so I paid extra to pay it off early. My goal now is to maintain it well and hopefully save up so next time I’ll pay cash.
It’s amazing that you were able to pay it off early!
@@dforrest4503 Good for you!
My husband and I bought a ford fusion 2011 when it was new. It was our highest car payment we ever had but we drove and until recently. I gave it to a young man at church who need a car. We have 2 other cars. a used Camero and a Kia Sorento. That is the car that pulls our camper. So My ford was a awesome car but I know what your saying about car payments. My kia we still have a payment on it and it is 270 a month. That is not bad but when we got it it was higher because we go it around that time when cars were just overpriced and there was not a lot of selection as you said. Car now are just crazy price, like houses are crazy priced.
I hear you on the car prices!
@patriciabritton5917 You're so generous to help the young man from your church. We donate our cars to charities. We did give a Honda to my nephew in 2008, and he's still driving it!
55 years old and I’ve never had a car payment or a new car I drive a14 year old vw polo I’ve had it for 7 years with no problems and I love it and it still looks new. It’s the newest car I have ever had and I laugh at those who put themselves in debt….why if you can’t pay for it you can’t afford it…simple 🎉
Good for you!
Hint: We never could get ahead of the money game until we gave up the 2nd car. Cars have all kinds of expenses! And once one person stays home, crazy work expenses go away, too.
@@coffeecupconversations So true!
Makes sense
I'm still driving my Toyota Corolla I purchased new in 2001! It's been a fantastic car, and I'm hoping it will hold out a while longer because we just had to put a new roof on our house.
It’s crazy how much roofs cost these days!
What use to be is of little relevance today as wages are much higher now
My adult son's truck cost more than our first and second homes!
It is crazy, isn't it?
@CentsibleLivingWithMoneyMom definitely!
If you don't need a huge car, you can still get a new VW Jetta for just over $20.000
My car is a 2005…..I’m going to run it until the wheels fall off 🤣 I live near an Amish community….a horse & buggy is looking better and better…..thanks for your insight….
@@carolyneastman6095 😄😄😄
That’s a great plan!
I've always been upside down in car payments because I didn't have good financial guidance and low income. Now I have a nice car but by the time I pay it off it will be "old". My wish is to finish the payments this year and be able to maintain it for several more years. If I can save after that I at least will have a decent down payment. As a single women it's important to have a reliable car as well - nothing fancy but I can't afford the time and money on a run down automobile
@EmilyEmilyEmily01 It sounds as though you're making good choices for your situation. As Money Mom says, personal finance is personal. Each situation is different. Good luck with paying it off sooner.
@ thanks! Yeah I have tried to refocus on the positives, did it take longer to pay off? Yes but I am paying and it's been a great car
It sounds like you're on the right track!
The last new car I bought was a 2019 Ford Escape that (in retrospect) we got a GREAT deal on! We purchased over Memorial Day weekend and it was the last year of that particular design, so the incentives were generous. Plus, it was Pre-Covid so automobile pricing in general had not become completely insane! The funny thing is, I was a little irked with myself at the time because I felt like I could have negotiated a better deal……..😏
The last used car we bought was about a year ago - a 2013 Toyota Corolla with only 16,000 miles on it that we purchased as my son’s “college car”. We picked it up for around $13k, but had to put some money into it to bring all the maintenance up to date - we are hoping that car carry’s my son through college and into his early working years until he is financially secure enough to get his own vehicle…….👍
That is a great deal for a new car!
I'm actively saving to pay cash for my next car.
Wonderful
@@nataliepyn1 Good for you!
My parents first house payment was 72.dollarss a month!! In 1966. Brand new house!
We bought our home in 1973 for $26,000. House payment was about $115 a month. We purchased the home as a fixer upper type in a very nice neighborhood. It is now worth about $800,000…crazy!!
It’s crazy how much things have changed.
That’s equivalent to about $700 a month today
We bought a brand new Tesla in 2018, for $67k. Paid it off in 2 years. We were involved in a serious crash last year, and we went right out and bought another brand new Tesla because we walked away UNINJURED.
We put down $5k, financed $50k on the new one with payments of $970 for 6 years. We both have excellent credit but rates were crap regardless. We paid the new car off on her first birthday. We drive 50 miles each way to work. The new car is just 13 months old with 45k on it.
Wow that’s amazing that you paid it off so quickly!
@@ElinorRumming You did a great job paying off your carnote so quickly!
Knock on wood I hope I never have to ever buy another car. The last several cars I bought were used with low mileage and I paid cash. Cars are crazy expensive now and I'm happy with the car I own. There are so many people that buy a car and can't afford it and they have to sell it or it gets repoed. In my town, we have lot after lot of used cars. A brand new car loses 20% of its value the first year and 10% is lost the first day you drive off the lot. I just want a car that gets me from A to B and doesn't empty the pocket book.
It’s so much cheaper to buy used.
Hi lovely lots of love from us here in Australia ❤❤❤❤
Love from Australia!
I will never have a car payment again, either. Its almost laughable but I drive a 2001 Oldsmobile intrigue. They dont even make oldsmobiles anymore. Next year it will be eligible for antique (cheap) liscence plates. It was my late mother-in-laws car, with only 74,000 miles on it. Ive put a new transmission in it and have excellently maintained it. I MIGHT (still not positive) be able to afford a major repair on it in the future, if needed, but thats about it. When it decides to bite the dust, I am done. I do not have thousands and thousands to buy a new or even used car outright, nor do I have the margin in my senior retirement budget to afford hundreds of dollars for a car payment, and I certainly refuse to go back to work to be able to do so. I will just learn to get around othets ways, and fortunately we live in a time where many things can be delivered to your door. Fortunately, I am a homebody, like you, so being grounded at home most of the time will be fine. Enjoy your content Money Mom. You and seem to think alike on many subjects.
I plan to retire next year. If my car goes down, I think I will just use Uber or the transportation service offered by the city for doctor apptments. Our church has a van service on Sundays. Between the loan payments and insurance and maintenance its not worth it. Most cars sit in parking lots and driveways 90% of the time. Staying home saves you money anyway, lol.
For sure
We drive older cars (2005 toyota tundra, and a 2015 mazda 5) I love not having payments. We could buy a new car, but it's just not worth it to us. He'd have to keep working longer to pay for it.
Right now all our extra money is going into long term savings and investment accounts. We're good about cars, but Amazon, Costco and fast food are our weak areas. I've been really working hard the last couple of months to drastically reduce spending in those areas, but i definitely have a few nights a month that I drop the ball with fast food. I'm getting better though.
@heatherj3030 It's a hard habit to break. If you can take time to brown a few lbs. of ground beef and freeze it in 1 lb. packages, you can have a meal on the table in less time than it takes to pick up fast food. You can do the same with chicken. Either boil, bake, or cook it in a crock pot and freeze it shredded in 1 or 2 cup packages. It makes a big difference to me. Hope this helps.
Sounds good
@@3TXSisters thanks!
$621.00 a month, and for how long? Some institutions will go up to 84 months now! Ridiculous... but not as bad as some loans I saw go through as a loan officer! 🙃 It will be higher when they talk people into the extras, like warranty, tire and wheel, debt protection, etc... 😮
3 years
3 years to own doesn't sound too bad! 👍...of course I'd rather keep my PIF vehicle. 😊
I pay cash for my cars. No interest.
Nope, I'd drive that car until it drops. They just want to keep you in debt
I had my last car for 20 years, bought it 2nd hand with 20,000ks on it. It cost $20,000 It was great, a Mitsubishi, never let me down. I sold it for $1,500 didn't owe me a cent. We have a rule in our house to never borrow for depreciating assets so none of my kids have ever had car loans. They've had to do the yards and save for them. They're glad I was so mean because they all know people who have big car loans and they're glad they didn't go down that road..pardon the pun.
It’s great that you instilled that in your kids!
First mistake was ford, too many repairs. Next was not buying a used car by owner. Using dealer service is a rip off, find a local mechanic.
It's amazing how much cars are now. We will probably need a new car sometime in the future. My husband's vehicle is a 2008 and mine is 2010. We purchased them new. His vehicle was offering 0% financing for 48 months. My vehicle was offering 1.75% financing for 18 months. Our investments were earning 7% at the time, so we took advantage of the low or no interest rate. I don't know what we'll decide to do when it's time for a new vehicle. We'll have the money to purchase what we want, but we'd take advantage of any special financing if it's offered. Love to all, Linda 💕
That's what we do too. I find car shopping stressful. We bought daughter a car for graduation. Her 2006 Toyota got rear ended and totaled 3 weeks before graduation. She wasn't hurt, which is most important...she tried to find the exact car, with zero luck. We got her a 2021 which should last her 15 years at least
@christines2787 I'm so glad she wasn't hurt! We'd bought our youngest a new Honda his senior year in high school. He was in an accident that did some damage but was repairable. I said that getting him a car was a big present to me so I didn't spend my life driving him to all his activities. We keep our vehicles until the wheels fall off, lol.
@3TXSisters - we tend to as well, and generally go for something 2 or 3 years old. For me, and my 4ft 10 daughter, a backup camera is a very useful and frequently used tool.
Her wants were few. Bluetooth and electric windows were all she actually cared about.
I agree
@@christines2787 Oh, she is petite. A backup camera is useful to me, too. She sounds so sweet.
Yes just purchased a 2025 crv mostly trade in and cash and less 3 year loan almost paid off
My 5 year old car is worth $35k in the market. It’s not worth that at all. Just a RAV. Crazy. It will be driven until it is done. If it needs to be replaced, it will be with a really good old car without computers. Will rent if I need a long drive and comfort.
I know, it's crazy!
Janet Andrews hello from Virginia: Dawn I just saw on the news where Progressive Insurance pulled out of Texas and dropped there customers homeowners Insurance is that true ?
I did not know
I usually borrow from my local credit union the interest rate lower than banks or car loans and with credit union as yr loan goes down so does the interest. At minute l drive a 2010 hyuandi which l love
I've heard you can get a great deal on an EV these days. I may buy one soon. Although I rarely drive over 100 miles a day.
Our car payments were around $400, I think. I'll never be able to afford another car. Minimal insurance, tags and inspection, gas, minimal maintenance (so far) is almost more than I can handle. Battery died again. Last time I think in the Spring it died and I figured out how to use one of the rechargers we had. Wanted to get grocery last week and battery was dead again. The old recharger wouldn't even charge and the barely used but old heavier duty charger jumper thing wouldn't charge above low after staying plugged in almost 3 days. Car just laughed when I tried to use it. So now I need to buy another recharger and got fight with autozone because the 3 yr (?) battery didn't make it 2 years. Must have a new battery but now I'm gun shy so I want to get a charger ready for the next time. I'm guessing $200-$300 for both, not sure. Possibly tires next year. That is if I don't throw my hands up and sell it because I'll still be wondering if ubering would be cheaper. Certainly not as convenient but cheaper. But then I had to order the grocery, around $18 for delivery and tip. That also adds up over time, more than what I would use in gas. So what I'm babbling about is when you are budgeting don't forget to factor in maintenance. Ugggggghhhhhh!:(
@randomhodgepodge8902 Car repairs are infuriating to me. I think AutoZone will give you a refund of some sort. It may be something else draining the battery. Always something. Years ago, my car wouldn't start after I'd been in a shop downtown. Our city is very safe; however, after dark the area I was in was a little sketchy. My husband was out of town and wouldn't be home for a couple of hours. Fortunately, my son brought me a new battery and installed it. I felt so bad for him as he was all dressed up for his company's Christmas party. I was so grateful my husband had called him.
It’s so frustrating when your car breaks down!
$600 is a lot for a car payment, even if you know that people have bigger ones. I have not had a car payment in almost 30 years. I'd suggest you not finance a brand new car. I now only pay cash. You can get a pretty decent vehicle under $15,000.
Hell no. I bought s toyotra sienna van gor $5,500. Cash a 2,010. In virginia. 200,000. Miles. Great condition. These vans last forever if ya keep oil changed. Ill never make payments for new. I tried 2x for great used and people hit ME. I LOST MY INVESTMENT. NEVER AGAIN
You're very lucky to have found a good deal!
Our car payment and a personal loan payment will be paid off in 2025, saving us almost 900.00 a month. We get those upgrades all the time, I trash them before the hubs even sees them. We have a payment on our 2019 Nissan Altima but we have kept it to under 60,000 miles as I have purchased some used vehicles. We have a paid of 2004 Chevy truck, a paid off (have to have a truck because of our mini-farm, to pull animal trailer, etc) A 2005 Dodge Grand Caravan purchased for 2400.00 a few years ago and have put 30,000 miles on it and I recently picked up a 2004 Kia Sedona mini-van for 3300.00. It only had 73,000 miles. Since it is 20 years old I had my mechanic replace the timing belt and water pump, even though it should be good for 100,000 miles. I'm hoping to never buy another vehicle.
You sound like you're really on top of your finances!
$633 a month in 1998 would be equivalent to about $1200 today though
Very interesting
Cars seldom go up in value (antiques do I guess) and some hold value better than others, but I do not see them as an investment. They are a status symbol.
Don't buy a junk heap. But why buy something with features you don't use?
Not that that isn’t bad, but our mortgage was over $1500 per month back in 2016. So at least it wasn’t that bad. lol
For sure
I haven't quite figured out how I'll buy a car. My car now is 19 years old . It's in decent shape and only has 92,000 miles on it. It's a Subaru, so it should have another 300,000 miles or so to go. But you never know for sure. I really don't know what I'll do when it comes time to trade. Here, decent used cars can rarely be found for $20K. It takes more like $27-34K. All I know right now is that God provides. How--we'll see when the time comes.
It sounds like you have a very reliable car!
It sounds like you have a very reliable car!
Where do you live that cars are so expensive? You can get nice used Subarus here for under $20,000. They are all over the place in my local area and in the nearest big metro area, which is Minneapolis. You can also pick up nice minivans any day for under $15K and many nice smaller SUVs for under $20K. Just start saving now and widen your geographical search net when the time comes.
I live in Australia and purchased a new Subaru Impreza in 2020 and am hoping it will last me until I retire. I will then pay cash for another car and hopefully it will be my last car.
@Lisajen-h5u That's great!
I hope it does!
If i have to payments its never more than 36 months. Those dealerships will stretch it out to 84 months - you'll be paying on it when its old and worn. They make a l😊ot on those loans!
@@rkatufus True!
Car payments are a scam better off saving cash
And car add car insurance with that!
Oh yeah
Time to use uber's or cabs, busses. Would save tons of money!
Would NEVER BUY a new car again. MIGHT consider a good used vehicle, NOT electric!
If you really want to keep your car a long time, it would pay to keep it in the garage.
That's a great tip!
Mine was 520$ a month I paid my little house off years ago. Stay away from car payments
U can take a lot of uber's for 33000
True
We bought a used car we payed cash
Like my other cars, I plan on driving my current car for the next 10 years!
Great
You paid too much, and I thought your husband pushed for a more expensive car! Once you retire, you should avoid new purchases.
Spent 25k of my 100k savings to buy a 2020 Chevy Bolt E-Car last yr. I became a Caregiver to charge my car free at work. Fair Warning: We still have not received our 5k rebate promised us, we got scammed. I used to make $2.75 more than min. wage but now it's about $5 more than min wage since becoming a Caregiver. I work one 48 hour shift per week with an average of 10 hrs off each night. Sleep & am online for 2-3 hrs. Shower. Use their WIFI w/my MacBook. So freeing passing by gas station w/ long lines. No oil changes. We are 57 & 64 yrs old. My life is much better driving this E-Car, so much more enjoyable, rides smooth. My total commute is 2 hrs a week
I hope you get the rebate soon
@@CentsibleLivingWithMoneyMom Me too, we're still trying
😂😅😂😅
You can always have a new car with lower payments by leasing. Anyone with a home business can usually write off most of the cost
Interesting Idea