Hang on to that car
Individuals by nature have a love of the open road. They thirst to hit the highway and travel to the destination of their choice. One way they have hit quenched that thirst over the last several decades is by purchasing a new vehicle every couple of years to get to that exotic destination.
It is great to have a new vehicle. The new car smell is addictive and all new cars ride great. There is definitely something exhilarating when you get in that new car and feel the smoothness and acceleration as you travel to your next destination, albeit work or otherwise.
However, after a couple of months or maybe a little longer if you are lucky, that new car smell wears off and you no longer remember much of the difference in your old car and your new car. By this time someone else at work probably has a newer car than you and you are no longer the focal point of envious conversations at the coffee pot. Maybe you then question, “Did I really need that new car after all?”
Truth is that you probably did not need that new car, but sometimes we do not always do a good job distinguishing between needs and wants. The average middle class family spends about $12000 per year on automobiles. That is $1000 per month on average.
Over the last 25 years the automobile industry has made many strides in improving quality, comfort, and safety in cars and trucks. There used to be a thought pattern that by the time your car or truck has over 60,000 miles it is time to trade it in or sell it because it has become a high mileage vehicle. However, with the cars of the last decade, that statement holds little weight to this writer.
If you properly maintain a car, mainly with oil changes, proper driving, and general routine maintenance, there is no reason why a car should not be able to be driven 150,000 miles or more with little or no issues. Currently, my 2 cars are a 2004 Honda Accord with 70,000 miles and a 2003 BMW 325 with 75,000 miles. I do not plan to change out either of these cars in the foreseeable future. Both drive fine and serve me well even though they are over 6 and 7 years old respectively.
Having no car payment is nice, but most importantly I think it is very impractical to have 2 car payments. If you are in the group of American families who have 2 car payments, you can easily put more cash in your pocket by downgrading one of those newer cars for a late model car that will probably serve your need equally well.
In the last couple of years some families have made the choice to reduce or eliminate their car payment by necessity rather than want. It is much easier to sell or trade a car to get out from a payment than a house. However, if you are luckily enough to have maintained a relatively good financial position (mainly keeping your normal job) over the last several years and you are still spending money on car payments - it might be time to reconsider that choice. There is nothing wrong with keeping more disposable income in your pocket and you will probably find that the satisfaction of feeling wealthier is more attractive than that new car smell.
Individuals by nature have a love of the open road. They thirst to hit the highway and travel to the destination of their choice. One way they have hit quenched that thirst over the last several decades is by purchasing a new vehicle every couple of years to get to that exotic destination.
It is great to have a new vehicle. The new car smell is addictive and all new cars ride great. There is definitely something exhilarating when you get in that new car and feel the smoothness and acceleration as you travel to your next destination, albeit work or otherwise.
However, after a couple of months or maybe a little longer if you are lucky, that new car smell wears off and you no longer remember much of the difference in your old car and your new car. By this time someone else at work probably has a newer car than you and you are no longer the focal point of envious conversations at the coffee pot. Maybe you then question, “Did I really need that new car after all?”
Truth is that you probably did not need that new car, but sometimes we do not always do a good job distinguishing between needs and wants. The average middle class family spends about $12000 per year on automobiles. That is $1000 per month on average.
Over the last 25 years the automobile industry has made many strides in improving quality, comfort, and safety in cars and trucks. There used to be a thought pattern that by the time your car or truck has over 60,000 miles it is time to trade it in or sell it because it has become a high mileage vehicle. However, with the cars of the last decade, that statement holds little weight to this writer.
If you properly maintain a car, mainly with oil changes, proper driving, and general routine maintenance, there is no reason why a car should not be able to be driven 150,000 miles or more with little or no issues. Currently, my 2 cars are a 2004 Honda Accord with 70,000 miles and a 2003 BMW 325 with 75,000 miles. I do not plan to change out either of these cars in the foreseeable future. Both drive fine and serve me well even though they are over 6 and 7 years old respectively.
Having no car payment is nice, but most importantly I think it is very impractical to have 2 car payments. If you are in the group of American families who have 2 car payments, you can easily put more cash in your pocket by downgrading one of those newer cars for a late model car that will probably serve your need equally well.
In the last couple of years some families have made the choice to reduce or eliminate their car payment by necessity rather than want. It is much easier to sell or trade a car to get out from a payment than a house. However, if you are luckily enough to have maintained a relatively good financial position (mainly keeping your normal job) over the last several years and you are still spending money on car payments - it might be time to reconsider that choice. There is nothing wrong with keeping more disposable income in your pocket and you will probably find that the satisfaction of feeling wealthier is more attractive than that new car smell.