Ok frugal mamas... car advice needed please...

[BlueRoseMama]

My dads 1981 Subaru broke down. The brakes started to seize on me yesterday (my birthday of all things) and so I spent the day dealing with the car. We got a rental (because we only have one car that is not our own... lol...) and it is a 2005 Jeep Liberty. I am in car HEAVEN! This car has everything I have wanted forever... ugh... so just driving right now is some kind of torture. Then I get the call from Les Scwab today... my brakes, roters, and tires will cost me $750. That is literally more than the car is worth. I could drive it away for a whopping $500, but really no less if I want it to be safe.

Do I sink $500 (at least) into a car that is worth (trade in) $170 tops? Or do I have them put the thing back together... hope the brakes don't give out and drive it to the nearest dealership to pick up something new?

We have right now, $3500 in the bank. We were saving that to move... but I was thinking about it, and for deposit and last months rent would be about $1500.... then we could take first months rent out of our regular budget just like we would if we were living here still and still have $2000 left over to put down on a car with out having moving be super scary. That would give us enough credit room for a $8000 car and still be able to eat. (Because the payment on $6000 or less is under $200 a month and the insurence wouldn't be terrible because we could easily take Don's car off...

So what do you think? Stupid or well planned out. We could nurse this car until the other half of the inheritance is here (which is what we planned to do all along until this happened) but I don't know if 7 months (which is a guess, it could be shorter... but I don't hope to know dates anymore) is worth $500, nor do I know if it will NOT need more work before that. (And I DO know it will need new tires before long... the back ones are terrible)

I am obviously leaning towards getting a new car... but at the same time am a little worried... should we push it that close? I mean that leaves a surpluse each month of $120 total... gas, food everything needs to come out of that. Now there is a little soemthing else though. I just odered my serger, and I just put in for an order through the fabric coop of 25 yards of fabric... so I will have some room to make a sell summer clothes and make some money that way... I don't know... totally babbling here.

EDIT** They have a sale going on (the preverbial 'they') up in Seattle, and included in that sale is a beautiful silver grey 2002 Ford Escape for $8,888... I just called, they still have it, and they are going to see if we are approved for a loan of $6000 (through Don... not me... my credit is BAD) and if they can Don wants to go pick it up tomorrow. So I think I am leaning that way... but I would still like opinions...

Love Val

[boodamama]

Anyway to get a decent used car with the money? My last car was a used 1996 geo metro four door (small but I got amazing milage on this) it had higher milage so we only paid about $1100 for it. It lasted me over four years and put less than $300 a year into it. Not the most styling car but totally worth it for the value-We just got rid of it because mil was selling her car and it works a bit better for our family(bigger and dh doesn't drive a shift so that was always an issue)-the metro was still running fine.

[infinite]

Originally posted by BlueRoseMama
I mean that leaves a surpluse each month of $120 total... gas, food everything needs to come out of that.

I wouldn't, based on that statment alone.

[BlueRoseMama]

The only reason I am considering it ( what am I saying... I want to consider it... don't get me wrong... I LIKE nice things) is because it is a status symbol for my dh. He has worked SO hard for the last two years (and so have I) to get where we are, and he is ready to 'be there'. There is some part of me that believes he diserves it, and that may be the push he needs to have the confidence to get the job we need as a family. KWIM?

We have never lived with in our means. Not to make this sound negative, but we have always found a way to live above what we "should" live for our income. Excuse me... I have always found a way. We make less than $17'000 a year and we live in a VERY nice house (we rent share the basement to suppliment our rent to less than most of our friends in houses that are not as nice), we have Ray Ban and Okley sunglasses (bought for a 80% mark down on E bay)... We are well dressed (I sew and shop Goodwill sales)... we have $100 Christmas's (that look like we spent $1000 easily I make everything... even the wrapping paper, and I trade for EVERYTHING I can).... we even eat mostly organic (on a budget of $125 per month for food)... you know? I don't know how to discribe that... not saying that your wrong. Not at all.... I have been on the side of caution since this whole thing happened. (Although I am LOVING this rental car, and am enjoying being talked into spending money on a car I have wanted for a year. Not saying I am not...) I just am able to pull things together.... Don says his job is to make the money... and mine is to throw it around and make it look as good as possible. And I do... I have a thousand tricks up my sleeve and I have lived a VERY comfortable life because I have learned how to live well, on nothing.

Basically, I am saying you are right... we most likely can't afford it unless I make a deal with myself to make $100 a month sewing or babysitting or whatever... But I know me... I can pull a $100 from the sky if I have to... I have hundreds of times.

Thruth be told however... that to error on the side of caution would be wise in this case considering we are in the positives for the first time in three years... I have gotten myself in to deep holes about once a year because I made the mistake of allowing Don to make decissions when he does not deal with the finanaces. And living that close to your means can put you in a super dangerous spot... but the money is coming in the next 6 months to PAY THIS NEW CAR OFF... even if we did get the exact one we want...

Crap... and around we go again.

Thanks for being an ear. I don't feel as though I am making any sense.

Love Val

[LatteLover]

I think buying the newer car is a mistake. And, I actually don't know if you can afford it. Did you call your insurance agent to see how much your insurance premiums will go up? Plus, you will have to carry both collision and comprehensive on a car with a loan. CHECK that out. Also, gas on that type of car is not going to be cheap.

I would probably get an older car you can pay cash for that is in better mechanical condition.

Emily

[tmrhopkins]

I won't do it either- buy the new car- there wouild be no room to spare financially for those little "what if's" that always come up. Maybe you could find an older used car for the amount you have in savings.....

But sounds like you definatley need something better than what you have waiting in the shop to be fixed.

Good luck! Some tough choices ahead, and it doesn't help to make them as you are driving around nice new fancy car......

Tawnya

[~Denise~]

Yikes. No. I would not. Especially not knowing where you will move, how much that will cost, etc. What if your deposit is more? Or your rent? And insurance too...new cars require full coverage, and your old car will still need basic coverage by law.

New cars are nice, but not worth it if you can't easily afford the payments.

Try a credit union or your bank for a loan on a used car maybe? Or keep your current older one, and just set aside a bit per month for maintenance on it.

And like Emily said, an Escape uses more gas over a smaller car you could afford easier...plus is considered an SUV, so insurance is higher.

[~Denise~]

Oh, and why not get new tires only, and have Don replace the brakes? Easy to do, and your rotors can be re-surfaced for a lot cheaper at an auto store. Or call around, places like Brake Team do front and rear for $99....Les Schwab is one of the most expensive for brakes out of anyone I know, including my dealer! They were the same for our van as my dealer charged. (Hence how and why dh quickly learned how to do ours...lol...now we have a local Brake Team though.... )

[mamatosage]

Eeek----I would do it!

[Briannasmama]

I know the feeling all to well. And have given into things like that before. But gosh $120 a month for food, gas, perscriptions, clothing (or fabric) everything? There is no way I could do that. You are awesome!

But on the other hand dh & I were in this spot years ago and decided to sink about $650 into the broke down car to still not have a payment and the engine blew 2 months later. So had to get a car payment anyways. lol

I know I didn't help at all. lol Sorry. I can say I would be 50/50 on it if you are sure you can live on $120 a month. And you knew for sure $ was coming to pay it off in 6 months. (Or get a PT job for the 6 months.)

: )

[mamabear]

Happy birthday, Val!

It's tough. We were in a similar predicament with the Windstar...driving it 60 miles a day, putting thousands into it in maintenance every few months, wondering how soon that heavy combat city driving was going to take out the known-to-be-a-lemon tranny...not being able to afford to have the car off the road to be fixed so often.

I committed to working to make our car payment. We didn't get new; we got the Outlander at the rental car resale place (Hertz Car Sales) for several thousand less than blue book price. It is a 2003 and had 17,351 miles when we got it. (It now has over 23,000...look at that, I have driven 6,000 miles since the END OF NOVEMBER...mostly local...isn't that scary?)

It's been tight this month. I have had to say things like "we don't have money for that" and I've had to scrape together change to go food shopping. Mainly because there is a lag time between starting to work and actually seeing that money.

It seems like we are similar financial beings, Val. LOL. This

Don says his job is to make the money... and mine is to throw it around and make it look as good as possible. And I do... I have a thousand tricks up my sleeve and I have lived a VERY comfortable life because I have learned how to live well, on nothing.

I could have written it. So many times I have told Matt that he has to realize how I manage to make ends meet month after month and rarely do we feel "deprived."

But, if I'm reading you correctly, I also have the problem of going into a hole every so often when I *think* I can afford something that I really can't. And on a slim budget, it's really tough to put yourself in that position; it can be devastating.

Sigh. I don't really have an answer. I know things have been impossibly tight this month for us, and it's been stressful, but not as stressful as constantly worrying about our transportation. For me it's easier to budget solid monthly payments (and we got an extended warranty in our loan for $1200 that covers the car up to 87,000 miles) than to figure out how to come up with $500, or $1500, for a car repair all at once. And now I'm working and seeing that money go directly to the car, and it's kinda cool. I don't regret it.

The Outlander is a car to consider...we paid $13,500 for that car. They only started making them in 2003 though. But it has 4WD and a lot of other cool features that are SUV like, yet it's built on a car not a truck platform and gets 22/27 mpg. It has a really nice roomy backseat for the kids.

We also don't have perfect credit but only put down $1k and got 5.5%. I posted about how we got quotes from Matt's teacher credit union and played them off each other. Had we not done that, we would have been paying almost 9%. It's well worth it to play hardball with them. I don't think credit matters too much, just playing hardball and not letting them screw you because your credit score is under 700.

[qtkitty]

Do you have a close family member or friend who is VERY mechanicly inclined?

Perhaps you could look though your local newspaper in the classifieds and look for a new car that would meet your needs and cost. Then take the Mechanically inclined individual with you for the test drive and to look at it. If you don't have a friend or relative then take it by a mechanics ( make sure you know what they will charge just to take a look and listen to it run.. and make sure its someone you trust ) If they don't want to let you get it checked out then they are hiding something from you. Look under the hood has it been cleaned thats a sure sign that something happend and they are trying to cover it up.

You can normally find a car cheaper with out going through a car dealership ( although never just automatically trust anyone dealership or an independant selleralways get it looked at and checked)

Kevin, my fiance, had a Crysler New Yorker 85 or 87 model, in over all good condition and shape... he had it for 3 years and sold it for $1200 and it was still running and in good shape. My car was a low milage with 9 years still under warrentee(sp) 2001 Haundi Elantra and i got it from a SMALL dealership in 2002 for $7000. We even got new tires when we mentioned that the ones that were on there were not very good( So mention that if the tires dont look so hot on a dealers car, never hurts and to make a deal some dealerships will do it with out any hesitation).

My advice look around and find what you need, get it looked at by a mechanic and check the prices, then the vehicle should last you a while.

[BlueRoseMama]

Ok here is what we did... we took the $2000 up to the dealership and we haggled with them about the price. I knew the car that we could afford (best for our money kind of thing) would be gone if we did not do it right then... so I picked up Don in full uniform and we just went up there. The car we got was the bait and switch. Usually they sell that early and then keep the add up for a couple days to lure people into the lot... we just happened to be the first ones to see it. It is MUCH easier if you have money in hand to haggle. They WANT your money... the guy was STUPID though... I mean really this is how one of our conversations went:

Guy: "So here is all the paperwork, fill it out and sign there and you got yourself a car!"

Me: "This isn't the price we discussed, I need to know what they are going to charge me to replace the windsheild, and can you find out the intrest rate?"

Guy: "What?"

Don: "Intrest rate... what is our intrest rate?"

Guy: "Intrest rate? I don't think their is an intrest rate."

Don: "Ummmm... could you check that out for us... this is not a new car, we HAVE an intrest rate and I am not signing anything until I know what it is."

Guy: "Ok, I don't get asked that very often."

Me: "Sure you don't. Thanks for checking that for us."



But then he comes back with the price corrected, the intrest rate AND the price quote for the windsheild (which had a long crack going up to the eye line, which is illegal... so if they did not give me a good deal I could have always told them that. I did have a man in uniform with me. ).

In the end we finanaced just over $6000 and got a $170/mo payment for this:



That happens to add (WITH insurence) exactly $42 to our budget because with the rest of the Tax return money we paid off ALL of our credit cards except the one that is attached to our bank account.

So guys we got a new car... we pushed numbers around and it is really not going to hurt us at all. I had to hold off on getting my coverstitch machine which I have been wanting... but I took my sewing machine and serger into the shop and got them cleaned and oiled ($50) and so they will last me a while. I am commited to nulifing the $42 that we have extra each month with money I make and that gives me a little motivation as well. So basically we got a new car, and it did not effect us at all.

I am really happy with it... and I thank you for all the advice. It has been a REALLY long three days... but I think I was able to push enough numbers around that we will not be ill effected AND we will have a reliable car. That has to be worth something.

Love Val

[qtkitty]

WAY TO GO VAL!!!!

Another thing that you might want to ask them is if they take payments on the principal ... i know that some banks and morgage companies do. If you pay a little extra to the principal per month ( write that thats what its for on the check because if they mess up then you can call them on it ).. that will lower the over all interest you pay .. and could actually lower the payments per month depending on how they have the loan set up.

[BlueRoseMama]

What we are planning is putting a huge chunk on it when we get the rest of the inheritance money. That should be in April... but it could be as late as June... but if we put $4000 on it (like we planned before the car broke down) then we will refinanace and have a 2 year $60 a month payment or something through our bank (with no intrest for a year) and then double the payments and get it outta here... if we can (depends on if Don has a PD job by then) we will pay the whole thing off with that chunk of money and then be right back here where we started. (But with a better job) I AM excited. I drive it and it feels good. I didn't have a second thought about it in the last two days. I really do feel like it was the best choice... not just for our finanaces (which worked out beautifully I have to admit) but for Don's self esteem issues as well. He has worked SO hard, and us having a good car was sort of a status symbol of that for him... now he has that, he feels more confident.

Also he got invited to the last step in the testing process in the policing district we have REALLY been wanting (the one he volenteers for) all in the same day (Fri). We were driving around town (this car gets 25 miles to the gallon... did you know that??) and Don said "I am so excited... I feel like I could own this oral board." (That is the last phase of the test for those of you who do not know cop stuff.) I was so thrilled to hear him speak from such a place of power that I knew it was the right choice for us.

Love Val