Originally Posted By: chiefsfan1
Originally Posted By: KrisZ
Do the sensible thing and roll in that 5k into a brand new vehicle.
That's the American Way!!!
we came into a inheritance. Paying off the Camry is first.
We needed a car at the time. I do realize it was not ideal.
We have enough to buy a new car, but wont.
Need some help here. How does one determine how much one can afford?
Im looking at a beater, say a Mazda B3000 for $5K with 140K on the clock.
I admire your frugality. Living beneath your means is living well. A new car is NOT an investment, it's an expense that most folks can live without. If I were trying to talk you into buying into an "investment," and I told you that it would cost you 20-40K to get in, followed by $2500 a year for insurance, legal fees (taxes) and necessary maintenance, and in 7 years your "investment" is worthless no matter how well you care for it, does this sound like a "good" investment?
I, too, can afford a new vehicle, but I won't waste my money. Drive it off the showroom floor and around the block, trade it in, and you've just lost $5K. I heard once a financial counselor giving advice on the radio. Several people asked about cars. He said a good rule of thumb is don't spend more than 6 months net income on a vehicle, and he told (using different words) a similar story to what I've mentioned above.
I have enough cash (checking balance) to go into a dealer and write them a good check for a new vehicle. I choose not to. My 14 year old car is very well maintained and I LIKE IT. I also have an aversion to those payment books.
Good Luck!!