J’s truck is getting pretty old, and while it’s still reliable and getting him to and from work, it won’t be that way forever. He bought it 5 years ago and has since driven it over 120 km every single day for, to, and from work.
We’ve been planning out our finances recently for the next few years and one big purchase that is more than likely coming up is a new vehicle for J.
We try to use my car as much as possible so we can ensure his truck doesn’t get overused. Plus our car is much cheaper on gas, which is nice considering the truck only gets about 15 MPG. We both need a vehicle as a condition of employment at both of our jobs, so it’s not an option (as much as I’d like it to be) for become a one car family, and a large purchase like a new vehicle takes some consideration.
Differing Opinions
What J wants out of a vehicle and what I want are vastly different things. I personally think I’m a bit more practical than he is, but I am sure he thinks the same thing about himself.
I think a small, practical car that is good on gas and super reliable would be the best way for us to go. I’d prefer a four door.
We wear our vehicles into the ground, and therefore it is quite likely that we’ll have children while we still have the next set of wheels. Our next car needs to be practical for that.
In contrast, J wants a truck. He thinks that as home owners, there is often the need for a truck and that it’s more practical to have a truck and a car. Since I already have a car, that would indicate that the truck would be the next purchase.
I am not on board with a truck for two reasons:
– The cost (upfront, gas)
– It’s a nearsighted thought
We already have a small car which isn’t really the best vehicle for children. If we want to keep the vehicle for 10 years, and in five years we have kids, what are we going to do with car seats and carpools in a truck?
We’d have to sell it before we’re ready to.
The Financials
I took out a loan for my car back in 2012. It was a decision I never came to regret, because I needed a car. I worked, lived, and went to school in 4 different cities and didn’t’ have the cash for one sitting in my bank account. I paid it off very early and didn’t incur much in interest costs.
There are loan options available for our next purchase, like the ones that Money Barn Finance offer. We won’t need a loan this time around, because we’ve got enough saved up for a decent, new to us vehicle, whether we decide on a car or a truck. However, if there was a very low interest rate on a car loan, we would definitely consider taking it out. We make about 6% on our investments in ETFs, so if we could get an interest rate at 3% or less, it would be worth it for us to just take the loan and keep our money in the investments, working for us.
Whatever we decide when the time comes, we will have options because we’ve saved and planned for our vehicles to give out one day. It is comforting knowing that if and when it happens, we can replace with no problem.
