Last week, as I’d mentioned both on Twitter and on my spending recap, my car finally called it quits.
The Nightmare
First, the locks went. Then, the temperature started skyrocketing. There was a clunking noise in the engine. Finally, it died six feet from
my driveway (okay, that part was lucky). After J and I pushed it into the driveway, we popped the hood and looked at what was wrong. J thinks it’s a cracked engine block, but in any case, it’s my dad’s car and he wants to look at it to see if it’s salvageable, so he’s getting it towed to his shop for possible parts.
I knew it was going to happen within the year, but I suppose I wasn’t prepared for it to happen this soon. I thought I would have at least a few more miserable months with that big hunk of steel. But, being a Type A neurotic planner, I, luckily, had been looking at cars with the suspicion that this would happen. This allowed me to act fast, out of necessity.
Since I work 75 minutes (on a really great, clear, light traffic day) away from my internship, plus another half an hour away from school, I require a car. It’s just not possible for me to take public transit. For example, J even had to drive me to work on Wednesday, the day after the car broke down, because the buses didn’t run as early as I’d have to leave in order to get to work on time. He had to take half a day off to chauffeur me around. So, yes, I need a car.
So, I bought a car the following day of finding out that my old car wouldn’t work, and I financed it.
The Dream
In the post above, I listed what I wanted in a car less than a month ago. Here’s what it specifies:
- At the time of purchase, it would have to be less than five years old (Check)
- It would have less than 60,000K on it (Check)
- It would have to be white, black, gray, or another neutral colour for resale value (Check)
- Could be standard or manual, I’m neutral (Standard)
- Preferably four door (I drive my cars until they die, and four door is easier when kids are on the horizon) (Fail)
- Get more than 45 MPG (Fail)
- Be a Honda Civic, VW Jetta, or Toyota (Check)
- Be less than $10,000 (Fail)
- Purchase price: $11,500
- Documentation service fee: $395
- Tax: $1427.40
- Total paid down: $800
- Total financed: $12,567.90
- Interest rate: 4.99%
- Balance to be paid back at any time without penalty
- Interest only accrues on balance owing, not cumulative balance
So, there you have it. I could have purchased a beater for $1,000, but I can’t fathom having to deal with more car issues within just a few months. With my new car, I won’t really even have to worry about anything for years.
Plus, if I move to a place after I’ve graduated that’s in a more convenient location, I can sell it.
The Plan
..Is coming soon.
Due to my crazy, ridiculous schedule, I have yet to write a post about my plan, but it’s coming.
Also, I’ve named her Yolonda. Like — Yolonda the Honda.
Oh no financing! Just kidding. Don’t worry about the backlash – sometimes you just gotta do what you gotta do. A car for you is not just a want, but a necessity. Yes it sucks that you had to finance it, but what were you going to do… walk? buy an unreliable car that costs you more in the end and is unsafe to drive? My car is a beater and I have been extremely lucky that I have had no serious issues with it. But I know if it were to conk out tomorrow,(which could happen anyday) I would be looking at a more reliable, larger vehicle. I don’t feel safe in my vehicle now, and I’ve never been comfortable with it. It was just a means to an end at the time. Just work on paying off that car debt as fast as possible and life will be good 🙂 I love that you are able to pay the balance down at any time without a penalty thats awesome. Good luck!
LOL I can just picture myself walking to work – I would have to sleep there. That was definitely the selling feature of the financing – I wouldn’t have done it if I was locked into the period. I can aggressively pay it off!
I wouldn’t beat yourself up. You need a car and you need a reliable one, so avoiding a beater is a good decision. While it sucks to take on debt, $11,500 isn’t that much and 5% is a pretty low interest rate (especially compared to the 20% on consumer debt on credit cards). You have a plan and want to be out of debt, which is more than most people that buy a car.
I almost buy a mini cooper about every second day, and I don’t need a car.
It’s definitely low compared to credit cards! I was hoping for 0.9% but that only happens on new vehicles unfortunately. Mini coopers are so cute! I love them.
Dont beat yourself up over this and dont worry about what the trolls have to say about it either. Getting out of debt requires income, which requires a job (of some sort) and in your case, that requires a car.
I was in the exact same situation in 09. I was hanging on to car I knew was going to crap out, I just didnt know when. I had hoped it would last till spring, but it died in early december. I borrowed a car for about a week from my parents, and ended up buying one. I got a great interest rate, but single handedly doubled my debt in 1 fell swoop. As of now, I’m just about back where I started 2 years ago, but I’ve got a reliable vehicle now that I dont have to worry about – which was worth the added debt.
I’m just hoping I can pay it off in 2012! We will see where my circumstances take me, but that would be awesome. I definitely appreciate your comment – it’s nice to know when you’re not alone!
That stinks about your car! But you really needed one, and that car should last awhile.
I hope so! I’m going for 10 years at least 😉
Yolanda the Honda!! Amazing!
Congrats on your new car, Daisy! I wouldn’t let the PF haters get you down. Of course it’s always better to buy things in cash but that’s just not realistic for a lot of people, especially when it comes to cars and houses.
And I think you did the right thing buying a good solid car and not a beater. Especially with that commute? No way would I have wanted to deal with that with a car that could potentially break down at any minute. I’m looking at buying a car sometime within the next six months or so, if some other life things fall into place, and if I do, I’ll do the same you did. I’m even considering buying a NEW car (omg!), if I can get a solid warranty and 0% financing. We’ll see!
Oh, and for what it’s worth, my parents bought a 1995 Honda Civic last summer, just because they needed a second car, stat, and it was cheap. They’d hoped to get a year out of it. Well, it’s been about six or eight months, and the car runs like a CHAMP! Seriously. The body is pretty beat up, but it’s given them no grief whatsoever, and it’s got almost 300k on it! Honda Civics, man, they last FOREVER.
Hahah I love her name. It just came to me. Thank you! I’ve surprisingly had no backlash about the financing as I thought I would. I love the PF Community – so supportive.
I considered a new one! I actually couldn’t even afford the payments, though, otherwise I may have. Plus, I feel like I got a pretty good deal on Yolonda.
Civics are freakin amazing. I love them. I had a friend who had a civic with 420,000 KM on it!
Wow! $12,000 for that honda all together is a really good price! I am actually glad u got the honda instead of a beater. You really can get ur money’s worth out of this car and your commute is long so its better knowing that you are going to be safe and comfortable rather than worrying whether or not your car will breakdown. My friend has a 1997 acura (same engine as honda) and he is still driving it to this day! 300,000 km! So your honda has a loooong way to go! 🙂
I am heading to the dealership today to buy out my car ~ finally ~
I thought it was a pretty good deal, especially compared to many of the others I was looking at. My commute will actually half when we move, but it will continue to be a long way for school, and with my crazy life I’ll probably never NOT need a car.
Ohhhh! I’m excitd for you!
That sucks about your car, but I am happy to hear that you have a more reliable ride now. Ideally, it would be best to pay for it in cash, but its understandable that sometimes, that’s just not possible. I think you’ve made thebest decision, given your circumstances. You’re going to have a plan, and really, that’s half the battle when it comes to getting rid of debt.
Love the name too!
It’s definitely a relief – so much nicer to drive and even better on gas. I’m a planner – I would perish without a plan 🙂
Congrats on Yolonda. Even though you had to take on debt, it seems that a car is a necessity for you, and you did the best you could under the circumstances.
I think that $11,500 is a great price for a relatively new used car. And Honda’s are very reliable, from what I hear. I am also glad that you have a much safer ride. Car repairs and break-downs are such headaches – I really don’t think it’s worth it for a beater.
Enjoy her and can’t wait to read your plan! 🙂
THANKS! She’s cute. That was definitely a selling point for Hondas for me – the most reliable in North America for a few years now, so I know I’ll be getting the most bang for my buck.
Financing OUCH. Well I guess it could have been worse. I mean imagine breaking down closer (FIVE FEET) to your driveway instead of six and then financing a car. 🙂
I know 🙁 Haha I did luck out with where I broke down 😉 I’m pretty happy about the car, and I’m starting to forumlate a solid pay-down plan!
Congrats on the new car Daisy! Anything I’d say has already been said, but definitely nothing to feel bad about! Cars are awesome and I hate the bus – plus it doesn’t sound like you have the option of the bus anyway. I used to have a Corolla and it was a sturdy little workhorse. Yeaaa Japanese cars! 🙂
Thank you! The more I drive her, the more I know I made the right decision for me. I’m not sure why, but Japanese cars are the best!
Whoa. I like the new site. It looks great.
And congrats on the car, btw!
Nice car! Hondas are great. You’ll enjoy this ride for many, many years to come.
Nice new look to the site!
Nice post 😆
Cheers,
Mark
Ooooh, I love your new car so much! And seriously, the interest rate isn’t that bad and it beats having no car or a car that is constantly in need of repairs. What you pay in interest you will recoup in lack of stress over your car. 🙂