It’s here! The day I never thought would come.
I feel so great, there is nothing more I can say about that. No more vehicle payments.
Vehicles are still taking an awful lot of money out of our pockets for gas and insurance, and I’ll be super happy when we only need one car, but at least the car payments are not one of those expenses.
All the vehicles that are in our yard are now owned outright.
I was paying $1.17 a day on interest for that car payment over and above what was billed for the actual amount. I just saved $854.10 of interest in the last two years of payments that I just avoided.
Here is where I show you how much I could have saved if I had not had car payments but paid the truck outright. The full interest amount for the 6 years if I had stayed on payments would have been $2562.30.
I paid out $1708.20 of that on top of the $15000 + tax that I paid for the truck.
Why am I saying all of this? To show you how dumb I am? No. But to help someone else doing the same as I did or thinking it.
For the sticker price of this vehicle. I ended up paying $18659. Which is what that vehicle ended up costing me and would have cost me $19514 if I had not paid out 2 years earlier. My payments were to end in May of 2018.
If I was to do this again, I would first get a cheaper vehicle (you can get some decent deals on second hand cars and a much better one than I did on this one), but if not, would have saved up most of the cost.
Showed up with cash and negotiated the taxes (like none if possible or lower the price of the vehicle).
And then have concentrated on paying off the amount left on it in the shortest time possible if anything was still owed.
So that a $15000 car did not end up costing me $20000. That is a lot of money to lose to fees, interest and taxes.
I am sharing so you get to see where your money is going and not be fooled by those affordable payments every month that lull you into thinking you are getting a good deal.
$5000 to pay more on a vehicle than the actual selling price is not a good deal.
A good deal is paying what is advertised on the windshield of the car.
A good deal is not paying so much for a vehicle that was already 4 years old.
A good deal is something that does not tie you to spending all your days worrying about bills and working to pay the vehicle that is traveling you to work to pay it.
Getting my drift.
I have learned and hope I can share my wisdom or lack of it to help others. We need to be so much smarter with money and need to share the wealth of wisdom so we can make better choices.
I am sharing my skewed choices to help anyone out there who is willing to listen. I wish someone would have tried to help me when I sat at that dealership, ignorant to what I was getting into.
I may not have listened but at least I could say that I knew what I was doing.
(For those of you saying that the contract had all that mentioned in the fine print, my only comment to that is 1. excited to get a vehicle and 2. have you seen those papers, I’d be surprised how many do actually read it out completely before signing).