We are now in debt again.

**my4littlebuffaloes** · 07-12-2009, 04:09 PM

I really didn't want to have to take out another car payment, but sometimes life gets in the way. Our van was totally unreliable and driving 1000 to SC was really stressing us out. Wanting to take advantage of the stimulus plan that will allow us to write off our taxes, and get rid of the bad car, we started looking at new vans. Actually we started looking at used vans, but they were only about $1000 less than new. We had hoped to get a new 2009 Sienna for a greatly reduced price, since it is end of the model year.

Well, after negotiating through email and phone, we ended up getting a new 2010 8 passenger Sienna, for about $2,000 more than all the used 2009 vans we were looking at. We didn't want to get a car that was more than a year old, or with a lot of miles, because we plan on keeping it 10 years and putting a couple of hundred thousand miles on it ourselves. We did put $10,000 down, but we still will have payments of $381 each month. Ugh.

My goal now is to get it paid off within the year. I will add it to my signature, once I get the first payment notice, because I am not sure exactly what the payoff is right now and will be putting all extra money towards the debt. I hope we did the right thing by purchasing now. Car dealerships certainly are doing everything they can to move inventory right now and it is a good time to buy. I had just hoped to save all the cash needed before having to replace our old van. Hopefully next time though.

**mauimagic** · 07-12-2009, 04:14 PM

Sometimes you just have to bite the bullet and in my way of thinking - family and safety comes first. Just think - once you pay this off, you'll be able to build a fund to pay cash for the next one!!

**Nana2two** · 07-12-2009, 04:17 PM

Sometimes we have to do these things. In the long its the best thing. Im not a big person on putting tons of money on to repairing cars over and over again if its minor repairs thats one thing. But if the miles are really high and you know that at some point the end is near. you will have too. I think its great you will try and have it payed off within a year. I wish the best of luck.

**frugalfranny** · 07-12-2009, 04:30 PM

Am sure you will get it paid off as planned........good luck.

You will also feel much better having the new car and not having to worry about break downs, etc.

**jamie79** · 07-12-2009, 04:43 PM

We just did this as I had my car in the shop 3 times in the last 18 months. Thankfully it was all under warrenty. Well the warrenty expired and dh has a hinky feeling he may be headed to Afghanistan and if he is he wants me to have a dependable car so we just bought a 2007 Jeep Liberty. with 22,600 on it.

**elphie** · 07-12-2009, 05:23 PM

I always like to think of Suze Orman's advice when it comes to finances... people first, then money, then things. When it comes to safety you just don't scrimp. It would be ideal to save up until you can pay cash for a car but that just isn't always possible. You have to prioritize and make the best decision possible within the reality of your life and bank account as it is, not how you wish it was.

**AmyBoz** · 07-12-2009, 06:37 PM

My guess is that you've actually wound up saving yourself a ton of money over the next few years by getting rid of a car that would, inevitably, wind up needing a bunch of repairs. Also, the peace of mind that comes from knowing your family is traveling safely has no price.

**Debbie-cat** · 07-12-2009, 07:12 PM

I think you did great in having a big down payment. It was something you needed...not something you wanted. Your families safety is priceless.

**amlitrocks** · 07-12-2009, 08:58 PM

I'm sorry to hear that your van died. As a loyal visitor to your blog (love the money saving tips), I know you did your best to save the money so don't beat yourself up over it. Life happens. Just keep plugging away at the debt and soon it will go away. Enjoy the newness of the vehicle, we frugalites usually do not get to enjoy the new car smell.

**CrazyCat** · 07-12-2009, 09:08 PM

I agree with everyone here. Safety comes first.

I have to say~CONGRALULATIONS on having $10,000 down. That's awesome as it is...and I'm sure it won't take you long to pay this off.

Unfortunately....I think everyone here will also always need a reliable safe vehicle. The key is to have a good size down payment..and pay it off as soon as possible. I think that you're showing people how it can be done.

**frugalwarrior** · 07-12-2009, 09:15 PM

Yeah, were in the same sorta boat. I wanted to end the year w/ less debt. but the bottom line will be higher by Dec. Even w/ mortgage paydowns. We got 4 drivers now where we had 2 at the beginning of the year.We have 1 vehicle w/ 70,000 miles on it. 2 drivers are afraid of the van and my DH has no depth perception so we need at least 1 more vehicle. I feel your pain. Congrats on the new vehicle.

**ladykemma2** · 07-13-2009, 08:43 AM

enjoy it.

can you start a sinking fund now for "car repair/replacement"? $200 a month should do it.

**kita** · 07-13-2009, 08:50 AM

On The Simple Dollar, the Trent got He!! for buying a new car with payments, but his reasoning was about the same. I'm not sure I completely agree but, truthfully, even if it isn't exactly the same finance-wise, the difference will probably never be smaller than right now. If you were able to take advantage of the stimulus plan, and the low 2009 prices now, you got a good deal for what you got...
I can't afford anything right now, but I am hoping that when all the silly people who are buying cars right now trade them in (in three years), I can get a good deal. Obviously you are not one of the silly people who will be trading in your van....

**Monner 1** · 07-13-2009, 09:14 AM

Some things are just necessary and a safe reliable vehicle is one of them. You had a great down payment now enjoy your new wheels and don't fret I think you have everything under control.

Monner

**FrugalMomof3** · 07-13-2009, 09:59 AM

I agree that some things are needed and in your case it surely was. Plus paying it off within a year is great, you've already put a nice chunk to it and according to your siggy, you have over $4000 more for it.