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Thread: Paying Myself Back
06-09-2012, 07:53 PM #1
Paying Myself Back
I sold some property and with proceeds bought a new car. (I really needed one). I paid cash for it.
I have decided to pay myself back for the car. I opened a savings acct. for this purpose, figured out interest payments, and am making car payments to myself beginning this month. So, I am planning on paying this car off, early..... throwing as much money as I can each month, but ALWAYS making the payment until I have the cash back in the bank.
Is this a wise thing to do? It is not my EF, just my car money back.
- 06-09-2012, 07:58 PM #2
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I don't really see the point, but it's sure not going to hurt anything. The money is going to still be available if something comes up that you need it, so why not?
Happy saving!06-09-2012, 08:09 PM #3
I know it may seem silly. I just want to see if I can do it.... thinking, what if I HAD to make a car payment for the next 6 years. Could I afford to do it, and still be alight financially. There may be months in the next 6 years (or sooner) when I would have trouble making a car payment. It is just something I want to do... I know it's just saving money.... but, I could go buy another car someday, if I had the cash.....huh?06-09-2012, 08:18 PM #4
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I'm not criticizing! You have nothing to lose, so go for it!06-10-2012, 10:03 AM #5
The life of a car is not that long. Most people do not even keep them 10 years.You need to be able to continue the trend and pay cash next time also. Thus making the payment to yourself is very smart. In case of emergency you could use it ( like car repairs) but I think car fund is very smart.06-10-2012, 11:49 AM #6
Thank you. My last car, a 1994 Geo Prizm, I bought new in 93. Financed that car, and paid it off 3 times, as I kept taking out loans against it. Well, that was 19 years ago. I still have that car. It still runs (looks like crap), and I am giving it to my son so he can get some more use out of it. I plan to drive my new one until either it or I die.06-10-2012, 12:04 PM #7
I think it is a good idea. That way you have cash to buy your next car. We keep our cars a good 10-12 years and we do the same but call it a sinking fund. It works for us.06-10-2012, 03:24 PM #8
- Rep Power
I say GO FOR IT............money in the bank is just that............money in the bank. You will still have access to it if needed for something else and however you get it there is good...........so whatever works for you!!
Enjoy your new car!!!06-10-2012, 07:39 PM #9
- Rep Power
Yeah, what's up with that? We had a mid-sized Buick back in the mid-nineties for one year. It consistently got 35+ mpg. I don't get why they can't make a car now that does that. They just tout cars that get less miles like it's a big accomplishment.
(Yes, I do know part of the reason is because of the new safety requirements that have come up over the years, which adds weight and ends up cutting mpg. And if I have a choice between safety features and better mpg, safety will win every single time.)06-13-2012, 10:52 PM #10
Yes, I put over 300,000 miles on that car. Actually, I blew the engine at 250,000, and got another engine at a junk yard for $700 and put it in (out of a toyota corolla), and it is still going. But there is so many other things to fix on it, cosmetic wise. Only 2 doors open. the paint is peeling off, the headliner fell down, the radio doesn't work, it has so many dents and dings.... I know my son won't care to fix that stuff up and he wil have another car for his family. (3 kids at home, 1 out of house).
So, that little Prizm was great, but it was time for another one.06-14-2012, 02:32 AM #11
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I say 'go for it'. Our cars have lasted us 16 years each so far...and counting. We aren't planning to get rid of our Toyota Corolla any time soon. It still has life in it. The mechanic thought it would be good for 500,000 km at least. We're nowhere's close!
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