Paying Myself Back
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  1. #1
    Registered User acabin42's Avatar
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    Default 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.
    Count your blessings--name them one by one."



    My Blessings:
    DH - 43 years
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    11 grandchildren

    Furbabies: 5 dogs, 1 cat

    God Has Really Blessed me.

  2. #2
    Registered User Spirit Deer's Avatar
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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!
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    “Anything you cannot relinquish when it has outlived its usefulness possesses you.” -Mildred Lisette Norman
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  3. #3
    Registered User acabin42's Avatar
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    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?
    Count your blessings--name them one by one."



    My Blessings:
    DH - 43 years
    3 sons
    1 daughter
    3 daughters-in-law
    11 grandchildren

    Furbabies: 5 dogs, 1 cat

    God Has Really Blessed me.

  4. #4
    Registered User Spirit Deer's Avatar
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    I'm not criticizing! You have nothing to lose, so go for it!
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    “Anything you cannot relinquish when it has outlived its usefulness possesses you.” -Mildred Lisette Norman
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  5. #5
    Registered User itlw8's Avatar
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    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.

  6. #6
    Registered User acabin42's Avatar
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    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.
    Count your blessings--name them one by one."



    My Blessings:
    DH - 43 years
    3 sons
    1 daughter
    3 daughters-in-law
    11 grandchildren

    Furbabies: 5 dogs, 1 cat

    God Has Really Blessed me.

  7. #7
    Registered User nodmicks's Avatar
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    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.

  8. #8
    Registered User frugalfranny's Avatar
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    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!!

    Quote Originally Posted by acabin42 View Post
    My last car, a 1994 Geo Prizm, I bought new in 93. 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 had their little 'sister car'---Chevy Sprint---before they quit making them.............and LOVED IT! It never got under 40+ miles to the gallon---even around town and I got as high as 62!!!! I gave it to my nephew with over 100,000 miles on it..........he drove it for over three years, I think it was,......and then sold it to some friend..............THOSE THINGS JUST NEVER DIE!!! (though they are a little 'tin can' to drive............still loved it......and would buy another one IN A HEARTBEAT if they ever brought them back!!) The best mileage car I ever owned!! Every car since that one has gotten worse mileage than the car before!!

    Enjoy your new car!!!

  9. #9
    Registered User Spirit Deer's Avatar
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    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.)
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    “Anything you cannot relinquish when it has outlived its usefulness possesses you.” -Mildred Lisette Norman
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  10. #10
    Registered User acabin42's Avatar
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    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.
    Count your blessings--name them one by one."



    My Blessings:
    DH - 43 years
    3 sons
    1 daughter
    3 daughters-in-law
    11 grandchildren

    Furbabies: 5 dogs, 1 cat

    God Has Really Blessed me.

  11. #11
    Registered User peanut's Avatar
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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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