Tuesday, August 11, 2009

We Bought a New (Used) Car


One of the most popular mantras in personal finance is to drive your car until it dies...which is what, unfortunately, ended up happening to my fiance's car. It wasn't SO unexpected. The car had stalled a few times recently and had been emitting a less than pleasant smell. Also the air conditioning has been broken the entire time I've been dating him which...well, isn't so pleasant in the humid Northeast summertime.

To add insult to injury, the insides of both driver side doors had started to give way, making it nearly impossible to open the door. Several weeks ago someone had also broken his side view mirror in a parking lot.

Yet we hoped we could make the car last a few more months, especially since we didn't use the car everyday. But as the saying goes, "you make plans and God laughs." So we hit the Internet, the newspaper and the street in search of a newer car.

I'll spare you the automotive mumbo jumbo and skip to the chase: we got a beautiful 2008 Hyundai Sonata Limited. Didn't qualify for Cash for Clunkers sadly enough. With a $500 down payment and $500 credit for our "trade in" (which was dead in the parking lot of the auto mechanic at that point) we financed the remaining $15,000 at 7.99%, a rate that's a pretty standard right now for used cars.

As much as it sucks to introduce a new monthly payment into our lives (my fiance hasn't had one in years and I've never had a car loan) I am a big fan of the new car. I've only been allowed to drive it around a parking lot until I get around to renewing my driver's license but it drives really well and I know it's a car we will have for a long time. What this means, however, that now more than ever, the onus for saving for the wedding is on me. And I'm up for the challenge. I see it as my way of contributing financially to our lives.

11 comments:

Moving on up! said...

I heard those cars last a long time too. Nice choice!

Berry Girl said...

My car loan interest is actually 4.5 for used car. Your int rate seems to me too high have you shopped at all? do you have a good credit?

Sallie's Niece said...

The car loan is in my fiance's name and he has great credit. We shopped it around but apparently that's the going rate for our area.

stackingpennies said...

Exciting to get a new car! it is too bad that you have to have a car payment right now, but there isn't much you can do about it I guess.

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Anonymous said...

My interest rate for my car was 7.5 and I have credit in the 800 range. Couldn't get lower anywhere else.

Chad Parmenter said...

Wow, Hyundai Sonata is a great choice. It's affordable and reliable. I'm sorry about your old car! Murphy's Law can sometimes strike unexpectedly. But the important thing now is, you got a capable replacement. Congratulations!

Immanuel Llorens said...

Yeah, losing a car can suck a bit. Well, at least you'll be able to drive a better car soon, right? It might be smart to do a bit of check-up on the car's state first -- see if the tires are good, the engine oil is fine, et cetera... since caring for your car can do a lot of good in the long run.

Ivo Beutler said...

Hmm, that's a pretty high price for a used car, but it seems you're satisfied with it! Well, that's good for the both of you. Because you like your car, you are more likely to take good care of it. That will make it last longer! Cheers!

Junior Perrera said...

You exactly did the right thing! The internet is one of the ultimate sources in finding a used car. However, I have to agree with Ivo about the price, but what’s important is that you’re happy and satisfied with your choice. You definitely have good taste in cars, huh! That might also be fit for a bridal car, hehe.

Nicole Vickers said...

That was a smart decision to purchase a new car and trade in the old one. I’d say that’s a pretty good trade off. How’s the car now, by the way? I hope it’s still in good condition. Just keep in mind to clean and maintain it to lengthen its lifespan.