Okay, so you may remember a few weeks ago that I talked about all of the debt that we had at the beginning of this year. One of the things I listed was a car loan. Now, you may remember that a few months ago I wrote about paying off our car loan and then even asked if you felt that we should try to purchase a new car (having to take out another loan) because of all the mechanical problems that we were having or continue to pour money into the “potential” repairs.
The first time I ever took out a car loan was in 1998. At that time I had already owned three vehicles that were either given to me or were purchased for less than $1500. Because of the insane amount of driving that I did back then (over 40,000 miles a year), none of them lasted for more than a year. It was at that time that I decided that the best thing to do was to purchase a new car and take out a loan. Once I paid off that loan (I was not married at the time), I told myself that I wanted to be in a position to never have to take out a car loan again – my goal was to only purchased used cars.
However, after nine years and almost 200k miles (my wife and I were married by this time), the car began to need a lot of expensive repairs, and we eventually had to replace it. Unfortunately, we didn’t have enough money saved to buy an adequate used car, and we were not in the position to drop down to one vehicle.
We decided to purchase my current vehicle (the Impala that I’ve written about many times before) at the end of 2007, but because of a number of financial obligations that we already had, we decided to take out a 6-year loan. This brought the payments down to $161/month, which was important at the time because of the tight position that we were in at the time, and the fact that we still needed a reliable used car.
As with my Cavalier (the car I had for over 9 years) we said that we wanted to keep the Impala for as long as possible while we dig ourselves out of massive debt. A couple of years ago when my wife’s car died after 19 years on the road, God blessed us by having her parents give us a car (since they were moving out of the state) about a month after the old one died! This allowed us to avoid having to purchase another vehicle years before we were ready.
Unfortunately, we are in that position again now, but that will be the topic of another article (this is just about how we got into debt).
So, in the case of our car loan, we tried to explore other options to avoid this debt, but the combination of debt and our living situation caused us to have to go this route. We are hoping to be able to find another solution for our current situation – which we will be writing about in detail to see if you all come up with any suggestions.
© 2013, fatguyskinnywallet.com. All rights reserved.