Found on www.appeal-democrat.com and brought to you by Car Repair Salinas
March 11, 2011 11:17:00 PM
Dear Mary: I recently paid off my car, and I'm getting that itch to buy a new one. I have a 2002 Mazda Tribute with 130,000 miles. It needs about $1,250 worth of repairs. I'm jealous of the features available on newer cars. How can I fall in love with my car again so I'm not faced with another five years of payments?
— Katie, e-mail
Dear Katie: I did a little math on a new Mazda CX-9, which is similar to a Tribute. It has a suggested retail price of $29,135, but let's assume you could get a great deal for just $25,000. You'd need $3,000 for the down payment, leaving $22,000 to be financed, at zero percent interest for five years. (Sounds awesome, doesn't it?) Your payments would be $366 a month. Yes, even with zero percent and $3,000 down. Of course, the dealer would suggest that you lease it instead for only $359 a month. Wow. Imagine that. Only $359. Let me ask you the big question: Do you have $360 left over every month after you contribute to your personal savings, give to charity and pay all of your bills? Where would that money come from each month? By my calculations, your repairs are equivalent to about three new car payments. That's a whole lot different from 60 payments.
My advice is to repair your Tribute, quit flirting with new car showrooms and stop believing that you should be in love with a car. It's a mode of transportation to get you from here to there. What you drive does not define you, but it sure can land you in a prolonged state of depression. Once the repairs are paid, force yourself to start making $350-a-month payments to yourself in a "new car" fund you set up. In a few years, you'll have enough saved to buy a new car outright. In the meantime, never forget that there isn't a new car in the world that feels as good as five years of debt feels bad.
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