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Everyone I ask keeps using this argument of

new cars losing value so quickly but it really isn;t true. What I am thinking of doing is waiting until like January and getting a 2013 leftover. And if I can find it, and I will look until I do, even if I have to go to another city, is get one that only has automatic transmission and air conditioning because I really do not need anything else. When you compare the prices of a basic 2013 model with only those few features, compared to the same car that is 2-3 years old and LOADED with options, which most of them are, the price of that used car is WAY higher. I bought several new cars when I was younger and this was always the case, the brand new leftover model with the few features I needed and wanted was way cheaper than the used model with more options.

So I figure, why not start out with zero miles and a full warranty and get it for less.

I know a girl who within the last few days, got a brand new Nissan Versa with only automatic transmission, for $13,000. This car didn’t even have power locks and windows but she didn’t need all of that and neither do I. I guarantee you if she looked at used ones, they would have had tons of options and would have costed her more.

Praise the Lord! We seemed to have found the problem.

On Friday, my hubby bought air filters for both the van and our truck. He checked the one in the van and it was still clean so he didn’t replace it. Well it turns out when he did that, he didn’t hook a hose back up to the air filter compartment. he hooked it back up today and it seems to be running fine now.

Thanks everyone for your encouragement. So thankful that our emergency fund was able to go untouched….at least for now.

We’ve got a close friend who has no objections whatsoever to

financing anything (he’s not a LS fan and I’ve written about our, ahem, differences of opinion before). He just went through an interesting car-buying experience that you might find helpful. He commutes about an hour to work every day, and he wanted to replace his aging Toyota Corolla. It’s been very reliable but in his eye it was getting a tad old. Even though he has no philosophical objections to financing, he did NOT like the idea of buying a new car because of the issue with loss of value as soon as the car is driven off the showroom floor. So in that, we were/are in complete agreement. So he’s been shopping for some “gently used” vehicles, and was very close to buying a 2012 Ford Fusion. Yet he announced yesterday that he is the new owner of a brand new Hyundai Sonata. The reason? Their new price was actually better than most of the used car prices he’s been seeing.

So without getting into the topic of whether or not you should finance, just be aware that apparently Hyundai Sonatas are being marketed right now for relatively low prices. And apparently their mileage is at least as good as his trusty old Corolla. Not sure if that’s what you had in mind, but that was his shopping experience within the last 24 hrs.

I think these aren’t the only two options

I am against buying a new car even when people can afford it, because a new car drops a huge chunk of value the minute you drive it off the lot . FOr example, if you buy a $20,000 new 2013 car, you can only *insure* it as a *used* 2013 car. So if it’s stolen tomorrow, you are out of luck.

There are a lot of nearly-new cars coming off-lease, and now that dealers offer free maintenance, these cars can be better than new. You can buy a 2- or 3-year old Toyota or Honda and get all the reliability without the added sticker shock of brand-new, and you’ll even have some warranty left.

My current car is a 2005 Toyota Camry which I inherited from my father with very low miles. He bought it new, and it’s still having ZERO mechanical problems. I’ve replaced the tires and the battery and the windshield wipers. If it had been sold it would have been just as great at 3/4 the new cost.

My previous car was a 1991 Camry which I bought in 2004 for an above-book $8k, with 75k miles on it. I drove that car until 2009! In eight years I had to replace the power window motors and some parts of the suspension and exhaust. In 2009, a whole lot of stuff broke at once, just one week before I was due to pick up my dad’s car. Donated it and it sold at auction for $550.

Unless something drastic happens, my next car will be a used Toyota, no matter what I have in the bank.

Need a car

I live in a major city and currently do not have a car and don’t really need one. However, I am going to be moving out of the city into a more suburban area where I will be buying a house and definitely will need a car to commute to the city. Please don’t suggest that I buy in the city so I don’t have to spend money on a car because it is WAY too expensive to buy here. I have been mostly out of debt for 5 years except for a tiny student loan and a very low interest rate and have an emergency fund.

The last 3 used cars I had were TOTAL lemons and costed me HUNDREDS in repairs and things got so bad that I would have had to have spent even more if I kept any of them. So I feel really jaded about buying a used car and have had an extreme amount of bad luck.

What I really want is to have a super reliable car that will last a really long time. One of my friends has a Honda Accord that she has had since brand new and it is now 25 years old, she has had very little problems and it still runs great. This is what I am thinking I want, a brand new Honda Accord or a Honda Fit that is completely reliable, under warranty, that will last for 20-25 years.

Because I am saving to buy a house, I can’t also save to buy a new car and pay cash for it. Do you think that given my debt free situation, that it would be bad for me to buy a brand new car and finance it? I would have enough monthly income to pay extra and pay it off sooner. I know Dave is against buying new cars, but since I am planning to keep it for 20+ years, and am debt free, it seems like it would be okay. And like I said, I have had sooooo much bad luck with used cars, I just don’t want to go there again. Please let me know what you all think.

I think running a radio show means keeping the plan simple enough for

sound bites, and also the plan is simple to keep people on track and fired up, no arguing no excuses. The argument for paying the smallest debt first is that seeing progress is encouraging, and also it frees up the amount of the first payment to add to the snowball. And , to a certain extent, being mad at a debt can make you go faster. But you know your own life and you know whether you are fired up.

Me, I’d pay off or refinance that big one and I’d be on fire to pay it off FAST. It’s probably not too hard to find a way to roll it over but check the fine print because some rollover “zero interest” cards accumulate the balance, or go to astronomically high interest if you miss a payment.

No one stone me for this

but I’ve heard M suggest when you have such high interest rates to look into getting a lower rate by getting a signature loan or worse case scenario do a balance transfer. Then work like crazy to get rid of that debt before the rate goes up on the transfer.
There is no way I’d pay that type of interest rate, even if I had to sell everything to get rid of that cc.
If you only had 1-2 cards I would stay stick with DR’s plan because in the long run the difference in what you pay would be minimal, but with five other debts that one is going to be the last one in the train. Unless you can really knock those other 5 out quickly I’d seriously look at killing that big one in one way or another.
As soon as you said Capitol One I knew they wouldn’t work with you, and be aware they are selling a lot of their accounts to Citibank, which is worse.
While I’m not a big advocate of balance transfers, I’d really look into doing it if you can’t get a signature loan. One with zero interest rate for a year or longer preferably.
Also, if you can’t get a loan or a bt then pay all you can every time you can. Interest is figured on the average daily balance so even if you only find yourself with $5 extra dollars on any given day, pay that five online right then. We are saving a lot of money on interest doing this. Not only by lowering the average balance, but because the interest is compounded DAILY, thus bringing your average daily balance up higher if you aren’t applying money to it constantly. So the faster you lower your average daily balance the less interest you will pay.

I have a dilemma

We have been paying off smaller debts now we are getting into the larger debts. I have a $13,200 Sony CC that is closed but has an interest rate of 21.24% and they will not work with us so right now every $400 min. payment we pay $240 goes to interest so not getting anywhere fast. We have 6 debts that are smaller that range from $2,500 to $7,500 with interest rates of 4.99% to 9.99% with only Sears $5,500 at a higher interest rate. I know Dave says the snowball should be lower to higher. But where there is such a difference in the interest rate we are then wasting a lot of money on interest. $240 in interest on that 1 card just pains us and if we could get that down and gone there would be so much extra money not going to interest only.

I know this might be opening a flood gate but if you were in our shoes would you do it exactly like Dave says and hand over that $240 in interest to a company that is so hard to work with oh by the way it is Capitol One. They bought the Sony cards used to be Chase.

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