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    CFZD's Avatar
    CFZD Posts: 385, Reputation: 49
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    #1

    Sep 9, 2014, 06:12 PM
    Being frugal
    Hello there,

    I love cars, and would like to get a nice car for myself. I have no problem pay for it financially. On the other hand, I am very frugal, I save a huge% per month. It makes me happy to save a lot of money, but I will be happy to own a nice car finally as well. I have a hard time spending money, but I really want a nice car.
    I know most of you will tell me to do whatever makes me happy... but do either will make me unhappy and I can't do both.
    I torn between buying this car and save more money... what do I do?

    Thanks,
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #2

    Sep 9, 2014, 06:16 PM
    Save the money... due to the wonders of compound interest... the money you save with we worth many times what it is now, if you spend it on a car that will essentially be junk in a relative few short years. Which will require ANOTHER purchace.....and being used to a fancier car then...harder to get the more modest one.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #3

    Sep 9, 2014, 06:24 PM
    I am frugal too, and often torn between a big fun purchase and watching my savings grow.
    I REALLY wanted heated leather seats and a moonroof, among other things, and almost bought a new car last month. Decided not to.

    Let me ask this: what % of your savings will it take? Will you be transferred back to Europe again? Are you prepared for high car insurance? Do you know which cars have high maintenance costs, such as $500 for a tail light, etc? Do you have to park in any unsafe lots for work, or where you live, or do you tend to go shopping in crowded places where door dings and shopping cart dents are common?
    CFZD's Avatar
    CFZD Posts: 385, Reputation: 49
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    #4

    Sep 9, 2014, 06:34 PM
    About 80%, I am VERY frugal. I hardly buy anything, but I really like to have a nice car... but I will feel so bad to buy that car, I know it!
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #5

    Sep 9, 2014, 06:39 PM
    THere are nicer cheaper cars these days... There is a vast range between a Tata Nano and a Bentley. Not all inexpensive cars are austere death traps devoid of any creature comfort. Like they were in years past. Say 20 - 30 years ago or more. I have no idea how old you are for a matter of perspective.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #6

    Sep 9, 2014, 06:44 PM
    1) This is the best time of year to buy a new car - sort of. The 2014s are super cheap, but only if they aren't loaded with accessories and packages you don't want. Those add a lot to the base price, so if you know how to research dealer prices, you can be ruthless about bargaining away those extras. The dealers do pay for them, of course, but mark them up a lot more than they mark up the base price of the car.
    2) I call the feeling of regret after a purchase you don't absolutely need Post Purchase Depression (PMS). Hope you like it. I use that term a lot, and a lot of people say 'YES, that's me too!'
    CFZD's Avatar
    CFZD Posts: 385, Reputation: 49
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    #7

    Sep 9, 2014, 06:59 PM
    My problem is that if I spend more than $10,000 on a car, I will be guilty as heck... :(
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #8

    Sep 9, 2014, 07:08 PM
    You can find a new car for $10,000? Where do you live. You are getting used cars for that price where I live.....sometimes very well used ones.
    Chawmp's Avatar
    Chawmp Posts: 4, Reputation: 2
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    #9

    Sep 9, 2014, 07:09 PM
    My advice: Buy a used Lexus or Toyota. About 3-5 years old. Private party (preferably an older person, original owner). Pay cash and don't be shy about haggling over the price. Take your time and do your research. These are excellent cars that are very reliable and will hold their value. Happy hunting!
    CFZD's Avatar
    CFZD Posts: 385, Reputation: 49
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    #10

    Sep 9, 2014, 08:34 PM
    Smoothy, just generally speaking I won't spend over 10k on a car, no new car is this price level any car that isn't my current one I call it new car. :-)

    I have tough time spending money, it's has been my problem, I looked at one of my old post 6 years ago here, I had a similar question. I am so frugal, it is crazy how much I make and save vs how many I spend... Why I am so frugal?
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #11

    Sep 10, 2014, 05:15 AM
    Well, being frugal is not a bad idea. Look at the fools that spend every dime they make and then some, up to their armpits in debt. (I can say that because I was once one of them in my misspent youth). Trying to live a higher life than they can really support.

    Try to view this realistically. Since you really don't want to be tossing out a lot of personal info online.

    How old are you now? How much do you have set aside for retirement right now? Half a Million Dollars? Probibly not going to be enough to retire on... do you have a million plus set aside? That will be more than enough because you have to plan on living past 70. What happens if you live 20 or more years into retirement and the money is gone long before then?

    Are you being unrealistic? You really might not be... or you might be. Have you spoken with a financial advisor yet? An independent one, one that doesn't hawk any products or financial instruments. If you have... what did they say about how you are set financially?

    I have to mention that because while you are on a good path... maybe you really don't have as much saved as you are going to need in your older years yet.

    I've seen and known too many older people scraping by on Social Security because they were never able to set enough aside. Many because they really couldn't afford to set asside a lot because they never made a lot to begin with. Your retirement are the years you should be able to do some of the things you put off your entire life.

    Perspective... thats what its all about. If you make $100,000 + a year, already have several million in the bank and can't spend more than $10,000 on any car... THEN there might be something unreasonable going on... if you see the point I'm making.

    Years of Frugality during your working years will result in a retirement that's less likely to be consumed by worrying about how you are going to make it through the month when you only have X amount of money and there isn't any more. Fair trade if you ask me. One I wish I had listened to my parents about 10+ years sooner than I actually did.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #12

    Sep 10, 2014, 06:36 AM
    This doesn't add up. If you are talking about spending 10K (assuming a trade in?) and that's 80% of your savings, you have only saved 12-13K. That's not a lot at all.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #13

    Sep 10, 2014, 06:46 AM
    Where did you see them post that... I can't find it, that certainly changes everything as I agree, that would be, very, VERY little money saved.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #14

    Sep 10, 2014, 08:48 AM
    #4 (after I asked)
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #15

    Sep 10, 2014, 09:01 AM
    Darn... I must have looked right past that a dozen times.

    I COMPLETELY agree... they do NOT have very much saved. That's only about 4-5 months rent in this area and nothing extra.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,303, Reputation: 7691
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    #16

    Sep 10, 2014, 06:27 PM
    Agreed, That is not a lot of money. And perhaps they need to keep saving at this point.
    CFZD's Avatar
    CFZD Posts: 385, Reputation: 49
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    #17

    Sep 10, 2014, 09:02 PM
    I am sorry, I meant I save 80% after tax each month! That is a LOT. I make nearly 6 figures. In my late 20s. The car I am looking for is over 10,000 used but I call it new as it is a newer car for me.
    Alty's Avatar
    Alty Posts: 28,318, Reputation: 5972
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    #18

    Sep 10, 2014, 10:35 PM
    Bottom line is this. Can you afford the car? Do you need the car? Will the car save you money in the long run (no more money spent on taxi's, or taking the bus), or is it just an impulse buy, something you want, not need?

    Make a pro and con list, then decide. Once you decide, accept your decision and move on.

    As to why you're frugal, only you can answer that. No one here knows why.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #19

    Sep 11, 2014, 04:06 AM
    Sorry to nit-pick, but unless you aren't paying for housing, I find it hard to see how you save 80% of even a salary over 90,000. After taxes you might take home 5,700/mo, and save 4,600/mo (that's over 55,000 just in one year!)
    Meaning you live on 1,100/mo. Only possible if you don't pay rent.

    Again - this is a VERY good time of the year to buy a car. So I say go for it. Accept the fact that everyone has little doubts after a big purchase! Just bargain, bargain, bargain. Research Kelly Blue Book and Edmund's for dealer invoice and for what people are paying. Pay a small fee to Consumer Reports for how a used car has held up statistically.
    CFZD's Avatar
    CFZD Posts: 385, Reputation: 49
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    #20

    Sep 11, 2014, 04:28 AM
    Joy, that's why I told you I am VERY frugal. I am able to live on $1100 a month and I am paying mortgage of 500 a month. :-)

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